stock recommendation, stock picking

Begin part 3 of 3

THE PLAYS

Good movers: AH; BRCM; BTUI; CWTR; DBRN; DGIN; MRVL; NTRI; SCSS; STLD; UPL; VTS; WTI

Tuesday night play results:
ADSK: Held steady, taking a breather before moving higher.
CWTR: Nice break higher on continued solid trade.
MRVL: Nice volume move through resistance.
PAYX: Took a moment on lower volume just before the breakout move.

New Plays:

Upside:

Play Date: 04/19/2006
AMT (American Tower--$32.47; +0.68; optionable): Wireless and broadcast communications sites
http://biz.yahoo.com/p/a/amt.html
EARNINGS: 4-26-06
STATUS: Double bottom w/handle. Volume surged Wednesday as AMT broke higher in the handle to its 7 week base that is setting AMT up for a 6 year high. Very nice pattern that formed using the 50 day EMA (30.69) as support, a key level where institutions accumulate shares. They have been doing that as the excellent 4 to 0 accumulation shows (4 up price weeks on rising volume to 0 down price weeks on rising volume). Money flow is surging higher, a good complement to the accumulation. Ready to move in as AMT continues the breakout move. Solid.
Volume: 4.956M Avg Volume: 2.912M
BUY POINT: $32.68 Volume=3M Target=$37.95 Stop=$31.38
POSITION: AMT JT - Oct. $32.50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/amt.html

Play Date: 04/19/2006
EFD (Efunds--$26.87; +0.30; optionable): Electronic payments, risk management, outsourcing
http://biz.yahoo.com/p/e/efd.html
EARNINGS: 5-21-06
STATUS: Test 50 day EMA. EFD broke sharply higher in late February, moving out of a 15 month cup with handle pattern. Strong surge and consolidating the move the past 8 weeks, coming back to form something of a double bottom at the 50 day EMA (25.54). Nice easy test, setting up the next breakout to a new all-time high. Positive accumulation in the test, showing buyers using it to acquire more positions. Solid money flow is leading higher, and looking for EFD to show us the next breakout move higher on strong volume.
Volume: 130.4K Avg Volume: 224.148K
BUY POINT: $27.11 Volume=336K Target=$31.42 Stop=$26.04
POSITION: EFD IE - Sept. $25c (76 delta) &/or Stock
http://www.investmenthouse.com/cd/efd.html

Play Date: 04/19/2006
NANO (Nanometrics--$14.90; -0.08; optionable): Systems used in the manufacture of semiconductors, integrated circuits
http://biz.yahoo.com/p/n/nano.html
EARNINGS: 4-25-06
After Hours: $15.23
STATUS: Cup w/handle. NANO raised its earnings guidance last week and the stock gapped higher on strong volume, coming off the 50 day EMA (13.54) and forming the right side of its 12 week base. It moved laterally the past three sessions, forming the handle, shaking out the near term sellers following the gap higher. May take another couple of sessions to form the handle and show us the breakout move. Excellent 5 to 1 accumulation shows heavy buying. Money flow is surging as well. Going to let it complete the handle and show us the breakout move.
Volume: 224.607K Avg Volume: 110.503K
BUY POINT: $15.38 Volume=166K Target=$18.55 Stop=$14.32
POSITION: QNK IC - Sept. $15c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/nano.html

Play Date: 04/19/2006
TDW (Tidewater--$59.41; +2.21; optionable): Offshore supply vessels and marine support services for offshore energy companies.
http://biz.yahoo.com/p/t/tdw.html
EARNINGS: 5-3-06
After Hours: $59.41
STATUS: Double bottom w/handle breakout. Volume surged Wednesday a s TDW started the breakout from its 12 week base, taking it to an 8 year high. Nice pattern that formed around the 50 day EMA (53.97), using that level as support; that shows institutions using that level to acquire more stocks. Good lateral handle and then the breakout. Looking to move in as TDW continues the breakout. Will start with a partial position and then look to add to it after TDW makes the first test and starts back up on solid trade.
Volume: 2.716M Avg Volume: 1.55M
BUY POINT: $59.72 Volume=1.6M Target=$68.75 Stop=$56.55
POSITION: TDW JL - Oct. $60c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/tdw.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: Up nicely after hours, moving back above the 50 day EMA on its earnings results.

BRCM: Solid rebound through the 50 day EMA ahead of earnings on Thursday. Trying to set up a double bottom.

CELG: May try a break through the 50 day EMA as volume rises while CELG moves up to that level.

COH: Stalled at the 50 day EMA Wednesday.

FFIV: Struggling, trying to get through this resistance level. Showed some rising, above average volume as it moved through the 50 day SMA. Still has the odds against a recovery but if it gets through 68 on volume it has some new life.

MRVL: Nice break above April highs on some volume.

PSYS: Picking up some volume as it moves toward the prior highs at 34.

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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