stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers: AKAM; SIMG; TWGP; XING

Wednesday night play results:
ANEN: Started higher but wanted a bit more volume.
WFR: No volume
XING: Continued the nice break higher.
COST: Started lower but rebounded to the trendline

New Plays:

Upside:

Play Date: 09/14/2006
DJO (DJ Orthopedics--$38.75; +0.16; optionable): Medical appliances
http://biz.yahoo.com/p/d/djo.html
STATUS: Test 50 day EMA. Volume was up Thursday, moving above average as DJO reached lower and then rebounded. Nice 2 week lateral move above this level, testing back from a strong move in late July and early August. Looking for volume to continue as DJO moves up off this test and follows its strong money flow.
Volume: 249.6K Avg Volume: 193.762K
BUY POINT: $39.26 Volume=291K Target=$44.90 Stop=$37.95
POSITION: DJO LH - Dec. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/djo.html

Play Date: 09/14/2006
HPOL (Harris Interactive--$6.01; -0.11; no options): Market research, polling, consulting
http://biz.yahoo.com/p/h/hpol.html
STATUS: Test breakout. HPOL broke out Monday from a 7 month cup with handle base, surging on strong volume. Nice pattern that used the 200 day SMA as support on the base lows and then the 50 day EMA (5.59) in the handle. Strong 9 to 5 accumulation (9 up price weeks on rising volume to 5 down price weeks on rising volume) shows plenty of buying to set the breakout and run. Looking to come back to test the 10 day EMA (5.89) and then rebound from there. When it does we will move in.
Volume: 386.428K Avg Volume: 220.129K
BUY POINT: $5.97 Volume=330K Target=$7.20 Stop=$5.85
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/hpol.html

Play Date: 09/14/2006
PLCE (Childrens Place--$57.84; +1.38; optionable): Apparel stores
http://biz.yahoo.com/p/p/plce.html
STATUS: Test 200 day SMA. The consumer is looking fine and so is PLCE. Volume has jumped up this week as it comes off a 200 day SMA (54.29) test. Nice run in Q1 needed a breather and this 18 week base is doing just that. Want to pick it off as it jumps off the 200 day and starts the rally to form the right side of its base that will set it up for a breakout to a new all-time high.
Volume: 1.119M Avg Volume: 544.386K
BUY POINT: $58.45 Volume=800K Target=$67.50 Stop=$56.65
POSITION: TUY CL - Mar. $60c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/plce.html

Continuing plays ready to move:

LIFC
FMD
NTLI
PFWD
WFR

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

AKAM: Another strong surge, gapping higher. Given the gap after a strong run we took some of the gain.

FLR: Full flight dive in progress

MRVL: Getting more interesting with a break over the 50 day EMA on strong, above average volume. If you are into taking a flier, this might be the time to work in some positions.

WM: Rebounded to test the dump lower, running through the 18 day EMA on the high but then giving it all up. Big tombstone doji and it looks ready to fall again.

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.

stock recommendation
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