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Begin part 3 of 3

THE PLAYS

Good Movers: AOB; ICE; MA; NVDA; RNWK; SIGM

Monday night play results:
COL: Still working on the handle
FCFS: Holding the 18 day EMA on more low volume. Ready to make that higher low
JSDA: Holding the 10 day EMA as it continues work on its handle as well
VTAL: Big doji over the 50 day EMA. Sure looks ready.
ULTI: Gapped higher but faded to close flat. Hmmm.

New Plays:

Upside:

Play Date: 10/31/2006
AQNT (Aquantive--$27.18; -0.03; optionable): Digital marketing company
http://biz.yahoo.com/p/a/aqnt.html
EARNINGS: 11-2-06
STATUS: Cup w/handle. Nice low volume test of the 10 day EMA (27.13) the past week as AQNT tries to put the finishing touches on a nicely formed 10 month base. This base is setting up a breakout to a 6.5 year high. Excellent money flow is leading higher as this market leader looks ready for the breakout.
Volume: 861.858K Avg Volume: 1.157M
BUY POINT: $28.45 Volume=1.7M Target=$33.95 Stop=$26.89
POSITION: QBT CE - Mar. $25c (69 delta, 84 OI) &/or Stock
http://www.investmenthouse.com/cd/aqnt.html

Play Date: 10/31/2006
EPIC (Epicor Software--$14.03; -0.06; optionable): Application software
http://biz.yahoo.com/p/e/epic.html
EARNINGS: Reported 10-25-06
STATUS: Cup w/handle. Forming a two week handle at the 10 day EMA (14.08), fading back to that level on lower volume until Tuesday when volume surged. A ten month base that is part of a much larger 3 year pattern. Looking for volume to continue (though at not such epic levels) as EPIC turns higher and shows us the breakout move.
Volume: 838.391K Avg Volume: 261.144K
BUY POINT: $14.65 Volume=435K Target=$17.55 Stop=$13.78
POSITION: EUE CC - Mar. $15c (53 delta, 95 OI) &/or Stock
http://www.investmenthouse.com/cd/epic.html

Play Date: 10/31/2006
PMTI (Palomar Medical Tech--$47.09; -0.76; optionable): Light-based products for medical and cosmetic treatments
http://biz.yahoo.com/p/p/pmti.html
EARNINGS: Reported 10-24-06
STATUS: Test breakout. PMTI gapped higher last week on strong volume as it reported strong results and cleared a 6 month cup with handle base. It has immediately tested, coming back to the 10 day EMA (20.17) on Monday and rebounding modestly on Tuesday. It has not filled the gap, but we don't expect it to at this point; in other words we expect it to move higher near term before coming back to fill that gap. Money flow remains well out in front of the price, and we are looking for it to continue higher on rising trade to give us the entry to this market leading stock in pattern and fundamentals.
Volume: 535.684K Avg Volume: 392.63K
BUY POINT: $47.78 Volume=575K Target=$56.95 Stop=$45.95
POSITION: HKQ BJ - Feb. $45c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/pmti.html

Play Date: 10/31/2006
SPIL (Siliconware Precision--$6.44; +0.14; optionable): Semiconductor equipment
http://biz.yahoo.com/p/s/spil.html
STATUS: Double bottom w/handle. Solid price/volume action the past week, i.e. strong volume on upside sessions and lower on the down sessions. Tuesday was in line with the strength as SPIL rallied on a strong shot of rising, above average volume. Looks ready to make the breakout from its 6 month base. Money flow is screaming higher ahead of price and we are looking for SPIL to follow it. Nicely set up as SPIL has a new high in its sights.
Volume: 2.568M Avg Volume: 1.728M
BUY POINT: $6.54 Volume=1.8M Target=$7.95 Stop=$6.09
POSITION: SRD AA - Jan. $5c (75 delta) &/or Stock
http://www.investmenthouse.com/cd/spil.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, CELG, DRIV, GME, GOOG, ISE, MA, MRVL, NVDA, WEBX

AAPL: Gapped higher on a firm ship date for its Nano Shuffle. Still holding above the 10 day EMA with a test after that strong break higher two weeks back on strong earnings.

AKAM: Trying to make a stand at the 50 day EMA.

CELG: Going to be added to the SP500.

GME: Still looks set to make the next break higher.

ISE: And still holding the 10 day EMA on below average volume.

MA: Now it is showing life for the next breakout.

NVDA: Nice break to a new 5 year high on surging volume.

WEBX: Trying to make the comeback after the Friday dump lower to the 90 day SMA.

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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