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Begin part 3 of 3

THE PLAYS

Good movers: COGO; GYMB; NTRI; SLB; TTEC

Tuesday night play results:
IAG: Faded back on lower trade, still ready to continue the break.
OPLK: Still in the nice test
SLB: Moving higher off the 10 day EMA

New Plays:

Upside:

Play Date: 05/10/2006
CELG (Celgene--$42.88; +0.22; optionable): Biotechnology
http://biz.yahoo.com/p/c/celg.html
After Hours: $42.99
STATUS: Cup w/handle. Made us some nice money in its past runs but needed a rest. It peaked at 44 to end March and then fell into the current 6 week base that used the 50 day EMA (39.62) as support. Positive accumulation and strong money flow complement one another. Volume jumped up to average Wednesday as CELG continued to trade in a narrow range. Looking for strong volume to send it to the breakout.
Volume: 3.626M Avg Volume: 3.498M
BUY POINT: $43.55 Volume=5M Target=$52.00 Stop=$40.88
POSITION: LQH JV - Oct. $42.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/celg.html

Play Date: 05/10/2006
LMIA (LMI Aerospace--$20.15; +2.64; no options): Components for aerospace, defense, technology industries
http://biz.yahoo.com/p/l/lmia.html
After Hours: $20.10
STATUS: Ascending base breakout. Strong earnings jumped LMIA off of its 50 day EMA (16.93), sending it higher to clear the highs in its 17 week base. The base used the 50 day as support, making higher lows as big buyers accumulated shares. Indeed, accumulation in the base is an outstanding 6 to 0 (6 up price weeks on rising volume to 0 down price weeks on rising volume). Relative strength broke out on the move, a good corroboration as LMIA heads to a new all-time high. May be a little soft after this move; big breaks higher often meet with some quick profit taking the next session. Either way (further up or a test) we are looking to take some shares and enjoy the breakout, taking some more when it makes its first test.
Volume: 1.056M Avg Volume: 168.992K
BUY POINT: From Wednesday close: $20.35; Test 19.50ish: 19.75 on the rebound. Volume=200K Target=$24.50 Stop=$18.93
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/lmia.html

Play Date: 05/10/2006
RMIX (U.S. Concrete--$15.49; +0.83; optionable): Cement
http://biz.yahoo.com/p/r/rmix.html
After Hours: $15.34
STATUS: Ascending base breakout. Tight, compact 6 week base that formed over the 50 day EMA (13.62) as RMIX consolidates 5 month run up the 10 and 18 day EMA (14.54 is the 10 day). It didn't take long; it set up making higher lows above the 50 day, showing solid 3 to 1 accumulation and surging money flow. It narrowed its loss and that gave it the breakout strength. Relative strength broke out as well, a good corroboration of RMIX' move to its new all-time high.
Volume: 938.405K Avg Volume: 367.598K
BUY POINT: $15.62 Volume=375K Target=$18.75 Stop=$14.53
POSITION: RQS IC - Sept. $15c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/rmix.html

Continuing play ready to move:

Play Date: 05/03/2006
TQNT (Triquent Semiconductor--$5.63; +0.19; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/t/tqnt.html
STATUS: Test breakout. Getting some volume Wednesday as TQNT moves off the 18 day EMA (5.42). Not bad action in a weak market, and as TQNT continues we are ready to move in. To recap: Made it through a late April rough patch (borrowed that from Greenspan) where it tested a gap higher. Last Wednesday TQNT came off the 18 day EMA on very strong trade. Looks as if TQNT is going to continue the breakout from its 18 week base formed bracketing the 50 day EMA (5.12). Solid 4 to 2 accumulation is complemented by strong money flow. Relative strength broke out Wednesday, a very good indication that the price move is solid. Ready to move in as TQNT continues higher.
Volume: 2.121M Avg Volume: 1.699M
BUY POINT: $5.85 Volume=2.5M Target=$7.25 Stop=$5.40
POSITION: TQN HA - Aug. $5c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/tqnt.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: Reached down to the 18 day EMA (69.42) on the low and rebounded for a modest loss. Again, looking for a break higher on 45M or so volume through 73.

BRCM: Big trouble as it breaks below support at 40 on stronger, average volume. 38 is next potential support but not looking good.

CELG: See above

COH: Ready to dive further.

GME: Fell out of the recent narrow range, landing at 46 that marks the bottom of the 7 week lateral move.

NVDA: Below the 18 day EMA (29.89) on the close on rising, above average volume. Earnings are out Thursday after the close, and there are some jitters as NVDA has already run well. Not a bad time to maybe sell some calls on stock positions.

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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