us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: GRMN; EZPW; GG

Monday night play results:
AEOS: Nope. Retail had a tough session and AEOS was shot down as well.
BOT: Rallied but stalled at the 10 day and faded as volume remained low
HELX: Now HLX. Volatile session on low volume as energy was all over the map. Still in the handle.
GG: Down hard on strong volume as it followed gold as expected.

New Plays:

Upside:

Play Date: 07/18/2006
ECL (Ecolab--$41.12; +0.67; optionable): Cleaning products, etc.
http://biz.yahoo.com/p/e/ecl.html
Earnings: 7-25-06
STATUS: Test breakout. ECL is hanging in near its all-time high, working laterally the past two weeks above the 18 day EMA (40.15), trying to consolidate the late June break higher from its 14 week cup base. Used the 50 day EMA (39.23) as support for the base, a good sign of institutional support, i.e. the institutions accumulated shares quietly as it tested this level. Positive accumulation and surging money flow. Relative strength broke out Tuesday as ECL moved up to the top of its range on rising, above average volume. Ready to continue the breakout move.
Volume: 1.261M Avg Volume: 808.112K
BUY POINT: $41.39 Volume=1.2M Target=$47.65 Stop=$40.00
POSITION: ECL JH - Oct. $40c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/ecl.html

Play Date: 07/18/2006
MRO (Marathon Oil--$86.20; +1.25; optionable): Oil and gas refining.
http://biz.yahoo.com/p/m/mro.html
Earnings: 8-1-06
After Hours: $86.20
STATUS: Breakout test. Broke out form a double bottom in late June and rallied to near 90 early July. It has spent the past week testing the move, coming back toward the 18 day EMA (83.65) on lower, below average volume. Holding up the breakout, showing a doji over the 10 day EMA Tuesday. Held up well in the market selling, and looking for the rebound to move into positions.
Volume: 3.25M Avg Volume: 3.389M
BUY POINT: $86.65 Volume=4M Target=$99.50 Stop=$84.25
POSITION: MRO JQ - Oct. $85c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/mro.html

Play Date: 07/18/2006
PCAR (Paccar--$78.30; +0.66; optionable): Trucks, etc. Splits 3:2 on 8-11-06
http://biz.yahoo.com/p/p/pcar.html
After Hours: $78.29
STATUS: Test 50 day EMA. Nice move into late June but got caught in the selling and faded from 83 back to the 50 day EMA (77.48) to end last week. Tight doji on the candlestick pattern at that level Monday and starting to bounce Tuesday, but no volume today. Can bounce sharply when it gets moving, and this is an excellent point for PCAR to regroup and rebound given its pre-split status. Using options on this play as we are looking to cop a nice quick pre-split run. A move to the target lands us a 65%ish gain.
Volume: 630.817K Avg Volume: 1.055M
BUY POINT: $79.05 Volume=1M Target=$85.95 Stop=$77.28
POSITION: PAQ KP - Nov. $80c (53 delta)
http://www.investmenthouse.com/ci/pcar.html

Play Date: 07/18/2006
WOOF (VCA Antech--$31.91; +0.35; optionable): Veterinary clinics
http://biz.yahoo.com/p/w/woof.html
Earnings: 7-26-06
STATUS: Cup w/handle. Volume edged higher as WOOF started higher in the handle, moving toward the breakout. Still looks super, set up for the breakout. To recap: When the economy slows you look to what people have to have, and that means, of course, what their pets and farm animals have to have. We spend billions on animals, and not just to eat. WOOF has been shaping up in anticipation, and is not working on a nice, low volume handle to a 10 week base. This leader used the 50 day EMA (30.64) as support as it sets up for a breakout to a new all-time high. Positive accumulation and a relative strength breakout ahead of the price. That isn't any horse hockey. Nice action in a weak market, and WOOF is ready to howl. That is not barking dog.
Volume: 301.012K Avg Volume: 443.436K
BUY POINT: $32.11 Volume=671K Target=$37.50 Stop=$31.00
POSITION: QWF LF - Dec. $30c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/woof.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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