trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: CTCM; WFR; XING

Monday night play results:
CTCM: Nice break higher on solid trade
ONNN: Sold off through the 200 day SMA, rebounding off the 18 day EMA
PCP: Down hard to the 50 day EMA
XMSR: Sold lower on rising trade on the Sirius/Howard Stern news

New Plays:

Upside:

Play Date: 09/19/2006
GYMB (Gymboree--$35.87; -0.33; optionable): Children's apparel stores
http://biz.yahoo.com/p/g/gymb.html
STATUS: Cup w/handle. Nice handle forming the past week as GYMB moves laterally over the 10 day EMA (35.27), tapping at that support Tuesday and rebounding nicely. Low volume; the nice quiet action you want to see in the handle. Nice 12 week base that is just about ready to make the breakout to a new all-time high. Leader in its sector.
Volume: 683.31K Avg Volume: 949.48K
BUY POINT: $36.88 Volume=1.4M Target=$44.00 Stop=$35.11
POSITION: GQU BG - Feb. $35c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/gymb.html

Play Date: 09/19/2006
HOV (Hovnanian Enterprises--$28.88; -0.42; optionable): Homebuilder
http://biz.yahoo.com/p/h/hov.html
STATUS: Test 50 day EMA. After a nasty drop from July 2005, HOV has moved laterally at the bottom of the range the past 2.5 months. It bounced up off the bottom to start the month, clearing the 50 day EMA (27.92) last week and then coming back to test on the Tuesday low and rebounding to hold the 90 day MA (28.65). Looking for it to continue the move, rebounding off this level and following the strong money flow higher.
Volume: 1.475M Avg Volume: 1.708M
BUY POINT: $29.65 Volume=1.8M Target=$34.75 Stop=$28.54
POSITION: HOV AF - Jan. $30c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/hov.html

Play Date: 09/19/2006
MDRX (Allscripts Healthcare Sol.--$21.35; +0.42; optionable): Clinical software, etc. for the medical industry
http://biz.yahoo.com/p/m/mdrx.html
STATUS: Flying plateau. Moving laterally the past 6 weeks after a very strong move to start September that took MDRX out of its 24 week cup base. Nice run to 22, and now moving in a range from 20 to 22. Strong volume surge Tuesday as MDRX started higher. Closed off the high but looks ready to continue the run. Excellent 3 to 0 accumulation in the current move (3 up price weeks on rising volume to 0 down price weeks on rising volume) has set the move, and money flow is leading higher.
Volume: 2.425M Avg Volume: 712.726K
BUY POINT: $21.62 Volume=1.1M Target=$25.95 Stop=$20.44
POSITION: MXQ AD - Jan. $20c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/mdrx.html

Play Date: 09/19/2006
RTEC (Rudolph Technologies--$18.40; -0.01; optionable): Control and defect inspection systems for chip equipment manufacturers
http://biz.yahoo.com/p/r/rtec.html
STATUS: Cup w/handle. RTEC has set up an 18 week base, forming s short double bottom with handle as the handle to the pattern. Nice test the past few sessions, coming back to near support at the 10 day EMA (18.10) and rebounding. Excellent 8 to 3 accumulation in the base (8 up price weeks on rising volume to 3 down price weeks on rising volume) shows strong buying, setting up the breakout to come. Strong money flow as well. Looks super.
Volume: 123.635K Avg Volume: 307.328K
BUY POINT: $18.88 Volume=450K Target=$22.75 Stop=$17.65
POSITION: UXH BW - Feb. $17.50c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/rtec.html

Play Date: 09/19/2006
SAY (Satyam Computer Services--$39.55; +1.46; optionable): IT services
http://biz.yahoo.com/p/s/say.html
STATUS: Cup w/handle breakout. Strong move Tuesday as SAY broke higher out of the handle of its 5.5 month base. Volume swelled the prior two sessions, and Tuesday it delivered, ready to move to a new all-time high. Nice pattern and starting the move. Looking to take some positions here and then on the test of the breakout.
Volume: 954.7K Avg Volume: 555.442K
BUY POINT: $39.77 Volume=560K Target=$45.85 Stop=$38.00
POSITION: SAY AH - Jan. $40c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/say.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: Working on a new handle at the 10 day EMA

AKAM: Gapped lower and tested the 10 day EMA on the low and rebounding to cut the losses.

CELG: Up to the 50 day EMA on the intraday high. Still working on the new base here.

FLR: Ready to head lower

MGPI: Still basing, working laterally along the 10 day EMA

MRVL: Up to the 90 day MA and then fading Tuesday. Needs to hold near 20 and form a handle to the double bottom.

SGMS: Up to the 50 day EMA on Tuesday. Not sure if it will make the attempt to move over without a modest test first.

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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