stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: ADM; ARNA; CYBS; PSSI; RACK; RNVS; OXPS

Thursday night play results:
LPSN: Tried to extend off the 50 day EMA but volume caved.
ORB: No volume either as ORB gapped higher but could not make the move.
SHW: Moved up to the 10 day EMA on low volume. Getting ready to fall.

New Plays:

Upside:

Play Date: 03/13/2006
ADAM (A.D.A.M., Inc.--$10.42; +0.85; no options): Interactive healthcare information
http://biz.yahoo.com/p/a/adam.html
After Hours: $10.85
STATUS: Test 50 day EMA. ADAM made us some nice money on its last run, and after that move it came back to the 50 day EMA (9.52) and reset for the next leg. Nice low volume test followed by a high volume bounce. Money flow is screaming higher and we are ready to move in as ADAM once more follows it to the upside.
Volume: 512.783K Avg Volume: 183.974K
BUY POINT: $10.57 Volume=250K Target=$12.75 Stop=$9.83
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/adam.html

Play Date: 03/13/2006
AH (Armor Holdings--$56.50; -0.43; optionable): Body armor and vehicle armor
http://biz.yahoo.com/p/a/ah.html
STATUS: Test 18 day EMA. A steady supplier to the US war and security efforts with top notch fundamentals to match its technical pattern. AH broke higher out of a long, 13 month base to start February. It enjoyed a 2 year run up to that base and it needed the consolidation. It broke higher in February and surged as sales continued to grow. It is making its second serious test of the break higher, holding above the 18 day EMA (55.53) the past three weeks as AH eases back on lower, below average volume to test the last run higher. During this pullback money flow has remained strong. The low volume shows no big holders want to give it up. Looks ready to resume the breakout move after taking the pit stop to catch its breath.
Volume: 413.3K Avg Volume: 579.305K
BUY POINT: $57.55 Volume=750K Target=$68 Stop=$55.28
POSITION: AH HK - Aug. $55c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/ah.html

Play Date: 03/13/2006
SCMR (Sycamore Networks--$4.94; +0.17; optionable): PC networking and communication
http://biz.yahoo.com/p/s/scmr.html
After Hours: $4.98
STATUS: Ascending triangle. Volume jumped Monday as SCMR broke higher off the 50 day EMA (4.70) in its 13 week base. The base formed using the 50 day EMA as support as it made higher and higher lows. Excellent 5 to 1 in the current base (5 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying setting up a breakout. This base follows a much longer 24 month base that worked to remove much of the overhead supply. This current pattern is the one that is setting up a breakout and better run.
Volume: 4.089M Avg Volume: 2.398M
BUY POINT: $5.12 Volume=3M Target=$6.38 Stop=$4.76
POSITION: SMZ IA - Sept. $5c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/scmr.html

Play Date: 03/13/2006
YMI (YM Biosciences--$5.77; +0.11; optionable): Drugs
http://biz.yahoo.com/p/y/ymi.html
STATUS: Ascending triangle. A new issue in October 2004, YMI has come to life this year for the first time. Strong break higher in February, and the current 5 week pattern is working to consolidate that move and springboard YMI to the next leg higher. Higher and higher lows along the 10 day EMA (5.50) with a constant top near 5.85 is building pressure from below for the breakout and continued run. Strong money flow and a relative strength breakout as well. Volume jumped well above average Monday, and we are looking for YMI to deliver the breakout.
Volume: 575.3K Avg Volume: 315.279K
BUY POINT: $5.96 Volume=475K Target=$7.55 Stop=$5.54
POSITION: YMI GA - July $5c (78 delta) &/or Stock
http://www.investmenthouse.com/cd/ymi.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: An upgrade gapped it up and to the 10 day EMA (66.27), but volume was below average and likely not to push it higher.

BRCM: Doji at 44 as it tries to hang on and bounce. Not much strength yet.

CELG: Nice lateral move on low volume and in a tight range is setting up the next move.

FFIV: Nice move off the 18 day EMA on rising volume.

NVDA: Nice lower volume doji at the 18 day EMA.

SUBSCRIBER WATCHLIST:

PLCM: Breaking out of its second base after the 2002 low. Showing some good volume the past two sessions.

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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