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Begin part 3 of 3

THE PLAYS

Good Movers: AGN; FTO; VARI; XPRSA

Wednesday night play results:
CERN: Another low volume test.
NVDA: Nice test of the 10 day EMA and a rebound. Still looking to break higher
WEBX: Tapped the 18 day EMA and rebounded nicely.
BRCM: Still testing the 50 day EMA
COHR: Low volume doji over the 18 day EMA
RBAK: Nice doji over the 200 day SMA.

New Plays:

Upside:

New buy point on current positions:

Play Date: 08/24/2006
DRIV (Digital River--$47.00; +0.22; optionable): e-commerce outsourcing solutions
http://biz.yahoo.com/p/d/driv.html
After Hours: $47.05
STATUS: Breakout test. DRIV made us some nice money on last week's breakout from its 14 week double bottom with handle base. Strong volume on that move and a low volume test this week, back to the 18 day EMA (45.86) Thursday, rebounding back up from that test lower on rising, average volume. Strong money flow remains. Like the strong rebound back up to the 10 day EMA after the test. The higher volume shows buyers coming back in. Looks ready to continue the breakout move.
Volume: 937.941K Avg Volume: 983.194K
BUY POINT: $47.55 Volume=1.2M Target=$54.75 Stop=$45.85
POSITION: DQI LI - Dec. $45c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/driv.html

Downside Plays: Want to be ready for the downside as well. There are downside leaders just as there are upside. These look weak.

Play Date: 08/24/2006
CRI (Carter Holdings--$21.96; -0.63; optionable): Apparel
http://biz.yahoo.com/p/c/cri.html
STATUS: Put. Turning lower in a continuing downtrend that started in early May. Has been stumbling down the 18 and 50 day EMA, coming down off a test of the 50 day (24.36) in July. It rebounded to the 18 day EMA (22.73) the past week and is now turning down, showing much stronger volume as it did Thursday. Weak money flow and relative strength should be called relative weakness. Ready to move in on a further fall. A move to the target lands a 46%ish gain.
Volume: 713.3K Avg Volume: 854.574K
BUY POINT: $21.84 Volume=850K Target=$19.80 Stop=$22.55
POSITION: CRI XX - Dec. $22.50p (-51 delta)
http://www.investmenthouse.com/ci/cri.html

Play Date: 08/24/2006
EXPD (Expeditors Intl.--$39.59; -0.63; optionable): Air delivery & freight
http://biz.yahoo.com/p/e/expd.html
After Hours: $39.59
STATUS: Put. After a strong run in early 2006 EXPD tried another break higher in late June. It ran out of volume and failed, starting the current downtrend. It tumbled to the 200 day SMA (42.18), broke through and then came back to test that level a week back. Turned back down and creeping lower this week. Looking for a stronger drop from here as EXPD continues the downtrend. A move to the target lands a 42%ish gain.
Volume: 1.182M Avg Volume: 2.176M
BUY POINT: $39.38 Volume=2.2M Target=$37.10 Stop=$40.05
POSITION: URP VH - Oct. $40p (-49 delta)
http://www.investmenthouse.com/ci/expd.html

Play Date: 08/24/2006
JEF (Jeffries Group--$24.39; -0.80; optionable): Brokerage
http://biz.yahoo.com/p/j/jef.html
STATUS: Put. Peaked in late April and falling below the 50 day EMA (26.62) since. It broke below the 200 day in July, tested it twice in August, and then started lower. Thursday volume jumped as it caved further. Looking for a continued fall as JEF follows some really weak money flow lower. A move to the target lands a 60%ish gain.
Volume: 1.221M Avg Volume: 891.183K
BUY POINT: $24.15 Volume=895K Target=$22.10 Stop=$24.82
POSITION: JEF VE - Oct. $25p (-53 delta)
http://www.investmenthouse.com/ci/jef.html

Current plays ready to move:

BRCM, COHR, RBAK, WEBX: All tested lower, held support, and rebounded. Another shakeout, and now they look ready. See 8-23-06 for details. Will be issuing alerts if they make their moves.

Good Investing!
Jon L. Johnson and your IH Alerts Team

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