us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: ALTR; CWTR; NVTL; OXY

Monday night play results:
EXC: Stronger volume but could not hold the move. Still solid.
BBY: Jumped higher on strong TV sales but could not move through the 18 day EMA.
RJF: Bombs away. Big drop on strong volume.
X: Heading lower on strong volume.

New Plays: Already oversold and looking for a bounce

Upside:

Play Date: 06/13/2006
DIOD (Diodes--$38.39; +4.94; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/d/diod.html
After Hours: $38.35
STATUS: Double bottom. Surged higher Tuesday on strong volume, coming off a second test of the 200 day SMA (32.45) after increasing second quarter outlook. This 7 week base consolidates the strong December to April run. Solid 3 to 1 accumulation in the pattern (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying as it tests key support and then jumps higher. Big move Tuesday, but ready to step in with some positions on a continued move higher as the market is ready for a rebound and this looks like an early leader.
Volume: 1.06M Avg Volume: 327.526K
BUY POINT: $38.72 Volume=450K Target=$46.45 Stop=$36.77
POSITION: DUH LH - Dec. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/diod.html

Play Date: 06/13/2006
PRFT (Perficient--$12.55; -0.41; no options): Software for e-business solutions
http://biz.yahoo.com/p/p/prft.html
STATUS: Test 50 day EMA. A top stock in the market is making a test of the 50 day EMA (12.58) after a strong run January to May. In the market selling it could not hold up, but it did not destroy its pattern. As the market looks ready to bounce after a bit more selling and PRFT held up well, we are looking to move into this strong stock as it makes a rebound. Lots of momentum to give us a fast return as it recovers.
Volume: 372.498K Avg Volume: 212.002K
BUY POINT: $13.11 Volume=318K Target=$15.75 Stop=$12.55
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/prft.html

Play Date: 06/13/2006
SIE (Sierra Health Services--$43.00; +0.89; optionable): Health care plans
http://biz.yahoo.com/p/s/sie.html
STATUS: Breakout test. Double bottomed in May and rallied to 42. It broke higher from there a week back, moving out of a 14 week base and running to a new all-time high. Nice lower volume test of that move the past week, holding near support at the 10 day EMA (42.27). Bounced off of that level Tuesday as the market sold, a good indication of strength. No volume, however, so looking for that to come in as it moves higher. Just very nice looking.
Volume: 614.9K Avg Volume: 639.642K
BUY POINT: $43.88 Volume=800K Target=$52.00 Stop=$41.45
POSITION: SIE LH - Dec. $40c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/sie.html

Play Date: 06/13/2006
WCG (Wellcare Health Plans--$49.48; +1.18; optionable): Another health care plan
http://biz.yahoo.com/p/w/wcg.html
STATUS: Breakout test. WCG broke higher from a 5.5 month ascending base in mid-May and rallied to 50. It sold off to the 200 day SMA (40.42) ahead of the market and then started this move. It has moved mostly laterally the past four weeks, bumping up against 50 as the 18 day EMA (48.11) rose to meet it. Volume surged Tuesday as WCG came off of the 18 day, tapping the top of the consolidation range on the high. Strong money flow is leading higher. Relative strength is breaking out ahead of the price, a very bullish indication. Top stock and looks ready to continue the run.
Volume: 1.012M Avg Volume: 522.858K
BUY POINT: $50.55 Volume=784K Target=$60.50 Stop=$47.89
POSITION: WCG LJ - Dec. $50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/wcg.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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