trade stock, stock split

Begin part 3 of 3

Corrects buy and position information on MDCC

THE PLAYS

Good movers: TRAD; WFR; WIRE; PDS

Weekend play results:
CWTR: Still forming the handle, holding the 10 day EMA as it tests back.
EFJI: Gapped higher but was giving back the move some. Decided to wait another session.
NETL: Easing back a bit more, setting up the next run higher.
ORCC: Nice low volume fade to the 10 day EMA.
QCOM: Still setting up nicely.
RMBS: Gapped higher on a modest increase in trade to start the play.

New Plays:

Upside:

Play Date: 03/06/2006
MDCC (Molecular Devices--$32.08; +0.17; optionable): Bioanalytical measurement systems for drug discovery, etc.
http://biz.yahoo.com/p/m/mdcc.html
STATUS: Breakout test. MDCC surged off the 50 day EMA (29.86) in mid-February, a nice test of key support following the November breakout and run higher up the 18 day EMA (31.60). After a few strong runs up the 18 day EMA after a breakout a stock needs a deeper test to rest and reset the move. It got that and then blasted higher. The past two weeks it is making a nice low volume test of the 18 day EMA. Monday volume was up toward average as MDCC looks ready to continue the move. Strong money flow is leading higher. Relative strength broke out on the February break higher, a strong indication. Strong fundamentals along with the nice technical pattern.
Volume: 176.425K Avg Volume: 203.708K
BUY POINT: $32.65 Volume=300K Target=$38.95 Stop=$31.44
POSITION: MCQ GF - July $30c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/mdcc.html

Play Date: 03/04/2006
DAKT (Daktronics--$35.08; +0.08; optionable): Indoor, outdoor scoreboards. Just announced earnings on 2-15-06.
http://biz.yahoo.com/p/d/dakt.html
STATUS: Breakout test. Nice tight doji on the 10 day EMA (34.92) on a jump in volume. DAKT got a case of the dips in mid-February, crashing through the 50 day EMA (31.77) when it reported earnings. It was a one-day affair, however, as earnings were solid and DAKT shot right back up, breaking out anew from a 6 week lateral base. It spent the past two weeks easing back on low volume to the 10 day EMA, holding that level the past week. Strong money flow is leading higher even as DAKT makes the test. Very strong market leader with excellent fundamentals to set the stage for the next move to a new all-time high.
Volume: 115.026K Avg Volume: 111.91K
BUY POINT: $35.81 Volume=168K Target=$41.95 Stop=$34.64
POSITION: QKC GG - July $35c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/dakt.html

Play Date: 03/06/2006
TRMB (Trimble Navigation--$42.51; -0.46; optionable): GPS devices. Tentatively forecast in late April.
BACKGROUND: Last announced a 3:2 split on 2-3-04 at $38.20.
http://biz.yahoo.com/p/t/trmb.html
STATUS: Breakout test. TRMB gapped higher in late January on good results, then formed a 5 week handle to its 7.5 month base. Last Thursday it jumped higher, breaking out of the handle on strong, above average volume as it announced a new product. Friday and Monday it started to test that move, easing back on very low, below average volume. Monday it tapped the January high on the low and rebounded to cut some of the losses. Strong 10 to 5 accumulation shows lots of buying during the nice base. Strong money flow. Relative strength broke out last week. May pull back to the 10 day EMA (41.45) before it is ready to rebound, but with the bounce off the January high on the Monday low we want to be ready to move in as it continues higher.
Volume: 250.475K Avg Volume: 392.067K
BUY POINT: $42.75 Volume=450K Target=$50.88 Stop=$40.58
POSITION: TUH HH - Aug. $40c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/trmb.html

New buy point on a current position:

Play Date: 03/06/2006
FFIV (F5 Networks--$67.16; -2.05; optionable): Internet traffic management
http://biz.yahoo.com/p/f/ffiv.html
STATUS: Test breakout. FFIV was downgraded Monday, and that sent it down to the 10 day EMA (66.81) on continued slightly above average volume. It broke out from a 7 week ascending triangle in late February, a nice consolidation from the early January breakout from a 10 month reverse head and shoulders pattern. Strong stock that should survive this downgrade. May come back a bit more; the 18 day EMA is at 65.48, matching the high in the ascending triangle. Looking for a volume bounce to resume the breakout move.
Volume: 1.273M Avg Volume: 1.1M
BUY POINT: $67.65 Volume=1.4M Target=$80.95 Stop=$65.32
POSITION: FLK GN - July $70c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/ffiv.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.

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