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Begin part 3 of 3

THE PLAYS

Good movers: LSTR; NWRE; RACK; TWGP; TALX

Weekend play results:
ARRS: Took the day off on lower, below average volume.
NWRE: Nice move off the 10 day EMA.
TWGP: Strong volume, strong move
ZGEN: Still working on the nice handle.
TALX: Dove lower on stronger volume.

New Plays:

Upside:

Play Date: 03/20/2006
GME (Gamestop--$41.40; +0.30; optionable): Electronic game stores
http://biz.yahoo.com/p/g/gme.html
After Hours: $41.90
STATUS: Test 50 day EMA. GME has set up again so taking another look at this leader. Was basing at some support at 40 through early March but then got a case of the dips and crashed below the 50 day EMA (39.26). It was a short sting at that level as GME recovered that support three sessions later on some solid volume. It has drifted up the 10 day EMA (40.28) since, heading back to another showdown with some resistance at 42. Looking for volume jump as it moves through that level. Solid 3 to 1 accumulation in this 7 week consolidation. A market leader and it looks ready to show us a leader-type break higher.
Volume: 684.7K Avg Volume: 1.222M
BUY POINT: $42.11 Volume=2M Target=$49.95 Stop=$39.65
POSITION: GME GH - July $40c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/gme.html

Play Date: 03/20/2006
SCSS (Select Comfort--$36.49; -0.02; optionable): Air beds
http://biz.yahoo.com/p/s/scss.html
After Hours: $36.36
STATUS: Ascending base. We played SCSS quite a bit in 2002 when much of the market was in the tank. People were apparently buying beds, however, and SCSS enjoyed a huge run. It then based for over 2 years, exhausted from the run. It needed one of its own beds. It woke up to start February with a gap higher and run from 28 to 37. It stalled there, needing another good comfortable rest. It has formed the current 6 week base, moving laterally over the 18 day EMA (35.71). Strong money flow is leading higher. Volume has dropped off below average the past two weeks. Looking for some stronger trade as SCSS jumps out of bed again and moves through near resistance.
Volume: 505.195K Avg Volume: 686.851K
BUY POINT: $37.48 Volume=1M Target=$43.75 Stop=$35.48
POSITION: QSL IG - Sept. $35c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/scss.html

Play Date: 03/20/2006
CRME (Cardiome Pharma--$12.57; -0.12; no options): Drug manufacturers
http://biz.yahoo.com/p/c/crme.html
STATUS: Cup w/handle. CRME is 2.5 years old and is setting up for a breakout to a new all-time high. It used the 50 day EMA (11.78) as support for this current 7 week base and has faded to the 18 day EMA (12.37) the past week on low, low volume. The quiet before the storm, setting up the breakout to that new all-time high. Money flow is surging higher even as the price moves laterally and slightly lower. Watching for price to follow it on volume this week.
Volume: 43.728K Avg Volume: 294.192K
BUY POINT: $13.11 Volume=441K Target=$15.75 Stop=$12.32
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/crme.html

Current play ready to move:

Play Date: 03/16/2006
TKC (Turkcell--$18.31; +0.03; optionable): Turkish wireless telecom
http://biz.yahoo.com/p/t/tkc.html
STATUS: Test 50 day EMA. Nice lateral move the past two sessions, showing nice dojis over the 10 day EMA (18.02), reaching down to that level and rebounding intraday. Volume surged Monday (very low on the Friday expiration) as it showed that doji; that indicates a strong surge of buying volume. Looks ready to make its move. To recap: TKC broke out in late December from a 12 month base. The stock then rallied up the 10 and 18 day EMA through February. It needed a rest after that run and it has come back to the 50 day EMA (17.37) the past three weeks, hitting that level two weeks back and moving laterally. Volume started to spike Tuesday, and it was up again Thursday as TKC made the move through the short term moving averages. A strong stock will breakout, run up the short term moving averages, then test the 50 day EMA. If it is still going to run it will show strong volume off the 50 day. TKC is doing just that. Looking to start some positions on a continued move.
Volume: 547.2K Avg Volume: 338.308K
BUY POINT: $18.68 Volume=365K Target=$22.45 Stop=$17.62
POSITION: TKC GW - July $17.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/tkc.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

CELG: Gapped higher once more, showing a doji on the session. Still letting it run here.

COH: Holding the 50 day EMA. Needs to make a stand here.

FFIV: Nice break higher.

NVDA: Lower volume pause. Still looking for that volume to ramp as it starts higher.

PSYS: Trying to hold the 50 day EMA after recovering that level Thursday on stronger volume. We will see; lots of overhead supply from late January through February

SUBSCRIBER WATCHLIST:

ISSX: It has been a long time since ISSX put together a sizeable uptrend, but it is trying to do so now. It has formed a 16 month ascending triangle, the past 5 months a cup with handle. Monday volume jumped back above average as ISSX broke out from that base. That puts it close to the late 2002 high. Gapped higher Monday but closed well off the high; kind of a tentative move. A further solid move over 25 is worth a buy if you are looking for a software stock.

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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