stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: VTIV

Wednesday night play results:
CTXS: Holding up well above the 18 day EMA on low volume.
DRIV: Moved up further following the Wednesday break higher.
QCOM: Wow. Gave it all back in one session.
NUAN: Doji at the 18 day EMA.
NVDA: Holding up very well at the 10 day EMA.

New Plays:

Upside:

Play Date: 03/09/2006
LPSN (Liveperson--$5.61; +0.15; no options): Management of online customer interactions
http://biz.yahoo.com/p/l/lpsn.html
STATUS: Cup w/handle. LPSN is in the process of forming the 8 week handle to big 22 month cup with handle base. The handle is something of a double bottom. LPSN announced earnings in early February and fell sharply to near the 50 day EMA (5.46) before rebounding. Another dip lower to start this month but then an upside volume spike Monday and another even stronger one Thursday indicate that LPSN is ready to try an upside move. Strong money flow and solid 3 to 1 accumulation in the handle (3 up price weeks on rising volume to 1 down price weeks on rising volume). Good action in a weak market.
Volume: 357.996K Avg Volume: 230.075K
BUY POINT: $5.85 Volume=345K Target=$7.21 Stop=$5.44
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/lpsn.html

Play Date: 03/09/2006
ORB (Orbital Sciences--$14.89; +0.37; optionable): Aerospace/defense: small rockets for commercial, military, etc. customers.
http://biz.yahoo.com/p/o/orb.html
STATUS: Breakout test. This is one of the right sectors to step into with this market. Receipts when there is war are a surer bet than the general economy. ORB surged higher last week, breaking out of a 6.5 month cup with handle base on tremendous volume as earnings were strong. It has come back this week, fading to the 10 day EMA (14.58) on lower volume. Thursday ORB showed a big doji with tail that reached below the 10 day and rebounded for a gain on sharply higher volume. That looks like the shakeout on the breakout test, setting the next move higher. Strong money flow is leading higher. Looking good.
Volume: 738.7K Avg Volume: 350.933K
BUY POINT: $15.12 Volume=400K Target=$18.21 Stop=$14.41
POSITION: ORB FC - June $15c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/orb.html

Downside:

Play Date: 03/09/2006
SHW (Sherwin-Williams--$44.21; +0.65; optionable): Paints, etc.
http://biz.yahoo.com/p/s/shw.html
After Hours: $44.74
STATUS: Put. SHW was one of the companies involved in the lead paint lawsuits, and it dove lower in late February on word the judge was a hanging judge, ready to paint SHW as the villain. Instead he denied punitive damages and SHW jumped back up. It could not close above the 200 day SMA (45.81), however, and gapped lower once more. After a short lateral move it tested higher Thursday but on very low volume, tapping at the 10 day EMA (44.74) on the high and fading. Looks ready to continue the move lower. A run to the target lands us a 43%ish gain.
Volume: 1.597M Avg Volume: 2.339M
BUY POINT: $43.85 Volume=2.4M Target=$41.65 Stop=$44.75
POSITION: SHW PI - Apr. $45p (-52 delta)
http://www.investmenthouse.com/cd/shw.html

SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.

AAPL, BRCM, CELG, COH, FFIV, GME, MRVL, NVDA, PSYS, UNH

AAPL: Breaking lower below support at 65.

CELG: Got a bit wilder, reaching down to the 18 day EMA on the low but recovering the 10 day EMA and showing a nice doji with tail. Good shakeout.

GME: AT support at 38.

PSYS: Made the kiss of the 50 day EMA and looks ready to turn lower again.

UNH: Right back down to the 200 day SMA after trying to move off it.

Good Investing!
Jon L. Johnson and The Daily Staff

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 of 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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