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Begin part 3 of 3

THE PLAYS

Good Movers: ANST; ATHR; FALC; HLTH; ICON; TWGP; VCLK; WNR

New Plays:

Upside:

Play Date: 02/22/2007
ASCA (Ameristar Casinos--$34.14; +1.28; optionable): Resorts & casinos
http://biz.yahoo.com/p/a/asca.html
EARNINGS: 3-20-07
STATUS: Reverse head and shoulders breakout. ASCA gapped out of a 14 month double bottom in November and surged to 33. It then formed the current 11 week base to get some rest and set up for the next move, using the 50 day EMA (30.74) as support to set back up. Ready to spin the wheel for another new all-time high.
Volume: 558.917K Avg Volume: 316.782K
BUY POINT: $34.41 Volume=325K Target=$40.95 Stop=$32.38
POSITION: UWT FG - July $35c (52 delta) or UWT FF - July $30c (80 delta) &/or Stock
http://www.investmenthouse.com/cd/asca.html

Play Date: 02/22/2007
DIOD (Diodes--$39.12; +2.11; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/d/diod.html
EARNINGS: Reported 2-6-07
STATUS: Trend reversal. DIOD fell upon hard times starting September. It broke out of a 4.5 month base and rallied straight up, but fell into a September to January downtrend. It made a higher low the first three weeks of this month, trying to get over the 50 day EMA (36.94). Volume started to swell Tuesday and Wednesday, and Thursday it made the break, surging in price and volume through both the 50 day and 200 day SMA (38.33). We are willing to buy some positions as it continues higher. After this initial move it may come back to test the 200 day; that is often the case. If it does we will pick it up as it comes off that test as well.
Volume: 1.014M Avg Volume: 465.7K
BUY POINT: $39.45 Volume=500K Target=$45.45 Stop=$37.78
POSITION: DUH FH - June $40c (52 delta) or DUH FG - June $35c (78 delta) &/or Stock
http://www.investmenthouse.com/cd/diod.html

Play Date: 02/22/2007
SYK (Stryker--$63.45; +1.20; optionable): Medical instruments
http://biz.yahoo.com/p/s/syk.html
EARNINGS: Announced 1-25-07
STATUS: Flying plateau. Looking for SYK to make us some more money after this three week tight lateral move. It broke out from a 13 month double bottom in October and has rallied nicely. It needed a breather, but it was so strong that it did not give up any gains, instead holding steady over the 10 and 18 day EMA. Thursday volume surged and SYK started to break higher from its flat base. Looking to move in as SYK continues this advance.
Volume: 4.444M Avg Volume: 1.531M
BUY POINT: $63.58 Volume=1.7M Target=$72.95 Stop=$61.28
POSITION: SYK FL - June $60c (74 delta) &/or Stock
http://www.investmenthouse.com/cd/syk.html

Continuing ready to move:

Play Date: 02/15/2007
RVSN (Radvision--$22.13; -0.21; optionable): Telecom processing systems
http://biz.yahoo.com/p/r/rvsn.html
EARNINGS: Announced 2-8-07
STATUS: Breakout test. RVSN remains locked and loaded, easing back to test the 10 day EMA (22.00) after its strong earnings-induced break higher to start the month, a move that took RVSN out of an 11 week base. Money flow continues higher ahead of the stock price even as it dips to make this test. The test looks just about done and RVSN ready to make the break higher.
Volume: 67.417K Avg Volume: 142.079K
BUY POINT: $22.45 Volume=220K Target=$26.95 Stop=$21.38
POSITION: RJU FX - June $22.50c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/rvsn.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

CELG: Volume moved up to average as CELG came off the 90 day MA and pushed just past the 50 day EMA (54.67) on the close. Nice double bottom setting up a 9 week base. A move over 56.50 clears the 'hump' in the base.

GOOG: Tried to move through the 50 day SMA, and did so on the high but could not hold it to the close. Double top in January, a sell off, and now the recovery attempt. Key level here.

ISE: Volume is up above average as ISE starts off the 50 day EMA, showing a reverse head and shoulders at the bottom of its 12 week base. These patterns often set up at the bottom of a cup base and send it higher.

MRVL: Gapped up to hold the 200 day SMA. Needs to hold here and then a move higher.

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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