stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: BEAV; HLTH; LGBG; MDRX; PAY; VCLK

Monday night play results:
ILMN: Gapped higher on continued above average volume.
OII: Moving up off the 50 day EMA on continued average volume.
SLE: Gapped higher but faded to close flat.
NVLS: Gapped lower but bounced back to close flat.

New Plays:

Upside:

Play Date: 01/23/2007
CHDX (Chindex Intl.--$24.01; +3.01; no options): Medical equipment, healthcare services in China, Hong Kong
http://biz.yahoo.com/p/c/chdx.html
STATUS: Cup w/handle breakout. Huge volume Tuesday as CHDX surged out of its 9 week base that formed using the key 50 day EMA (18.65) as support. The move is taking it to a new all-time high and it is doing it with style. Looking to move in on a continued move as this type of breakaway can really run, then adding to positions as it makes the test and starts to rebound from that.
Volume: 683.942K Avg Volume: 159.768K
BUY POINT: $24.21 Volume=200K Target=$28.95 Stop=$22.32
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/chdx.html

Play Date: 01/23/2007
CVA (Covanta Holding--$23.25; +0.96; optionable): Waste disposal, energy and specialty insurance services.
http://biz.yahoo.com/p/c/cva.html
STATUS: Ascending triangle. Surging higher Tuesday as CVA broke out from a 13 week base formed using the 50 and 90 day MA as support. Excellent pattern that is moving to a new all-time high. Looking to move into positions on a continue move higher and then after a successful test of this initial move.
Volume: 2.435M Avg Volume: 1.042M
BUY POINT: $23.48 Volume=1M Target=$28.32 Stop=$21.84
POSITION: CVA FX - June $22.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/cva.html

Play Date: 01/23/2007
ICE (Intercontinental Exchange--$129.50; +5.40; optionable)
http://biz.yahoo.com/p/i/ice.html
STATUS: Test 18 day EMA. Tested back the past two weeks following a big surge to start the year. It held near support again as it continues higher up the 18 day after a September breakout. Looking to squeeze one more surge out of ICE. Good start Tuesday.
Volume: 2.675M Avg Volume: 3.111M
BUY POINT: $129.91 Volume=3.5M Target=$149.90 Stop=$124.95
POSITION: ICE FW - June $135c (49 delta) or ICE CV - Mar. $130c (54 delta)
http://www.investmenthouse.com/cd/ice.html

Play Date: 01/23/2007
ININ (Interactive Intelligence--$19.83; +0.63; optionable): Business software for communications automation, etc.
http://biz.yahoo.com/p/i/inin.html
STATUS: Test 50 day EMA. Broke out from a 13 week base in October and rallied up the 18 day EMA (20.26). Peaked near 22 and then faded back the past two weeks for a deeper test to the 50 day EMA (19.11). Strong stocks will rally up the 18 day EMA and then periodically test the 50 day to set the move up once again. Nice hold of the 50 day and looking for some more volume as it continues this bounce up through the 18 day EMA.
Volume: 245.345K Avg Volume: 401.99K
BUY POINT: $20.31 Volume=550K Target=$24.45 Stop=$18.89
POSITION: NQX FD - June $20c (60 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/inin.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: Doji over the 50 day EMA on rising trade. Watching this to see if it is going to jump from here.

GOOG: Down to the 50 day EMA on the close and then down about 8 points after hours on the YHOO announcement of a new search & ad set up.

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 recommendation
stock option