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Begin part 3 of 3

THE PLAYS

Good movers: ACTG; AKAM; BOT; CELG; DADE; EEFT; EYE; GRMN; LMNX

Wednesday night play results:
AKAM: Nice break higher off of the 18 day EMA
BOT: Solid move higher on strong trade
LTD: Bounced higher but still weak below the 50 day EMA.
VCLK: Moved up through the 18 day EMA. Will keep an eye on it.

New Plays:

Upside:

Play Date: 06/29/2006
CAT (Caterpillar--$74.40; +1.69; optionable): Heavy machinery
http://biz.yahoo.com/p/c/cat.html
After Hours: $74.42
STATUS: Reverse head and shoulders. In the sharp market decline and recovery, this pattern and the double bottom are more prevalent. CAT sold off hard to the 200 day SMA (65.86) in early June, recovered, then moved laterally with the market the past week, forming the right shoulder to its 7 week base. Volume jumped up to average Thursday as CAT moved sharply off the 50 day EMA (72.50), just clearing the neckline. Ready to move in as CAT continues this break higher.
Volume: 5.138M Avg Volume: 5.362M
BUY POINT: $74.78 Volume=6M Target=$84.00 Stop=$72.45
POSITION: CAT KO - Nov. $75c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/cat.html

Play Date: 06/29/2006
CNTY (Century Casinos--$11.81; +0.81; no options): Resorts, casinos
http://biz.yahoo.com/p/c/cnty.html
STATUS: Ascending base. CNTY broke out from a 13 week base formed using the 50 day EMA (10.63) as support. Strong 4 to 2 accumulation in the base (4 up price weeks on rising volume to 2 down price weeks on rising volume) shows plenty of buying setting up the breakout move. Huge trade on the move as CNTY jumps to a new all-time high. Relative strength broke out as well, a good indication the move will last. Looking to move in on this move. May give us a bit of a fade Friday after the strong break higher. A bounce off of 11.50ish will be a good entry point.
Volume: 457.171K Avg Volume: 84.42K
BUY POINT: $11.95 Volume=100K Target=$14.35 Stop=$11.11
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/cnty.html

Play Date: 06/29/2006
ECL (Ecolab--$41.14; +1.28; optionable): Cleaners, sanitizers, pool treatment, etc.
http://biz.yahoo.com/p/e/ecl.html
STATUS: Test breakout. ECL gapped higher in early March and fell into its 15 week cup base. It broke higher Tuesday on volume, tested Wednesday, and then continued higher Thursday on more strong volume. Strong 4 to 2 accumulation in the pattern shows plenty of buyers as ECL moved along the 50 day EMA (38.47), using that as support. Nice break higher. Strong money flow complements the nice accumulation. Relative strength breakout as well. Strong earnings and sales growth and continuing the run.
Volume: 1.27M Avg Volume: 687.231K
BUY POINT: $41.32 Volume=690K Target=$49.00 Stop=$39.55
POSITION: ECL JH - Oct. $40c (64 delta) &/or Stock
http://www.investmenthouse.com/cdecl.html

Play Date: 06/29/2006
FSL (Freescale Semiconductor--$29.41; +2.42; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
After Hours: $29.35
STATUS: Double bottom. FSL made us some money on its last run and with the market correction has come back to test the 200 day SMA (26.87) this month, tapping that level twice. Its second tap was Wednesday and then Thursday is bounced sharply on very strong trade. Positive accumulation and surging money flow. A semiconductor leader that looks ready to shoot for a new high once more.
Volume: 5.453M Avg Volume: 2.271M
BUY POINT: $29.65 Volume=2.3M Target=$35.50 Stop=$28.35
POSITION: FSL LF - Dec. $30c (55 delta) &/or Stock
http://www.investmenthouse.com/cdfsl.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

AAPL: Rebounded but after hours there were reports it was caught in the options pricing scandal.

AKAM: Solid break higher.

CCJ: May try a recovery with the metals, but even Thursday its volume was not very good as it rallied up to the 50 day SMA.

CELG: Nice

FLR: Volume moved up to average as FLR started to move out of its short reverse head and shoulders base.

GME: Gapped higher on rising but just average volume. Trying to break to a trend reversal here but needs more volume.

NVDA: Double bottom here at 20 that is acting as support. Strong volume Wednesday and Thursday on the upside sessions. This just got much more interesting. Time to buy back any calls sold against positions.

WM: Breaking higher off the 50 day EMA, but not really convincing volume.

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.

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