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Begin part 3 of 3

THE PLAYS

Good movers: BRCD; AEOS; BEBE; HGT

New Plays:

Upside: A few more that held up well and look ready to move in the market rebound.

Play Date: 03/05/2007
ACL (Alcon, Inc.--$123.65; +0.92; optionable): Contact lens supplies, etc.
http://biz.yahoo.com/p/a/acl.html
STATUS: Test 50 day EMA. ACL gapped higher in early February on strong earnings, breaking out from a 5 month reverse head and shoulders that was part of a larger 15 month base. It rallied over 130 on the move and is testing. It was very stingy with its gains but then sold down to the 50 day EMA (121.33) in the market selling. Volume remained low on the move, indicating no real dumping, just moving lower in sympathy with the market. Volume was up Monday as it started to bounce off this level. Can make a nice, quick run and land us some solid gain in a rebound with the market.
Volume: 471.2K Avg Volume: 503.487K
BUY POINT: $125.05 Volume=650K Target=$135.00 Stop=$121.18
POSITION: ACL EE - May $125c (54 delta)
http://www.investmenthouse.com/ci/acl.html

Play Date: 03/05/2007
GAP (Great Atlantic & Pacific Tea--$32.50; +1.64; optionable): A&P stores, etc.
http://biz.yahoo.com/p/g/gap.html
STATUS: Test breakout. Strong volume Monday as GAP jumped off an 18 day EMA test on news of another acquisition. This is the second test of the breakout from a 10 month cup with handle. Big surge on volume in mid-February, a test of the 18 day EMA, another surge before testing back with the market last week. Nice quick test and rebounding. Ready to move in as it continues higher from here. Solid stock and even though it is a defensive play that is good for this market, it is also a stock that can cover some real estate.
Volume: 1.96M Avg Volume: 423.985K
BUY POINT: $32.82 Volume=450K Target=$37.75 Stop=$30.98
POSITION: GAP HF - Aug. $30c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/gap.html

Play Date: 03/05/2007
ICE (Intercontinental Exchange--$137.11; -1.47; optionable)
http://biz.yahoo.com/p/i/ice.html
STATUS: Test 50 day EMA. ICE made us some strong coin on its last run, moving up the 10 and 18 day EMA on through the end of February. It rallied on into the selling, and after hitting 167 it gapped lower Tuesday in the market sell off. It tried to hold but slipped on down to the 50 day EMA (135.83) Friday, showing a nice tight doji Monday right on that level. Exchanges are doing a hefty amount of business with this selling and that means lots of commissions. Looking for a bounce off this doji to give us an entry point for a rebound that may not make us the sack full it made before, but it has plenty of room to run upside.
Volume: 8.37M Avg Volume: 3.923M
BUY POINT: $138.68 Volume=6M Target=$160.00 Stop=$134.68
POSITION: ICE FX - June $140c (57 delta)
http://www.investmenthouse.com/ci/ice.html

Play Date: 03/05/2007
VSEA (Varian Semiconductor--$46.20; -0.09; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
STATUS: Breakout test. VSEA has established itself as the leader in its sector. Strong move higher in mid-February on some solid earnings news broke VSEA out from a short 7 week base. Nice rally to 50, and you would expect it to get roughed up in the selling. It was lower but showed excellent relative strength, closing near the 18 day EMA on Friday and just above some support at 46. Gapped a bit lower Friday but rebounded close to flat. Looking for this level to hold and for VSEA to bounce from here as the overall market posts a relief rally.
Volume: 1.237M Avg Volume: 1.48M
BUY POINT: $48.05 Volume=2M Target=$54.95 Stop=$45.31
POSITION: UES EI - May $45c (61 delta, low OI) or UES HJ - Aug. $50c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/vsea.html

Play Date: 03/05/2007
WEBX (Webex Communications--$44.00; +1.99; optionable): Web conferencing, etc.
http://biz.yahoo.com/p/w/webx.html
STATUS: Breakout test. WEBX gapped higher to start February, gapping out of a 19 week base on huge trade and huge earnings. It rallied to 49 and was holding up quite nicely until the selling hit. As a big mover it was a target and sold off down to the 50 day EMA. Volume was up but not huge on the selling. Monday it gapped a bit lower, right to the 50 day (41.52) and then started back up on the best volume in a month. The buyers used this to get back in. Like it enough to move in as it continues this rebound.
Volume: 1.344M Avg Volume: 850.873K
BUY POINT: $44.58 Volume=950K Target=$50.45 Stop=$42.22
POSITION: UWB FI - June $45c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/webx.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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