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Begin part 3 of 3

THE PLAYS

Good movers: CEPH; DRIV; GILD; QCOM

Tuesday night play results:
GILD: Nice surge off the 50 day EMA.
KOMG: Doji at the 18 day EMA on low volume.
SILC: Fell through the 18 day EMA on rising, above average volume.
CEPH: Solid bounce off the 18 day EMA. Could use some more volume.

New Plays:

Upside:

Saw the move and issued the alert on this one today:

Play Date: 03/08/2006
DRIV (Digital River--$40.03; +1.54; optionable): Internet network solutions
http://biz.yahoo.com/p/d/driv.html
STATUS: Double bottom w/handle. Saw this move intraday and issued an alert on it. The leader in its sector and sporting top notch sales and earnings growth, DRIV broke out from a 15 month base on surging volume. This is one of the market leaders we want to stick with during this choppy period in the market. Still a buy on this move and then we look for a test to hold and start back up for another entry point.
Volume: 2.219M Avg Volume: 1.071M
BUY POINT: $40.08 Volume=1.4M Target=$48 Stop=$38.11
POSITION: DQI IH - Sept. $40c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/driv.html

Play Date: 03/08/2006
CNQR (Concur Technologies--$15.6; +0.35; optionable): Software to automate corporate expense management
http://biz.yahoo.com/p/c/cnqr.html
After Hours: $15.60
STATUS: Test 50 day EMA. CNQR broke out over a long-term resistance level in early January, moving out of a 16 week flat base as it did. Nice run to 17 and the past three weeks a nice test of the move, landing at the 50 day EMA (15.21). Strong money flow has turned up even as CNQR makes this test. Unlike many stocks and some indices, CNQR held this level. Given its strong fundamentals, not surprising. Looking for a continued volume move off this support to start the play.
Volume: 319.871K Avg Volume: 315.261K
BUY POINT: $16.05 Volume=473K Target=$19.26 Stop=$15.15
POSITION: JCQ HC - Aug. $15c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/cnqr.html

Play Date: 03/08/2006
DIGE (Digene Corp.--$42.01; +0.75; optionable): Diagnostic substances
http://biz.yahoo.com/p/d/dige.html
After Hours: $41.88
STATUS: Cup w/handle. DIGE has used the market selling the past two weeks to work laterally over the 10 day EMA (41.38), forming a handle to a 29 month cup with handle base. It likely has more work to do on the handle, but Wednesday volume spiked higher as DIGE tested the 18 day EMA (40.17) and rebounded for a gain. That is a shakeout followed by buyers ready to move into the stock. Strong fundamentals. Strong stock.
Volume: 532.641K Avg Volume: 284.716K
BUY POINT: $43.65 Volume=427K Target=$51.95 Stop=$40.92
POSITION: QDG FH - June $40c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/dige.html

New buy point on current play:

Play Date: 03/08/2006
BLKB (Blackbaud--$19.21; +0.17; no options): Software for non-profit organizations
http://biz.yahoo.com/p/b/blkb.html
STATUS: Breakout test. BLBK reported strong earnings in mid-February, and after a volatile week broke to the upside, riding the 10 day EMA (18.80). The move took it out of a 13 week double bottom base and sent it to a new all-time high. It has used the past two sessions to work laterally and test that move, all on lower volume. Looks solid for the the next run higher.
Volume: 330.3K Avg Volume: 429.816K
BUY POINT: $19.44 Volume=645K Target=$22.95 Stop=$18.52
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/blkb.html

Play Date: 03/08/2006
NUAN (Nuance Communications--$10.29; +0.17; optionable): Human voice interaction with information systems, etc.
http://biz.yahoo.com/p/n/nuan.html
STATUS: Test 50 day EMA. NUAN has been a nice winner for us since late December. After that run it needed a breather, and the past two weeks it has moved lower on lower volume to test the 18 day EMA (10.04). Wednesday NUAN dove lower, tapping at the 50 day EMA (8.93) on the low and then rallying furiously to recover the 18 day EMA and post a gain. Volume shot higher as buyers rushed back in to scoop it up. Like to see that after this pullback as it shows us the big money is still ready to buy. Looking for a strong move through the 10 day EMA (10.31) to take additional positions.
Volume: 3.577M Avg Volume: 1.986M
BUY POINT: $10.52 Volume=2.1M Target=$12.65 Stop=$9.92
POSITION: SSQ GB - July $10c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/nuan.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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