stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: BMC; CHDX; CRM; CROX; ICE; ILMN; MER; MNST; NYX; SIMO; WEBX; SBUX

Wednesday night play results:
MER: Nice move off the 50 day EMA continues
MS: Strong volume was well as MS gapped higher
NTLI: Still setting up the breakout.
SIMO: Strong volume break higher off the test and solid earnings after hours.

New Plays:

Upside:

Play Date: 02/01/2007
ACH (Aluminum Corp of China--$24.52; +1.98; optionable): Chinese aluminum
http://biz.yahoo.com/p/a/ach.html
STATUS: Double bottom. After the China scare earlier in the week when an official 'warned' of a bubble, those stocks are rebounding. ACH blasted higher Thursday on strong volume, clearing the 'hump' in the middle of its 6 week base that formed using the 50 day EMA on the lows as support. This is part of a larger 10 month cup with handle base, this smaller pattern being the handle. Ready to move in as it continues higher and then adding on a test.
Volume: 1.636M Avg Volume: 674.269K
BUY POINT: $24.68 Volume=700K Target=$29.65 Stop=$23.05
POSITION: ACH EX - May $22.50c (65 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/ach.html

Play Date: 02/01/2007
BITS (Bitstream--$10.33; -0.02; no options): Software for fonts, browsing, publishing.
http://biz.yahoo.com/p/b/bits.html
STATUS: Cup w/handle. Forming the handle to a nice 14 week base that used the 50 and 90 day MA as support. Nice rally last week as BITS moves up off the bottom of the base, volume rising to average and above as it moved. Working laterally the last couple of sessions, starting the handle. May take another session or two to finish working on the handle. Just going to let it finish and then move in on the break higher.
Volume: 82.425K Avg Volume: 121.719K
BUY POINT: $10.68 Volume=185K Target=$12.85 Stop=$9.93
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/bits.html

Play Date: 02/01/2007
GS (Goldman Sachs--$212.00; -0.16; optionable): Investment brokerage
http://biz.yahoo.com/p/g/gs.html
EARNINGS: 3-11
STATUS: Test breakout. Made us some nice money on the last couple of runs and now it has tested back, holding near support at the 18 day EMA (210.31) this week. Wednesday it bounced higher on strong volume and Thursday it tested, tapping the 18 day EMA on the low and rebounding to hold the 10 day EMA on the close. Looking for a strong move from here to start positions and squeeze out another run on this rally.
Volume: 5.961M Avg Volume: 5.231M
BUY POINT: $212.88 Volume=6.5M Target=$231.90 Stop=$209.55
POSITION: GPY GB - July $210c (57 delta) or GPY DB - July $210c (60 delta)
http://www.investmenthouse.com/cd/gs.html

Play Date: 02/01/2007
MON (Monsanto--$54.84; -0.25; optionable): Agricultural chemicals, genetic engineering, etc. Oh yes, and Round Up
http://biz.yahoo.com/p/m/mon.html
EARNINGS: 1-4-07
STATUS: Breakout test. Another stock that has made us some great money on its breakout run, MON is coming back to test the 10 day EMA (54.65) that is acting as support on this move. MON broke out from a 14 week double bottom with handle base in December, rallied and then tested the 50 day EMA. It is now making its second test of the 10 day EMA since bouncing off the 50 day. That still leaves the stock plenty of upside in this breakout run.
Volume: 3.918M Avg Volume: 3.218M
BUY POINT: $55.22 Volume=4.2M Target=$62.45 Stop=$54.24
POSITION: MON GK - July $55c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/mon.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: Still working around 85. Could take awhile to get it in a line again.

CELG: Nice break higher on strong volume. Stopped below the 50 day SMA (56.28) but looking solid. A break through there is a point to start taking some positions, and then adding to on a test that holds and starts to bounce again.

GOOG: Will have to see how it recovers from the close just over the 50 day EMA. Not a great response, but the numbers were vague.

WEBX: Wow. Big move and took some gain. Will let it run some more and if it does, we will take more options off the table when it stalls. Then let it test, hold and load up as it starts back 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.

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