stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: AMX; ANN; COGO; CTXS; CX; HELX; RHAT; TESOF; TTMI; WEBM; WFR

Weekend play results:
HELX: Nice continued break higher.
LUK: Broke higher on light trade. Now the volume needs to kick in.
ORBK: Nice move higher on volume.
SPSS: Still in the nice test of the breakout.
BLKB: Tried to make the move but volume failed and it fell back to the 10 day EMA.
MCHP: Doji at the 10 day EMA. Still ready to make its move.
SPIL: Still looking for some volume.

New Plays:

Upside:

Play Date: 05/08/2006
IDTI (Integrated Device Tech--$15.66; -0.20; optionable): Semiconductor
http://biz.yahoo.com/p/i/idti.html
After Hours: $15.90
STATUS: Breakout test. IDTI is moving laterally the past four weeks, forming a flat consolidation of its early April breakout from a 4 week double bottom. Excellent 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying. Volume has kicked up the past three sessions, moving back above average as IDTI holds the 18 day EMA (15.48), making a higher low to springboard it to the breakout. Strong money flow. Holding up after hours after the Dell news.
Volume: 4.138M Avg Volume: 2.981M
BUY POINT: $16.35 Volume=4.5M Target=$19.65 Stop=$15.38
POSITION: ITQ HC - Aug. $15c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/idti.html

Play Date: 05/08/2006
KGC (Kinrose Gold--$12.12; -0.16; optionable): Gold
http://biz.yahoo.com/p/k/kgc.html
STATUS: Test breakout. KGC broke out from a 10 week cup with handel base in mid-April and rallied up to 12.92, using the 10 day EMA (12.21) as support. It faded the past week, testing that solid move, coming back to tap the 18 day EMA (11.91) on the Monday low. Volume has faded as it makes the test, showing few sellers, just profit taking after the run. Solid 4 to 2 accumulation (4 up price weeks on rising volume to 2 down price weeks on rising volume) shows plenty of buying to make the breakout and keep it moving afterwards. Nice doji at the 18 day EMA shows it is ready to resume the move.
Volume: 1.723M Avg Volume: 2.065M
BUY POINT: $12.32 Volume=2.5M Target=$14.85 Stop=$11.68
POSITION: KGC HV - Aug. $12.50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/kgc.html

Play Date: 05/08/2006
ORCC (Online Resources--$13.89; +0.52; no options): Outsourced/internet financial tech servics
http://biz.yahoo.com/p/o/orcc.html
After Hours: $13.89
STATUS: Ascending base. ORCC announced the acquisition of Princeton eCom, one of the unheralded acquisitions of the day, but It was liked by the street. ORCC jumped sharply on strong volume, moving to the highs in the 14 week pattern. Strong 6 to 1 money flow shows nearly all buying in the base that formed using the 50 day EMA (13.02) as support. Money flow is surging. Ready to move to a 6 year high.
Volume: 507.155K Avg Volume: 178.56K
BUY POINT: $14.05 Volume=250K Target=$16.95 Stop=$13.18
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/orcc.html

Play Date: 05/08/2006
PDE (Pride International--$36.19; -0.29; optionable): Oil and gas drilling and equipment
http://biz.yahoo.com/p/p/pde.html
STATUS: Cup w/handle. Working on the handle to a 14 week base that formed using the 200 day SMA (30.08) on the pattern lows, showing institutional support. Solid 4 to 1 accumulation shows plenty of buying to give a breakout move a foundation to rally off of. Being patient, letting it complete the lateral move and show us the breakout.
Volume: 2.054M Avg Volume: 2.215M
BUY POINT: $37.05 Volume=2.8M Target=$43.00 Stop=$35.05
POSITION: PDE JG - Oct. $35c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/pde.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: Gapped higher on a UK ruling that Apple did not infringe upon the Beatles label. In the end the stock finished flat, but still holding the move over the April high.

BRCM: Still moving laterally below the 10 day EMA and above support at 40. Was down after hours on the DELL news

CELG;; Lower volume modest move. Could use a 3 to 4 day lateral move to set up a really strong base.

PSYS: Looks as if it is going down for the third time.

UNH: This is getting comical. What a swoon.

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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