stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: ABI; AMT; KFX

Monday night play results:
ININ: Fell to the 50 day EMA but still looking fine.
EW: Tested further, holding the 18 day EMA on the low and rebounding modestly.
RVI: Started lower but bounced back. Still ready to fall.
ACTG: Sold but then rebounded sharply as the buyers stepped back in. Want to see it continue and show us the next break higher after this nice handle.

New Plays:

Upside:

Play Date: 06/06/2006
ICON (Iconix Brand Group--$16.79; -0.17; optionable): Footwear, etc.
http://biz.yahoo.com/p/i/icon.html
STATUS: Double bottom w/handle. A very short pattern has set up over the 50 day EMA (15.97), the past 5 weeks a small double bottom with handle. Sold off to tap the 50 day SMA (16.33) on the Tuesday low and rebounded. Low volume on the lateral move the past few sessions, setting up the next break higher to a new all-time high.
Volume: 336.367K Avg Volume: 521.008K
BUY POINT: $17.42 Volume=782K Target=$20.95 Stop=$16.31
POSITION: QIA KW - Nov. $17.50c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/icon.html

Play Date: 06/06/2006
TYL (Tyler Technologies--$10.99; +0.09; no options): Management software for local governments
http://biz.yahoo.com/p/t/tyl.html
STATUS: Cup. TYL is perched just below an all-time high, forming up an 11 week base roughly at the 50 day EMA (10.55), preparing for the move to that high. Volume started to jump the past two sessions, moving above average and putting in an impressive show Tuesday as TYL bumped its head against the late April and early May flat range that is acting as a lid on this pattern. Looking for a strong break higher to start the play. Positive accumulation and money flow running higher. Looks ready.
Volume: 412.4K Avg Volume: 184.229K
BUY POINT: $11.21 Volume=276K Target=$13.55 Stop=$10.43
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/tyl.html

Play Date: 06/06/2006
VTS (Veritas Drilling--$51.62; +1.81; optionable): Oil and gas service company
http://biz.yahoo.com/p/v/vts.html
After Hours: $52.55
STATUS: Volatile the past 6 weeks, moving up and down in a big range. It surged higher the past week and stalled out some. Gapped lower Tuesday to the 10 day EMA (48.59) and rebounded to post a solid gain on very strong trade. Nice test and rebound. Ready to move in as it continues this move.
Volume: 1.672M Avg Volume: 696.186K
BUY POINT: $52.05 Volume=1M Target=$60.00 Stop=$49.89
POSITION: VTS KJ - Nov. $50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/vts.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, AKAM, CCJ, CELG, FLR, GME, MGPI, MRVL, NVDA, SGMS, WM

CCJ: Down hard to the 50 day EMA after failing to attract any volume as it matched the May high. Not good to see a low volume test of a prior high and then rising volume selling.

CELG: Reached down to the 50 day EMA on the low and then rebounded. Needed to see that.

MGPI: Coming back to test the 50 day EMA.

NVDA: Made it all the way to the 200 day SMA in this sell off. Volume jumped as it rebounded off that level as some institutions supported it.

SUBSCRIBER WATCHLIST

NAT: Shipping. Peaked in early 2005 and trending lower since. It bound bottom in late 2005 and again in March and April. Made a higher low in late May at 30 and is now trying to get through the 200 day SMA that put a lid on the upside moves the past 9 months. Turned back from that level Tuesday after a doji Monday on no volume right at that resistance. Might improve but needs to clear the 200 day SMA on strong volume then successfully test that move to prove it has changed its downside stripes.

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 recommendation
stock option