us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: CONR; FRK; NVTL; CWTR; RTI; SMH

Monday night play results:
DBRN: Tried to move higher again but backed off as the market sold. Held up remarkably well.
ILMN: Testing back further on low volume, forming a handle.
OPNT: Still testing the strong move.
TSAI: Holding the 18 day EMA and a solid pattern in a weak market.

New Plays:

Upside:

Play Date: 06/27/2006
CLHB (Clean Harbors--$38.32; -0.93; optionable): Waste management
http://biz.yahoo.com/p/c/clhb.html
STATUS: Breakout test. CLHB is moving laterally above the 10 day EMA (38.38), making the second test of near support after the strong break higher in early May. That move took it out of a 6.5 month base. Using the market selling to test and set up the next move in the breakout run. Stocks tend to make 4 to 5 runs off the near support after a breakout, leaving plenty of room for CLHB to move higher from here. Solid fundamentals to go with its strong pattern. Great money flow. Relative strength has broken out and is holding up.
Volume: 236.06K Avg Volume: 268.366K
BUY POINT: $39.35 Volume=400K Target=$46.95 Stop=$37.65
POSITION: QPB JH - Oct. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/clhb.html

Play Date: 06/27/2006
MRO (Marathon Oil--$79.81; +2.93; optionable): Oil and gas marketing and refining.
http://biz.yahoo.com/p/m/mro.html
STATUS: Double bottom breakout. MRO surged past the 'hump' in its 9 week base (79.76) Tuesday, moving higher on strong volume, the strongest in a month. Nice pattern that set up using the 200 day SMA (69.88) as support for the second leg. Relative strength is ready for a breakout well ahead of price, and that is a bullish indication for the stock to head higher.
Volume: 5.245M Avg Volume: 3.232M
BUY POINT: $80.35 Volume=3.4M Target=$95.00 Stop=$77.22
POSITION: MRO JP - Oct. $80c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/mro.html

Downside:

Play Date: 06/27/2006
IWV (Russell 3000 Index ETF--$71.70; -0.77; optionable)
http://biz.yahoo.com/p/i/iwv.html
STATUS: Put. Turned lower at the 18 day EMA (72.59) Monday on huge volume and looks to be starting the third leg lower in its downtrend that started in early May. The drops have run 4 points each, so our target is rather conservative. If it is falling hard at that point we will let it continue lower though will likely take some interim gain. A move to the target lands us a 49%ish gain.
Volume: 2.055M Avg Volume: 223.248K
BUY POINT: $71.55 Volume=335K Target=$69.80 Stop=$72.04
POSITION: ILV TT - Aug. $72p (-49 delta)
http://www.investmenthouse.com/ci/iwv.html

Play Date: 06/27/2006
NVS (Novartis--$52.06; -0.80; optionable): Drugs
http://biz.yahoo.com/p/n/nvs.html
After Hours: $52.97
STATUS: Put. NVS formed a broad top April to early June and then broke lower below the 50 day EMA (54.60) and then the 200 day SMA (54.12) in one big dive lower. It held 52 as support and bounced up to 53, a resistance point it gapped below on the way down. It faltered there and dropped back to 52 Tuesday on very strong, above average volume. Looks ready to resume the move lower. A drop to the target lands us a 40%ish gain. It fell 4 points on the first move so if it is tanking on this drop we will let some of the positions continue to run.
Volume: 1.844M Avg Volume: 1.178M
BUY POINT: $51.88 Volume=1.2M Target=$49.85 Stop=$52.31
POSITION: NVS TK - Aug. $55p (-72 delta)
http://www.investmenthouse.com/ci/nvs.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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