us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: Not many

Wednesday night play results:
CEO: Faded on lower volume, but not bad for the market.
ITG: Faded on low volume, still ready to move
NGA: Strong volume as it surged but showed a doji to finish the day
WYNN: Faded from the 50 day EMA. Watching but needs to show something
VLO: Still working on the handle

New Plays:

Upside:

Play Date: 07/20/2006
HOLX (Hologic--$44.78; -1.57; optionable): Medical appliances
http://biz.yahoo.com/p/h/holx.html
Earnings: 7-25-06 before the open
STATUS: Reverse head and shoulders. Working on the right shoulder to a 12 week base, using the 50 day EMA (44.72) as support. Volume was up Wednesday as HOLX started the move off the 50 day, but it was up again Thursday as it plunked right back down to that level. Looking for HOLX to hold in this range as it has the past week and then resume the move higher. Plenty of upside here even without breaking the April high near 56. Exploded higher in mid-June on Medicare funding of mammograms. This move has tested, holding a good chunk of that gain and setting up for the next move.
Volume: 1.397M Avg Volume: 1.123M
BUY POINT: $46.45 Volume=1.7M Target=$55.00 Stop=$43.65
POSITION: QHX LI - Dec. $45c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/holx.html

Play Date: 07/20/2006
HWAY (Healthways--$51.88; -1.47; optionable): Health management services for health plans, Medicare and Medicaid, hospitals
Earnings: Announced 6-26-06
http://biz.yahoo.com/p/h/hway.html
STATUS: Ascending base. Nice 16 week pattern has formed using the 50 day EMA (50.64) as its primary support. The past 7 weeks it has really shaped up, making a higher low this past week at the 50 day EMA and bouncing smartly, showing strong above average volume Wednesday. It tried to extend today but the market pullback caught it and sent it back to the 10 day EMA (51.80) on the close. Solid 3 to 1 accumulation the past 7 weeks (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying to send HWAY to a new all-time high.
Volume: 441.32K Avg Volume: 331.053K
BUY POINT: $54.05 Volume=497K Target=$61.95 Stop=$51.60
POSITION: QMH KK - Nov. $55c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/hway.html

Downside:

Play Date: 07/20/2006
MAN (Manpower--$59.42; -2.41; optionable): Staffing and outsourcing
http://biz.yahoo.com/p/m/man.html
STATUS: Put. Diving lower on strong volume after bouncing up to test the 50 day EMA this week. It peaked in early May and formed a broad top. It tried to hold the gap up point from mid-April but it is falling now on rising volume. It is ready to fill that gap. A move to the target lands us a 41%ish gain.
Volume: 1.688M Avg Volume: 1.06M
BUY POINT: $59.35 Volume=1.1M Target=$56.75 Stop=$59.85
POSITION: MAN UL - Sept. $60p (-49 delta)
http://www.investmenthouse.com/ci/man.html

Play Date: 07/20/2006
TEX (Terex--$42.70; -2.41; optionable): Huge earth moving machines
http://biz.yahoo.com/p/t/tex.html
Earnings: 7-27-06
STATUS: Put. Broad double top in May and then July, diving lower last week to some support at 42. Bounced back up to the 50 day EMA (45) this week on lower volume and then rolled over Thursday. Looking for a move down to some support at 40, but if it continues lower to the June low near 38, no problem. A move to our initial target lands a 40%ish gain.
Volume: 1.542M Avg Volume: 1.898M
BUY POINT: $42.54 Volume=1.9M Target=$40.00 Stop=$43.05
POSITION: TEX TV - Aug. $42.50p (-46 delta)
http://www.investmenthouse.com/ci/tex.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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