us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: GRMN; SYKE; VARI; WEBX

Tuesday night play results:
GLBL: Faded back to the 18 day EMA on lower volume
HWAY: Above average volume as HWAY probed toward a breakout
LFUS: Nice test of the 50 day EMA and rebound. Still set to go.
CELL: Tanked but recovered to the 10 day EMA. Still looks ready to fall
ZEUS: Very volatile but still below the 50 day EMA.

New Plays:

Upside:

Play Date: 05/24/2006
RNT (Aaron Rents--$27.51; +0.25; no options): Rental & leasing services
http://biz.yahoo.com/p/r/rnt.html
STATUS: Test breakout. Broke out from a 8 month cup with handle base in February and rallied up the 18 day EMA (now at 26.82). It topped in late April and fell below the 50 day EMA (26.48) but rebounded last week on strong volume, making a new breakout, or really continuing the prior breakout run. After that Friday blast higher RNT faded back this week to test the 18 day EMA Wednesday and rebounding for a gain on stronger volume. Relative strength broke out on the move, a very good indication for the continued move higher. Strong money flow is leading higher and after this test RNT is ready to follow it once more.
Volume: 562.9K Avg Volume: 265K
BUY POINT: $28.35 Volume=398K Target=$34.00 Stop=$26.37
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/rnt.html

Play Date: 05/24/2006
SMDI (Sirenza Microdevices--$11.90; +0.21; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/s/smdi.html
STATUS: Test 18 day EMA. SMDI is a strong leader, making another strong break higher to start May. It rallied a bit further over 13 and then came back to test during the market, selling, coming back on low volume to test and hold the 18 day EMA (11.52). Nice hold of the breakout during all of the selling, setting up for the next move.
Volume: 561.37K Avg Volume: 451.514K
BUY POINT: $12.55 Volume=677K Target=$15.12 Stop=$11.38
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/smdi.html

Play Date: 05/24/2006
SMSI (Smith Micro Software--$12.71; +0.32; no options): Application software
http://biz.yahoo.com/p/s/smsi.html
STATUS: Test 50 day EMA. SMSI has moved laterally the past 8 weeks during the market selling, moving in a range from 11 to 13.50 as the 50 day EMA (11.65) rises to meet it. Excellent 16 month cup with handle breakout in late May sent it higher and now it is consolidating that breakout. Excellent strength in this stock along with solid fundamentals growth. Tried the move Wednesday but faded as volume faded below average. Still looks ready to continue the break, just want to see more volume.
Volume: 438.377K Avg Volume: 476.302K
BUY POINT: $13.55 Volume=714K Target=$16.30 Stop=$12.57
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/smsi.html

Continuing ready to move:

Play Date: 05/20/2006
CTXS (Citrix Systems--$39.05; +0.05; optionable): On demand information access software, etc.
http://biz.yahoo.com/p/c/ctxs.html
STATUS: Test 50 day EMA. Still testing the 50 day EMA (38.66), showing a nice tight doji at that level Wednesday as volume jumped back up above average. Excellent test, and looking for the rebound through the 18 day EMA (40.27). To recap: CTXS made us some great coin this year, after the strong run up through early May it needed a breather. The market selling came along and pushed it back to the 50 day EMA. We said we were going to let it make the test and then move back in. It looks to have done that, undercutting the 50 day EMA intraday the past few sessions and then rebounding for a positive close. A strong market leader this one, and we are looking for CTXS to make us some more scratch as it rebounds off the 50 day.
Volume: 3.082M Avg Volume: 2.674M
BUY POINT: New: $40.42 (orig. $40.88) Volume=4M Target=$49.00 Stop=$38.55
POSITION: XSQ IH - Sept. $40c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/ctxs.html

Play Date: 05/17/2006
FSL (Freescale Semiconductor--$30.09; +0.13; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
STATUS: Test 50 day EMA. Still testing the 50 day EMA (29.66) with volume rising up to average Wednesday as FSL tested below that level and rebounded for a positive close. It has filled the gap and looks ready to move through the 18 day EMA (30.44) and give us the buy point. To recap: This is Motorola's semiconductor spin-off, and in its 2 years has moved steadily higher. It broke out from a 5 month flat base in mid-April, surging on strong volume on strong earnings. After peaking on that run in early May at 33, it started to test, holding the 18 day EMA originally, but then fell lower last week, coming to the 50 day EMA. It has moved laterally above the 50 day the past four sessions with volume jumping back up last Wednesday. That volume has continued and looking for that to send FSL higher off of this test.
Volume: 2.159M Avg Volume: 2.116M
BUY POINT: New: $30.57 (orig. $30.95) Volume=2.5M Target=$37.00 Stop=$29.48
POSITION: FSL IF - Sept. $30c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/fsl.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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