stock split, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: DJO; GYMB; JOBS; NTRI; RMD; RVI; TWGP

Monday night play results:
ICON: Gapped higher but no volume and could not hold the move
ODFL: Sold through the 18 day EMA on rising trade
TQNT: Took a lower volume breather as it tested the strong Monday move. That is really what we wanted and sets up the continued move better.
TWGP: Nice break higher on strong volume.

New Plays:

Upside:

Play Date: 05/16/2006
LIFC (Lifecell--$28.19; +0.16; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
STATUS: Breakout test. LIFC gapped higher in late April, gapping out of its 8 month ascending base formed along the 50 day EMA (24.51). It surged over 30 and then used the selling the past week to come back and test the 18 day EMA (27.00) on the lows, rebounding to close. Good shakeout action and holding its gains quite nicely. Excellent 10 to 4 accumulation in the base shows plenty of buying. Money flow is strong as well. Relative strength made the breakout with the stock last week, a good sign of LIFC's strength in the weaker market. Looking for volume to kick up as LIFC resumes its move higher.
Volume: 506.94K Avg Volume: 737.102K
BUY POINT: $28.94 Volume=1M Target=$34.95 Stop=$26.91
POSITION: QKL IY - Sept. $27.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/lifc.html

Play Date: 05/16/2006
NTGR (Netgear--$23.30; +0.46; optionable): Telecom networking gear
http://biz.yahoo.com/p/n/ntgr.html
After Hours: $23.28
STATUS: Test breakout. NTGR formed a pretty darn solid 7 month cup with handle that broke higher to start the month, rallying to 25 on the move. During last week's selling it came back to test the move, with the volume coming back as the stock came back to test. NTGR held the 18 day EMA (22.27) on the test, a good near term support level after a breakout. Got some volume Monday and Tuesday as it rebounded. Faded off the high (24.11) Tuesday, but looking solid and ready to move in as it continues on volume. Positive accumulation in the base shows net buying, setting up the breakout and subsequent run. Strong money flow. Looking for that next strong move higher to move in.
Volume: 911.227K Avg Volume: 770.736K
BUY POINT: $23.75 Volume=1.2M Target=$28.50 Stop=$22.55
POSITION: TUD IX - Sept. $22.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/ntgr.html

Play Date: 05/16/2006
RTK (Rentech--$4.85; +0.35; optionable): Coal gasification
http://biz.yahoo.com/p/r/rtk.html
After Hours: $4.85
STATUS: Double bottom w/handle. Volume spiked up the past two sessions as RTK toyed with and then started the breakout Tuesday. Nice run in Q4 2004 and then fell into the current 17 week base sporting solid 4 to 2 accumulation. Strong money flow as well, surging higher ahead of price. Looking to move in as RTK continues higher and through the buy point.
Volume: 2.846M Avg Volume: 1.067M
BUY POINT: $5.04 Volume=1.5M Target=$8.00 Stop=$4.69
POSITION: RTK IA - Sept. $5c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/rtk.html

New buy point on current position:

Play Date: 05/16/2006
GRMN (Garmin Ltd.--$93.27; +1.06; optionable): GPS devices. Splits 2:1 on December 15 if you can believe that.
http://biz.yahoo.com/p/g/grmn.html
After Hours: $92.99
STATUS: Test 18 day EMA. GRMN broke out in early March, moving out of a 5 month base formed along the 50 day EMA (85.13). Gapped higher early in the month on the stock split announcement and now has come back to test the move, filling the gap Monday on the intraday low. It rebounded to hold the 18 day EMA (92.05). Like the fill of the gap and the strong rebound; it shows buyers jumping back in as soon as it dipped. Ready to pick up more shares as GRMN continues higher on a jump in volume.
Volume: 630.82K Avg Volume: 1.229M
BUY POINT: $94.85 Volume=1.4M Target=$110.00 Stop=$91.89
POSITION: GQR JS - Oct. $95c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/grmn.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

Keeps those suggestions coming in. Already have some good candidates so send in your favorites. Need some input as to stocks you want to see to replace BRCM, COH, FFIV, PSYS, UNH

BRCM: Still trying to move off the 200 day SMA as is NASDAQ.

CELG: Volume jumped as it bounced up in the handle. Getting ready.

MRVL: Bombs away.

NVDA: This is where it needs to hold to recover, but it does not look as if it wants to.

UNH: This bounce back up to the 18 day EMA looks done. Stick a fork in it. A tombstone doji at the 18 day EMA on lower, below average volume. Ready to turn back down.

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.

stock split
stock recommendation