stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: ANAD; AOB; FTEK; HET; HLF; IAAC; ICE; SAY; SKX

Monday night play results:
OMNI: Gapped higher on continued strong volume but closed well off the high
ORCL: Fell back toward the 50 day SMA on stronger volume. Not what we wanted.
WFR: Gapped higher and rallied but it too closed off the high. Still solid.
CGNX: Doji below the 50 day EMA.

New Plays:

Upside:

Play Date: 12/05/2006
FCX (Freeport McMoran--$61.74; +0.81; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
STATUS: Double bottom w/handle. There are rumors swirling that BP or others might be interested in FCX. That news helped jump it off the 200 day SMA in November, and it has now spent the past two weeks moving laterally along the 10 day EMA, setting up for the next break higher in its 7 month base. That move will give it the breakout we are looking for. Tuesday volume was back up and above average as FCX showed a tight doji. Looks ready to make the next move.
Volume: 6.73M Avg Volume: 5.274M
BUY POINT: $63.08 Volume=7.9M Target=$72.95 Stop=$60.05
POSITION: FCX EM - May $65c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/fcx.html

Play Date: 12/05/2006
IDTI (Integrated Device Tech--$17.02; +0.43; optionable): Semiconductors
http://biz.yahoo.com/p/i/idti.html
STATUS: Cup w/handle. Strong volume Tuesday as IDTI broke higher from the handle to its 4 month base. It used the 50 day EMA (16.11) as support in the handle and has posted a nice break higher off that level. Money flow is solid and leading higher. Excellent 7 to 2 accumulation in the base shows all buying, setting up a great breakout and run ahead.
Volume: 10.627M Avg Volume: 5.108M
BUY POINT: $17.25 Volume=5M Target=$20.74 Stop=$16.38
POSITION: ITQ EW - May $17.50c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/idti.html

Play Date: 12/05/2006
NFLD (Northfield Labs--$15.95; +0.72; optionable): Biotechnology
http://biz.yahoo.com/p/n/nfld.html
STATUS: Cup w/handle. Breaking higher Tuesday from a sweet little 8 week base that is part of a much larger 2 year base. NFLD started working its way off the June 2006 bottom in July, and this is its second base off the low. Strong money flow is surging higher. Volume in this last base has been excellent, showing plenty of accumulation. Making the break higher and has plenty of room to run.
Volume: 710.352K Avg Volume: 467.815K
BUY POINT: $16.12 Volume=600K Target=$19.95 Stop=$15.03
POSITION: DHQ EC - May $15c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/nfld.html

Play Date: 12/05/2006
SVVS (Savvis Communications--$32.95; +2.45; no options): Information technology (digital content, network services, IP VPN)
http://biz.yahoo.com/p/s/svvs.html
STATUS: Ascending base. Volume surged as SVVS started the breakout move from its 7 month base formed roughly along the 50 day EMA (30.08). Nice pattern making a series of higher lows below a constant top at 30 to 32.50. This move is starting the breakout and we are looking at positions on the continued move and then on a successful test.
Volume: 1.375M Avg Volume: 348.203K
BUY POINT: $33.12 Volume=365K Target=$39.95 Stop=$30.95
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/svvs.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: Volume backing off as it now works laterally in a narrow range. Very good compared to the distribution to end November.

CELG: Still moving higher after that nice break upside off the 18 day EMA.

DRIV: Nice. Getting some life after the month-long consolidation. Volume was back above average as it tried to break to a new all-time high.

GOOG: Doji at the 18 day EMA, but the pattern looks to need a bit more lateral movement as in November.

ISE: Still looks ready for the next break higher.

WEBX: Has made it back to the 50 day EMA on lower volume. Not showing the strength it needs here to make the break back up through that resistance and break the 2.5 month trend lower.

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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