stock split, stock recommendation

Begin part 3 of 3

THE PLAYS

Tuesday night play results:
EFD: Faded on lower volume to 27 after the strong move. This is what we wanted and now ready to continue the move.
OMCL: Faded further to just below the 18 day EMA.
CVD: Falling from the 200 day SMA test
TJX: Tapping at the 50 day EMA from below.

New Plays:

Upside:

Play Date: 12/13/2006
DRI (Darden Restaurants--$41.18; +1.27; optionable): Casual restaurants
BACKGROUND: Last announced a split 3:2 on 3-21-02 at $38
http://biz.yahoo.com/p/d/dri.html
STATUS: Test 50 day EMA. DRI broke out from a 7 month base in mid-September and surged to 44 in early October. It then faded and is currently forming a new base, coming back to support at 40 and working laterally along that level for November and to this point in December. Wednesday is surged higher on strong volume, moving through the 50 day EMA (40.64) as it jumped. With the strong volume and decisive move through the 50 day we are looking at taking positions on a further move.
Volume: 2.478M Avg Volume: 1.573M
BUY POINT: $41.33 Volume=1.6M Target=$49.45 Stop=$39.75
POSITION: DRI DH - Apr. $40c (62 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/dri.html

Play Date: 12/13/2006
KNOL (Knology, Inc.--$11.12; +0.18; no options): Wireless communications
http://biz.yahoo.com/p/k/knol.html
STATUS: Ascending base. Volume is starting to pick up as KNOL starts to breakout from its 7 month base that formed using the 50 day EMA (10.28). Excellent 10 to 4 accumulation (10 up price weeks on rising volume to 4 down price weeks on rising volume) shows plenty of buying to send it to that new high. Strong money flow is a good complement. Looking for volume to kick up as it KNOL resumes the move.
Volume: 91.188K Avg Volume: 124.194K
BUY POINT: $11.31 Volume=186K Target=$13.60 Stop=$10.55
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/knol.html

Play Date: 12/13/2006
NMGC (Neomagic--$6.22; +0.62; no options): Semiconductors
http://biz.yahoo.com/p/n/nmgc.html
STATUS: Cup. This is not ready for a new all-time high, but it is showing plenty of buying and has a lot of momentum as it builds the right side of its year long base. After a weeklong test back to the 10 day EMA (5.55) it exploded higher again on Wednesday with volume surging back above average. Looking to move in and ride the next run as NMGC continues its move.
Volume: 572.759K Avg Volume: 159.728K
BUY POINT: $6.31 Volume=220K Target=$7.95 Stop=$5.87
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nmgc.html

Continuing ready to move:

Play Date: 12/12/2006
HLTH (Webmd Corp.--$12.13; +0.08; optionable): Healthcare information services
http://biz.yahoo.com/p/h/hlth.html
STATUS: Saucer w/handle. Volume jumped back up Wednesday as HLTH looks ready to break free from the handle. Volume surged to a couple of weeks back, setting up this move. It is now returning to make the break. To recap: HLTH is in the hunt for a six year high, coming off the 200 day SMA (11.56) last week on very strong volume. It tested to end last week, forming the handle to its 5.5 month base. Nice bounce Monday, taking it toward the breakout, but volume was not there yet. Solid 9 to 5 accumulation in the pattern (9 up price weeks on rising volume to 5 down price weeks on rising volume) shows solid buying. Strong money flow as well, and it is heading higher. Want to see that volume come back in as it continues the break higher.
Volume: 5.613M Avg Volume: 4.027M
BUY POINT: $12.28 Volume=5M Target=$14.75 Stop=$11.78
POSITION: HUT DV - Apr. $12.50c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/hlth.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: Rebounded when its target was raised to 110. If it stalls and you have bought the calls back, look to sell them again.

AKAM: Another move higher but showing a doji after a week of upside moves on lower and lower volume. Likely to test but not in trouble.

CELG: Dumped lower but managed to recover to hold the 18 day EMA on the close. Where ti goes form here is the key.

GME: Doji at the 18 day EMA in a nice pullback.

GOOG: Still struggling but holding support above 475.

ISE: Bombay doors open.

MRVL: So much for that attempt.

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.

stock split
stock recommendation