stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: AAPL; CMRG; LMNX; NVDA; ORCL; BP

Wednesday night play results:
CMRG: Strong break higher.
IDEV: Nice doji at the 18 day EMA
TTC: Doji below the 10 day EMA
XPRSA: Dove lower but then rebounded for just a modest loss
NVDA: Nice volume as NVDA broke higher off an 18 day EMA test.

New Plays:

Upside:

Play Date: 09/07/2006
CSTR (Coinstar--$26.59; +0.32; optionable): Self-service coin-counting services
http://biz.yahoo.com/p/c/cstr.html
STATUS: Cup w/handle. Nice action as CSTR forms the handle to its 5 month base. Tried to make the break Thursday on a nice shot of above average volume, but faded back into the handle range by the close. Nonetheless a very nice pattern with money flow well out in front. Being patient and letting it show us the breakout before we move in.
Volume: 354.212K Avg Volume: 154.086K
BUY POINT: $27.19 Volume=300K Target=$32.65 Stop=$26.00
POSITION: QLR AE - Jan. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/cstr.html

Play Date: 09/07/2006
FSL (Freescale Semiconductor--$30.32; -0.21; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
STATUS: Cup w/handle. After giving us a decent little run in the third leg of the summer rally FSL has faded back Wednesday and Thursday after a strong Tuesday move. It tapped at the 18 day EMA (29.97) on the intraday lows and bounced back, showing a bit stronger, above average volume Thursday. Looking for it to complete the test and then rebound. Want to see some continued strong volume as it does. Nice 17 week pattern has formed over the 200 day SMA (28.09), setting up for a breakout to a new all-time high.
Volume: 3.045M Avg Volume: 2.449M
BUY POINT: $30.94 Volume=3.5M Target=$35.95 Stop=$29.75
POSITION: FSL AF - Jan. $30c (58 delta) &/or Stock
http://www.investmenthouse.com/cdfsl.html

Play Date: 09/07/2006
PRFT (Perficient--$13.46; 0.00; no options): ITS consulting services
http://biz.yahoo.com/p/p/prft.html
STATUS: Cup w/handle. PRFT was named one of the fastest growing firms in Texas. Okay. That just underscores the strength it is showing in its fundamentals and its technical pattern. It is forming a sweet handle to its 13 week base that has formed along the 50 day EMA (12.77). Setting up for a breakout to a 6 year high as it breaks higher off this 10 day EMA test.
Volume: 129.227K Avg Volume: 237.449K
BUY POINT: $13.85 Volume=356K Target=$16.65 Stop=$13.11
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cdprft.html

Downside:

Play Date: 09/07/2006
ISLE (Isle of Capri Casino--$21.10; -0.07; optionable): Casinos
http://biz.yahoo.com/p/i/isle.html
STATUS: Put. ISLE is in a continuing downtrend after forming a broad top in April and May and then heading lower. It has bounced down the 18 day EMA (21.30), dropping roughly $2 to $3 on each leg. It has rebounded up to the 18 day, showing a pair of dojis on the candlestick chart Wednesday and Thursday. That typically indicates a rebound is ending. Looking for a break lower through the 10 day EMA (20.94) to give us the entry to the next leg lower. A move to the target lands us a 60%ish gain.
Volume: 473.167K Avg Volume: 377.52K
BUY POINT: $20.88 Volume=475K Target=$18.85 Stop=$21.32
POSITION: QEP VX - Oct. $20p (-60 delta)
http://www.investmenthouse.com/cdisle.html

Play Date: 09/07/2006
RDEN (Elizabeth Arden--$14.50; -0.22; optionable): Make-up, etc.
http://biz.yahoo.com/p/r/rden.html
STATUS: Put. RDEN formed a broad top February through April and then tumbled through the 200 day SMA (now at 20). It has traded lower and lower down 18 day EMA, rebounding the past week during the third leg of the rally to once more hit the 18 day. It turned over and started lower, breaking below the 10 day EMA (14.66) Thursday. Looking to move in on continued selling and riding it to the target on this next leg lower. A move to the target lands us a 54%ish gain.
Volume: 153.585K Avg Volume: 186.482K
BUY POINT: $14.38 Volume=185K Target=$13.30 Stop=$14.69
POSITION: UWO VC - Oct. $15p (-60 delta)
http://www.investmenthouse.com/cdrden.html

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: A strong break higher.

AKAM: Sold off but then rebounded to flat as it hangs in its lateral move.

CCJ: Nice test of the break higher, setting up another bounce.

NVDA: Nice volume as it jumps off the 10 day EMA.

SGMS: Heading lower once more.

WM: Major breakdown continues.

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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