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Begin part 3 of 3

THE PLAYS

Good movers: ALJ; CSH; GME; GRMN; HUM

Monday night play results:
BOT: Still set up to make the bounce off the 50 day EMA
CHIC: Gapped higher but could not hold the move given the downgrades and worries in retail, but still in fine shape.
HELX: Now HLX. Volatile session on low volume as energy was all over the map. Still in the handle.
HURN: Gapped higher, tapped the 50 day EMA on the low and bounced. Still set up well.

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/cd/ecl.html

Play Date: 07/18/2006
NUHC (NU Horizons Electronics--$9.98; -0.08; no options): Semiconductor and passive electronic components for original equipment manufacturers
http://biz.yahoo.com/p/n/nuhc.html
STATUS: Cup w/handle. NUHC rallied higher in early July on strong volume, basically breaking out from a 7 month base. It then tested back the past week on lower volume outside a big volume spike Monday when NUHC tried to jump higher. It faded on that move, but held its ground. Solid 8 to 5 accumulation in the base (8 up price weeks on rising volume to 5 down price weeks on rising volume) shows net buying that sets up the run higher. After that big volume spike Monday, a nice tight doji with tail that tapped the 18 day EMA (9.64) on the low and rebounded to hold the 10 day on the close. Set up very well to move higher. Very solid fundamental growth and just solid as can be in the recent selling, just forming up its base.
Volume: 113.049K Avg Volume: 102.211K
BUY POINT: $10.41 Volume=250K Target=$12.50 Stop=$9.68
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nuhc.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/cd/woof.html

UTSI: Looks ready to make a move.

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 up session on word it is ready to announce a new NANO, etc. It only made it up to the 10 day EMA and showed a doji at that. That does not indicate it is about to break the downtrend.

AKAM: Making a game of it, holding the 50 day EMA after testing lower intraday.

GME: Not bad, moving to the 200 day SMA on stronger volume but still below average. Looking better.

MRVL: Volume picked up as MRVL spiked lower. What a downside move.

NVDA: Upgraded and got some volume on a bounce to the 10 day EMA. First life in quite some time, but not trend changing.

SGMS: Still trying to set a double bottom

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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