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Begin part 3 of 3

THE PLAYS

Good movers: GYMB; LIFC; MDRX; MOLX; NVDA; PLCE; SAY; SEIC; TWGP

Tuesday night play results:
GYMB: Strong break higher
HOV: Another reach lower and recovery, holding the 90 day MA
MDRX: Nice volume continues as MDRX breaks higher
RTEC: Gapped higher on better trade but not the breakaway yet
SAY: Strong move higher

New Plays:

Upside:

Play Date: 09/20/2006
ASML (ASML Holdings--$22.58; +0.28; optionable): Semiconductor equipment
http://biz.yahoo.com/p/a/asml.html
STATUS: Double bottom w/handle. Easing back on low, below average volume the past week, tapping at the 18 day EMA (22.02) Tuesday and then rebounding modestly Wednesday but on continued low trade. It did not participate in the big move but then again, many semiconductors sat it out as they continued to test their moves that started the last leg higher. Nice 8 month base has set up, and this low volume fade is a good shakeout after the strong volume break higher to start the month. Strong money flow is heading higher, leading the price even as it pulls back in this handle. Strong 11 to 4 accumulation shows solid buying during the consolidation. Just waiting for volume to jump back up as ASML makes its rebound move.
Volume: 1.592M Avg Volume: 2.547M
BUY POINT: $22.78 Volume=3.2M Target=$26.35 Stop=$22.11
POSITION: MFQ AX - Jan. $22.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/asml.html

Play Date: 09/20/2006
CHINA (CDC Corp.--$5.79; +0.21; optionable): Enterprise software, mobile applications, and online games in China
http://biz.yahoo.com/p/c/china.html
STATUS: Flying plateau. Nice break higher Wednesday on strong volume as CHINA cleared a 3 week lateral move over the 10 day EMA (5.55). This acted as the consolidation of the mid-August breakout from a 5.5 month flat base. Solid 2 to 0 accumulation in the short consolidation pattern with money flow surging higher. Looking to step in as CHINA continues its run higher.
Volume: 2.831M Avg Volume: 1.183M
BUY POINT: $5.87 Volume=1.2M Target=$7.10 Stop=$5.55
POSITION: UIH AA - Jan. $5c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/china.html

Play Date: 09/20/2006
DLLR (Dollar Financial--$21.03; +0.69; no options): Credit services
http://biz.yahoo.com/p/d/dllr.html
STATUS: Test breakout. A new issued in early 2005, DLLR set up a nice base on base pattern from April to September. It tried the breakout in late July but failed, fading back into a new 7 week cup base. Not much of a drop; it held the 50 day EMA (19.22) as support. It broke sharply higher last week on very strong, above average volume. It tested immediately, coming back to the 10 day EMA (20.27) on lower, below average volume. Money flow is still running higher. Strong 5 to 2 accumulation shows plenty of buying as DLLR moved laterally over the 50 day EMA. Excellent money flow is leading the way. Just needs some more volume.
Volume: 94.398K Avg Volume: 177.383K
BUY POINT: $21.25 Volume=225K Target=$24.50 Stop=$19.77
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/dllr.html

Play Date: 09/20/2006
VTIV (Ventiv Health--$32.70; +1.60; optionable): Commercialization services to pharma and other health sectors
http://biz.yahoo.com/p/v/vtiv.html
STATUS: Cup w/handle breakout. Volume jumped as VTIV did the same thing Wednesday, finally breaking out from a 24 week base formed using the 200 day SMA (28.60) as support. Nice handle forming over the 18 day EMA (31.14) set up the breakout move. Nice break higher ready to take VTIV to a new all-time high. Money flow is surging and we expect VTIV to follow, but after this strong move we anticipate a bit of a test early Thursday. On a dip lower and rebound we move in.
Volume: 544.705K Avg Volume: 231.522K
BUY POINT: Test down to $32, then $32.45 is the buy point on the rebound. Volume=300K Target=$37.50 Stop=$31.21
POSITION: QBP AZ - Jan. $32.50c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/vtiv.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: Trying to make the breakaway.

GME: Volume was up as GME looks ready to break to a new all-time high.

MGPI: Holding the 50 day EMA in a lateral move this month, still building the base.

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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