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Begin part 3 of 3

THE PLAYS

Good movers: ANN; AMX; CX; ENER; GG; GLG; NTRI; PLLL; RIO; SLB; VTS

Monday night play results:
CELG: Hmm. Peeled back in a further test of the Thursday break higher.
HLTH: Still ready to break higher.
OIS: Broke higher but no volume.
QGEN: Held steady on lower volume.
MHP: Reached lower then rebounded to hold steady.

New Plays:

Upside:

Play Date: 05/02/2006
BID (Sothebys--$31.32; +0.54; optionable): Auctions
http://biz.yahoo.com/p/b/bid.html
STATUS: Test breakout. BID is moving in a 5 week ascending base along the 18 day EMA (29.65), consolidating the early March breakout and run higher. Strong break higher in early March on strong earnings. It worked laterally on low volume the last part of April and then jumped higher this week, ready to resume the breakout run. Money flow is leading higher, complementing the strong 3 to 0 accumulation in the base (3 up price weeks on rising volume to 0 down price weeks on rising volume). Ready to move in as BID continues to get bid higher and relative strength makes the breakout as well.
Volume: 1.296M Avg Volume: 762.427K
BUY POINT: $31.65 Volume=850K Target=$37.98 Stop=$30.05
POSITION: BID JF - Oct. $30c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/bid.html

Play Date: 05/02/2006
DO (Diamond Offshore--$96.15; +4.28; optionable): Oil and gas offshore drilling
http://biz.yahoo.com/p/d/do.html
After Hours: $96.15
STATUS: Test breakout. Go ahead and downgrade the group and see how well they move. DO moved sharply higher Tuesday on a shot of strong, above average volume. The move started to break it out of its 4 week lateral consolidation that tested the late March move from its 9 week base. Strong market leader, and looking to move in as it continues higher.
Volume: 2.934M Avg Volume: 2.748M
BUY POINT: $96.55 Volume=2.8M Target=$109.95 Stop=$92.00
POSITION: DO IS - Sept. $95c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/do.html

Play Date: 05/02/2006
POT (Potash--$100.44; +5.45; optionable): Fertilizer, feed products
http://biz.yahoo.com/p/p/pot.html
STATUS: Reverse head and shoulders. Strong volume Tuesday as POT breaks higher, clearing a nicely formed 12 week base that was part of a larger 8 month pattern. Strong volume the past week as POT set up the move, and solid as it broke higher Tuesday. Excellent 4 to 1 accumulation is setting the stage for the move, with money flow shooting higher. Ready to move in as POT continues higher.
Volume: 1.509M Avg Volume: 913.782K
BUY POINT: $101.12 Volume=1M Target=$117.50 Stop=$97.32
POSITION: POT IT - Sept. $100c (60 delta)
http://www.investmenthouse.com/ci/pot.html

Play Date: 05/02/2006
WEBM (Webmethods--$9.61; +0.20; optionable): Business integration software
http://biz.yahoo.com/p/w/webm.html
STATUS: Breakout test. Broke higher in early April out of an 11 week base. It rallied to near 10 on the break higher and then formed the current three week lateral consolidation, holding above the 18 day EMA (9.17) on the lows. Strong trade as it reported earnings to end April. Ready to break higher and follow the strong money flow higher.
Volume: 1.292M Avg Volume: 750.287K
BUY POINT: $9.78 Volume=1.1M Target=$11.85 Stop=$9.11
POSITION: UUW JB - Oct. $10c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/webm.html

Downside:

Play Date: 05/02/2006
AB (Alliance Bernstein Holding--$65.13; -1.22; optionable): Asset Management
http://biz.yahoo.com/p/a/ab.html
STATUS: Double top. AB peaked in mid-April and rolled sharply lower to end the month, falling through the 50 day EMA (66.13) Friday on strong trade. It rebounded Monday to the 50 day EMA as volume backed off and then fell again Tuesday as trade picked back up. Money flow is heading lower and AB has been under distribution the past week. Looking to move in as it continues lower. A move to the target lands us a 44%ish gain.
Volume: 332.9K Avg Volume: 203.203K
BUY POINT: $64.92 Volume=235K Target=$62.88 Stop=$65.45
POSITION: AB RM - June $65p (-48 delta)
http://www.investmenthouse.com/ci/ab.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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 in 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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