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Begin part 3 of 3

THE PLAYS

Good movers: AMT; COGO; PFWD; SCSS; STLD; VTS; JBLU

Thursday night play results:
ANN: Fell back to the 50 day EMA on lower volume as the consumer stocks suffered late as oil rose.
AMT: Volume moved back up to average as AMT resumed its breakout move.
ADSK: Nice doji over the 10 day EMA, still setting up the move.
LVLT: Fell back to the 10 day EMA on rising but still below average volume.

New Plays:

Upside:

Play Date: 04/22/2006
BITS (Bitstream--$9.16; +0.41; no options): Font and font technology software
http://biz.yahoo.com/p/b/bits.html
STATUS: Test breakout. This may not be a stock we hold forever, but it is very intriguing, showing excellent action since breaking out from a 14 month base in February. It just formed and broke out from its first base since that move, a 6 week ascending base formed using the 18 day EMA (8.27) as support. Strong volume on that breakout on Monday and then a nice, low volume test. Friday it bounced once more on rising, once again above average volume. Strong 3 to 0 accumulation in the base shows all buying as it set up for the move. Ready to move in as BITS continues higher.
Volume: 319.675K Avg Volume: 195.244K
BUY POINT: $9.35 Volume=293K Target=$11.50 Stop=$8.70
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/bits.html

Play Date: 04/22/2006
CKFR (Checkfree--$54.98; -1.52; optionable): Financial electronic commerce products & services
http://biz.yahoo.com/p/c/ckfr.html
EARNINGS: 4-25-06 after the close
After Hours: $54.97
STATUS: Breakout test. Taking another run at CKFR now that it has shown a strong volume break higher, something lacking as it tried the last move after coming back to test the early April breakout. That move was from a 9 week reverse head and shoulders sporting strong 3 to 0 accumulation. Nice test on lower volume after the strong break higher. May test back a bit more to start the week, but when it comes off this test on strong trade we are ready to move in. Solid leader with solid fundamentals to match its apttern.
Volume: 1.254M Avg Volume: 1.025M
BUY POINT: $55.28 Volume=1.4M Target=$63.90 Stop=$53.48
POSITION: FCQ HK - Aug. $55c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/ckfr.html

Play Date: 04/22/2006
LIFC (Lifecell--$23.17; +0.78; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
After Hours: $23.27
STATUS: Ascending base. LIFC is something of an enigma in the biotech sector, i.e. it has sharply growing sales and revenues, some of the best in the market. It also has a nice 8 month base mostly behind it, ready to break higher and on toward a new all-time high. Strong 9 to 4 accumulation shows plenty of buying as LIFC works up the 50 day EMA (21.59), making higher lows ahead of the breakout move. Earnings are scheduled for Monday morning, and we are looking for a continued move higher to start the play. If we get a gap we will let it test and then start the play with a partial position and then look for the next test after it makes its move from there.
Volume: 807.123K Avg Volume: 738.96K
BUY POINT: $23.42 Volume=1.1M Target=$29.65 Stop=$22.00
POSITION: QKL IX - Sept. $22.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/lifc.html

Play Date: 04/22/2006
SUN (Sunoco--$87.14; +2.34; optionable): Oil and gas refining
http://biz.yahoo.com/p/s/sun.html
After Hours: $87.20
STATUS: Cup w/handle. Another energy stock that shows the pullback and then basing action seen by many energy stocks this year after strong 2005 runs. SUN has set up an 11 week base using the 200 day SMA (75.66) as support. Strong move last week off the 50 day EMA (80.36) and then a lateral move of sorts to form a small handle. Volume jumped Friday as SUN matched the Wednesday high. Plenty of upside as it continues its break higher.
Volume: 2.364M Avg Volume: 2.493M
BUY POINT: $87.55 Volume=3.2M Target=$100.00 Stop=$85.45
POSITION: SUN HQ - Aug. $85c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/sun.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: Tested the Thursday break higher on earnings results. Held the 50 day EMA on the close, a start at making a higher low.

BRCM: Fell through the 50 day EMA on rising trade. Tried to bounce so giving it a bit of air to recover.

CELG: Struggling at the 50 day EMA.

FFIV: True to form it gapped lower on big volume. The move took it below some support at 60. It will likely to try and fill the gap to a certain extent.

MRVL: Fell through the 50 day EMA as well in sympathy with BRCM.

PSYS: Trying to set up a new base but quite volatile.

SUBSCRIBER WATCHLIST

CRI: A leader in the apparel sector. Hit a new high in January with a breakout from a 5.5 month base, and after a run up to 70 it formed another base and is currently trying to make a higher low. Strong stock and we will see how the high dollar oil and gasoline impacts it this week.

EZM: New issue in December 2005, this metals stock has climbed steadily from roughly $1. Quite a run and getting very volatile the past three weeks as volume spikes. That typically indicates a trend is starting to change. EZM needs a base to consolidate and set up the next sustained run. This volatility will likely result in that base.

NYMX: In March NYMX exploded out of a long slumber, running from $2 to $5 in two sessions. It then spent the next 5 weeks fading back on low volume, holding in a very tight, flat consolidation over the 18 day EMA. It is in the Alzheimer business and reported 2005 results and that spurred the run. Hard to gauge this one as the move was a flash in the pan. It is, however, holding onto it for now.

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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