us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good Movers: BRCM; GES; LTD; PMTI; RWNK; SPIL

Monday night play results:
CBG: Solid volume as it continues higher
CRM: Nice price gain, nice volume.
CSCO: Moved higher but a very anemic day on the heels of the Monday move.
IGT: Thud.
VOL: Doji on the 90 day MA after that solid Monday price move.

New Plays:

Upside:

Play Date: 11/07/2006
BOBJ (Business Objects--$37.07; +0.85; optionable): Business intelligence software
http://biz.yahoo.com/p/b/bobj.html
STATUS: Cup w/handle. Strong volume Tuesday as BOBJ gapped up on the four week handle to its 10 month base, bumping the breakout but unable to consummate the deal. Positive accumulation, good money flow leading higher. Reported earnings on 10-25-06 and gapped higher; now looking to expand on that with the breakout.
Volume: 3.771M Avg Volume: 2.315M
BUY POINT: $37.88 Volume=3M Target=$45.45 Stop=$35.78
POSITION: BBQ DG - Apr. $35c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/bobj.html

Play Date: 11/07/2006
LVLT (Level 3 Communications--$5.53; +0.18; optionable): Telecom
http://biz.yahoo.com/p/l/lvlt.html
STATUS: Reverse head and shoulders. Nicely formed 7 month pattern that got some volume Tuesday as it came off a higher low at the 18 day EMA (5.39). This past three weeks tested the mid-October breakout, coming back to tap and hold that level. Trying to make start the rebound that continues the breakout, and it has some solid 10 to 3 accumulation in the base (10 up price weeks on rising volume to 3 down price weeks on rising volume) to give it the support to make a good run. Money flow is up and leading the price, a nice complement to the accumulation.
Volume: 50.892M Avg Volume: 32.442M
BUY POINT: $5.81 Volume=38M Target=$7.74 Stop=$5.44
POSITION: QHN CA - Mar. $5c (70 delta) &/or Stock
http://www.investmenthouse.com/cd/lvlt.html

Continuing plays ready to move:

Play Date: 11/02/2006
AMT (American Tower--$37.62; +0.23; optionable): Cell towers
http://biz.yahoo.com/p/a/amt.html
STATUS: Test 50 day EMA. AMT is still working laterally, consolidating the modest September and October move higher out of a 4 month cup with handle base. It has formed a short double bottom with handle base over the 50 day EMA (36.24), making a higher low at the 10 day EMA (36.93) and looking for a new breakout. Volume is rising; need to see it really jump higher with the price break.
Volume: 2.013M Avg Volume: 2.182M
BUY POINT: $37.75 Volume=3M Target=$43.95 Stop=$35.88
POSITION: AMT DU - Apr. $37.50c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/amt.html

Play Date: 11/01/2006
NUVA (Nuvasive--$23.00; -0.21; optionable): Medical instruments
http://biz.yahoo.com/p/n/nuva.html
STATUS: Test breakout. Strong breakout in October that took NUVA out of an 8 month base. Nice run to 24 and then a test the past four weeks, coming back to near support and the 18 day EMA (22.88). It is set, it is ready, but it needs to show the resumption of the break higher. Money flow is solid, showing the direction.
Volume: 163.517K Avg Volume: 289.014K
BUY POINT: $23.85 Volume=375K Target=$28.45 Stop=$22.65
POSITION: QNU CX - Mar. $22.50c (56 delta, 74 OI) &/or Stock
http://www.investmenthouse.com/cd/nuva.html

Play Date: 10/21/2006
ULTI (Ultimate Software--$24.73; +0.08; no options): Software
http://biz.yahoo.com/p/u/ulti.html
STATUS: Cup w/handle. Very quiet on the western front as ULTI works laterally over near support at the 10 and 18 day EMA. Volume jumped to end October and it looked as if ULTI was about to launch, but it settled back this month as the market weakened some. It held near support, however, making a higher low in its handle. Set up beautifully to follow the money flow that just keeps moving higher. All it has to do is show us the break.
Volume: 174.704K Avg Volume: 186.883K
BUY POINT: $25.12 Volume=287K Target=$29.95 Stop=$23.89
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ulti.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

AKAM: Continuing higher on strong volume; next level it needs to clear is 50.

GOOG: Still testing the 10 day EMA on low volume.

ISE: Doji that tried to clear the 10 day EMA but failed, giving back a nice gain. Needs to hang on around here and continue the rebound off the 50 day EMA.

MRVL: Broke through its 9 month downtrend on some rising volume. Hmmmm.

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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