us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good Movers: ABAX; DRIV; FSL; FTO; GILD; HMSY; MOLX; NITE; SHOO; WEBX

Weekend play results:
ANEN: Jumped higher but closed well off the high
ASMI: Volume bumped higher as it prepares to make the move.
CVD: Nice doji again
HLEX: Modest move higher on lower trade
SPY: Nice break higher off the 10 day EMA
BRCM: Doji at the 50 day EMA. Still looks ready
CTSH: Nice price move
DRIV: Good jump off the 18 day EMA on rising trade

New Plays:

Upside:

Play Date: 08/28/2006
IDXX (Idexx Labs--$91.67; +1.98; optionable): Diagnostic substances
http://biz.yahoo.com/p/i/idxx.html
After Hours: $91.84
STATUS: Flying plateau. IDXX exploded higher in late July on strong volume as it reported blowout earnings. It then moved laterally the past three weeks over the 10 day EMA (89.39), consolidating and setting up the next leg higher. Money flow continues to run higher and now relative strength is breaking out as IDXX breaks higher as well. Ready to step in as IDXX runs to 100; a strong stock will close out the deal on the way to 100 after it clears 90.
Volume: 254.443K Avg Volume: 153.131K
BUY POINT: $91.94 Volume=155K Target=$99.00 Stop=$89.25
POSITION: UID AR - Jan. $90c (63 delta)
http://www.investmenthouse.com/ci/idxx.html

Play Date: 08/28/2006
IIG (Imergent--$14.90; +0.36; optionable): e-commerce technology, training, various web-based technologies
http://biz.yahoo.com/p/i/iig.html
STATUS: Saucer with handle. The current 4 month base is forming the handle to a 20 month base. This last base is a nicely formed saucer over the 50 day EMA (13.49), using that key support to set up for the breakout. Important level because the institutions add shares at this level. The 5 to 2 accumulation (5 up price weeks on rising volume to 2 down price weeks on rising volume) shows they are doing just that. One of the top stocks in its sector and looks ready to get the move on here.
Volume: 110.6K Avg Volume: 112.128K
BUY POINT: $15.12 Volume=168K Target=$18.25 Stop=$14.44
POSITION: IIG AC - Jan. $15c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/iig.html

Play Date: 08/28/2006
PLMD (Polymedica--$39.29; +0.24; optionable): Drug manufacturers
http://biz.yahoo.com/p/p/plmd.html
STATUS: Cup w/handle. Similar to many stocks, PLMD faded last week to test a strong break higher on solid trade. Nice handle to an 18 week base, setting up for a break higher. Positive accumulation and strong money flow holding tough as PLMD tests back, holding the 18 day EMA (39.14) on the lows the past week. Nice test with plenty of room to the upside (April high in the base is at 46) to give us a nice gain on the rebound and rally toward a new all-time high.
Volume: 138.388K Avg Volume: 281.919K
BUY POINT: $39.68 Volume=423K Target=$45.75 Stop=$38.55
POSITION: PM LH - Dec. $40c (50 delta) &/or Stock
http://www.investmenthouse.com/cilmd.html

New buy point on current positions:

Play Date: 08/28/2006
MOLX (Molex--$36.28; +1.58; optionable): Micro-miniature connectors, etc.
http://biz.yahoo.com/p/m/molx.html
STATUS: Test breakout. MOLX blasted higher two weeks back, moving out of a 14 week reverse head and shoulders base, tested with the market the past week, holding the 18 day EMA (34.59) on the low. It then exploded higher Monday on the best volume in three weeks. Surging money flow, great pattern, etc. Blasting higher and ready to move in as it continues.
Volume: 766.006K Avg Volume: 556.748K
BUY POINT: $36.40 Volume=550K Target=$40.95 Stop=$35.00
POSITION: OXQ KG - Nov. $35c (67 delta) &/or Stock
http://www.investmenthouse.com/cimolx.html

Current plays ready to move:

Play Date: 08/26/2006
ASMI (ASM International--$17.25; +0.12; optionable): Chip equipment
http://biz.yahoo.com/p/a/asmi.html
STATUS: Double bottom w/handle. Volume moved higher Monday as ASMI held the 200 day SMA (17.08) on the test and is starting back up. Looks ready to make the move. To recap: Excellent handle formed last week with a tight, low volume pullback to the 200 day SMA after surging through that level two weeks back on strong volume. Nice handle to the 16 week base, holding the 200 day SMA and ready to follow the rising money flow higher. Plenty of room to run upside, and it can do it quickly as demonstrated on the last two legs higher; just what we want for this week.
Volume: 108.044K Avg Volume: 194.685K
BUY POINT: $17.55 Volume=285K Target=$20.97 Stop=$16.95
POSITION: IQB LW - Dec. $17.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/asmi.html

Play Date: 08/21/2006
BRCM (Broadcom--$28.70; +0.16; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $28.69
STATUS: Test 50 day EMA. Very tight doji Monday on continued below average volume. Crouched, poised to bounce, ready to blast off, etc. Call it what you want, we are waiting for the move and it looks to be setting up a strong one. To recap: Locked and loaded, holding above the 50 day EMA (28.38) last week in a nice low volume test after blasting through that level two weeks back on strong volume. Broke its downtrend, broke the 50 day EMA, and now rested. Ready to move in as it rebounds. If the market moves well, we can even get aggressive and get in a bit lower in price than the original buy point. This may be a very good long term entry point for BRCM as well. We will just have to see how it plays out after the market makes this next run. History: It has been a long time since January when we bought a bunch of BRCM and it bolted higher on strong volume. That was just about the apex of its run and shortly after it topped and rolled over. BRCM broke through its 4 month downtrend this month, moving laterally with SOX and then breaking sharply higher last Tuesday and Wednesday. Strong volume on the upside move shows the buyers (short coverers and long buyers) were moving in force. It then eased back to end the week and did more of the same Monday, fading toward the 50 day EMA on lower volume, below average. Has made the test of the 50 day EMA, and now looking for the bounce higher. This was a trend reversal move, and this is the first test of the stronger break higher. If it continues up from here on volume we know the buyers are back in.
Volume: 8.347M Avg Volume: 17.123M
BUY POINT: Aggressive: $29.15 (orig. $29.75) Volume=20M Target=$36.00 Stop=$28.08
POSITION: RCQ AF - Jan. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.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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