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Begin part 3 of 3

THE PLAYS

Good movers: FTO; OII; CX; VCLK

Thursday night play results:
FTO: Nice move on nice volume
GME: Started the move through the 200 day but could not hold it to the close.
CX: Diving lower on volume.
ICUI: Nice doji at the 18 day EMA

New Plays:

Upside:

Play Date: 07/15/2006
GLG (Glamis Gold--$37.15; +0.36; optionable): Gold
http://biz.yahoo.com/p/g/glg.html
Earnings: 7-31-06
STATUS: Double bottom w/handle. Familiar pattern in this market with the up and down action, but these are the patterns that form during this type of 'scare them out' market action. It has not moved higher during all of the international intrigue, but it has continued forming its base on low, below average volume. Ignoring the action, working on its pattern. Looking for a volume breakout move to send it on its next run.
Volume: 1.254M Avg Volume: 2.422M
BUY POINT: $38.25 Volume=3M Target=$45.95 Stop=$36.15
POSITION: GLG KG - Nov. $35c (68 delta) &/or Stock
http://www.investmenthouse.com/cd/glg.html

Play Date: 07/15/2006
HNR (Harvest Natural Resources--$14.40; +0.45; optionable): Independent oil and gas
http://biz.yahoo.com/p/h/hnr.html
Earnings: 7-19-06
STATUS: Cup w/handle breakout. Nice high volume break higher Friday as HNR cleared the handle in its 10 week base that consolidated a strong Q1 run. Solid volume is leading higher. Relative strength broke out as well. Excellent action from a nice pattern and we are looking to move in on a continued break higher and then again on a test of that move.
Volume: 634.6K Avg Volume: 386.541K
BUY POINT: $14.57 Volume=395K Target=$17.50 Stop=$13.69
POSITION: HNR LC - Dec. $15c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/hnr.html

Play Date: 07/15/2006
MED (Medifast--$18.42; -0.03; optionable): Nutrition products
http://biz.yahoo.com/p/m/med.html
Earnings: Mid-August
STATUS: Test 18 day EMA. Solid earnings and sales growth pushed MED higher in Q1 and Q2, rallying to 20 on the move. It needed a breather and spent the past 6 weeks moving laterally, consolidating the gains above the 50 day EMA (16.44). A solid bounce off of that support in late June sent it back to 20, and in the market selling this month MED has eased back to the 18 day EMA (18.50) on low, below average volume. Making a higher low at that level with a nice, orderly and tight pullback. That action often leads to the next break higher. A top stock in the market in terms of fundamentals growth and pattern.
Volume: 467.8K Avg Volume: 958.928K
BUY POINT: $19.55 Volume=1.4M Target=$23.50 Stop=$18.18
POSITION: MED LD - Dec. $20c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/med.html

Play Date: 07/15/2006
MHS (Medco Health Solutions--$57.77; -0.03; optionable): Drug stores
http://biz.yahoo.com/p/m/mhs.html
Earnings: 8-4-06
STATUS: Double bottom w/handle. Nice test of the 10 day EMA (57.41) to end the week, showing a doji with tail, i.e. it tested lower and rebounded to close flat. Good action to set up the break higher from its 16 week base, showing positive accumulation. Somewhat defensive, but a strong leader with the ability to post strong gains.
Volume: 1.102M Avg Volume: 2.074M
BUY POINT: $58.65 Volume=3.1M Target=$67.75 Stop=$57.11
POSITION: MHS JK - Oct. $55c (68 delta) &/or Stock
http://www.investmenthouse.com/cd/mhs.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: Another apple once again proving Newton's theory.

AKAM: Has some work to do after the hard drop, but at least it is back up to the 50 day EMA.

CCJ: Its time is almost here. A strong volume break higher this week that clears 41.50 looks good.

CELG: Finally cracked some on high volume. Looking for a further snugging up to the 50 day EMA (43.89) a bit more before rebounding. A hold at that level and a volume bounce is a point to pick up some shares.

SGMS: Looks as if it will fall back toward the 200 day SMA to set up a double bottom.

WM: Nice hold at the 50 day EMA could be the bottom of the right shoulder in a 9 week reverse head and shoulders pattern trying to step up.

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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