us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good Movers: AAPL; AOB; BOBJ; HOC; IO; JCP; LTD; ULTI

Tuesday night play results:
BOBJ: Nice break out on strong volume
LVLT: Held steady on lower volume after that strong Tuesday move
AMT: Holding steady.
NUVA: Still holding the 18 day EMA on this test.
ULTI: Nice break higher on strong volume.

New Plays:

Upside:

Play Date: 11/08/2006
CYMI (Cymer--$46.43; +0.03; optionable): Chip equipment
http://biz.yahoo.com/p/c/cymi.html
STATUS: Test 200 day SMA. CYMI rallied well to start October, but then slipped with all of the chips. It found a floor at the 200 day SMA (45.30) and has worked laterally since, forming a small double bottom at that support. This is part of a larger 6 month base, this pullback to the 200 day acting as something of a handle, setting the stage for the next break higher. A very good risk/reward position given the support at the 200 day SMA. Volume was up Wednesday as it showed a doji, making a higher low at the 18 day EMA (45.97). Looking for a strong breakout on even stronger volume to give us the buy point.
Volume: 947.612K Avg Volume: 886.014K
BUY POINT: $47.35 Volume=1.3M Target=$55.95 Stop=$45.11
POSITION: CQG BI - Feb. $45c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/cymi.html

Play Date: 11/08/2006
PFWD (Phase Forward--$14.04; +0.50; optionable): Integrated enterprise-level software
http://biz.yahoo.com/p/p/pfwd.html
STATUS: Test breakout. Has been a bit volatile, but it won't quit, and has now set itself up in a nice base with a breakout and test under its belt. PFWD gapped higher two weeks back on strong earnings, moving out of a 21 month cup with handle base. Strong volume on the move and a test that came all the way back to fill the gap and then immediately recovered. Nice breakout to a new high and volume was up Wednesday as PFWD continued higher, resuming the breakout move. Ready to move in as it continues higher.
Volume: 240.654K Avg Volume: 167.695K
BUY POINT: $14.24 Volume=252K Target=$17.00 Stop=$13.24
POSITION: UTO DC - Apr. $15c (55 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/pfwd.html

Play Date: 11/08/2006
THQI (THQ, Inc.--$30.55; +1.86; optionable): Multimedia graphics software
http://biz.yahoo.com/p/t/thqi.html
STATUS: Test 50 day EMA. Nice breakout in early September from a 5 month cup with handle base took THQI to 32 in mid-October. It came back to test, then sold a bit more to start November in that selling. That took it to the 50 day EMA (28.82) Tuesday, but Wednesday it was full of fire as it rebounded to post a nice price gain on continued strong volume. Nice rebound off of key support, and looking to move in as it continues through the buy point.
Volume: 3.128M Avg Volume: 1.483M
BUY POINT: $31.38 Volume=2M Target=$37.72 Stop=$29.69
POSITION: QHI CF - Mar. $30c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/thqi.html

Continuing plays ready to move:

Play Date: 11/02/2006
SKX (Skechers USA--$29.12; +0.35; optionable): Footwear
http://biz.yahoo.com/p/s/skx.html
EARNINGS: Announced 10-25-06
STATUS: Test breakout. Volume jumped well above average Wednesday as SKX bounced modestly off the 10 day EMA (28.75), closing modestly off its intraday high. Looks ready to make the move, but it was not quite enough Wednesday. To recap: Gapped sharply higher the last week of October as SKX broke out of its 6 month cup with handle base on a strong earnings report. The move took SKX to a new all-time high and this is a great low volume test, coming back in the market selling but on very low volume Thursday and Friday. Looking it to hold here at the 10 day EMA to start its move higher.
Volume: 710.5K Avg Volume: 403.705K
BUY POINT: $29.41 Volume=500K Target=$34.95 Stop=$28.48
POSITION: SKX DF - Apr. $30c (49 delta) &/or Stock
http://www.investmenthouse.com/cd/skx.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: Stronger volume as AAPL breaks higher from the 18 day EMA test.

ISE: Still working at the 50 day EMA, testing it on the lows and rebounding. Trying to get something going, but taking its time.

MRVL: Managed to hold the break over the trendline. Now we see if it can extend.

NVDA: Back up to the late October high, but volume is not running higher with it. Need to be careful here as the pattern is very choppy along with that questionable volume.

WEBX: Trying to make a higher low here at the 50 day EMA.

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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