stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: HMSY; TK; WNR; GS; SONC

New Plays:

Upside:

Play Date: 03/17/2007
AMSC (American Superconductor--$14.04; +0.54; optionable): High temp superconductor wires & power converters
http://biz.yahoo.com/p/a/amsc.html
EARNINGS: Announced 2-1-07
STATUS: Test breakout. Super conductors used to just make cool demonstrations in school but now there are practical applications. With the cost of generating electricity moving higher and higher, anything that can be done to preserve more of the power from source to end user is a boon. AMSC broke higher from a 3 year cup base starting mid-February. It surged to 14.50 and then needed a rest to set up for the next move. It has worked its way laterally the past three weeks, and last week it showed strong positive volume on Tuesday and Friday, both upside sessions. That shows the buyers coming in once more. That means AMSC is getting ready to transmit another break higher. Would like a super conductive move.
Volume: 572.809K Avg Volume: 309.293K
BUY POINT: $14.38 Volume=375K Target=$16.58 Stop=$13.38
POSITION: QAY GB - July $12.50p (71 delta) &/or Stock
http://www.investmenthouse.com/ct/amsc.html

Play Date: 03/17/2007
GLDN (Golden Telecom--$52.71; +2.93; optionable): Telecom and internet services in Russia
http://biz.yahoo.com/p/g/gldn.html
EARNINGS: 3-15-07
STATUS: Double bottom. Strong volume Friday as GLDN surged off the 90 day MA (47.60), its second test of that level this month. Strong earnings sent it higher and completed the breakout from this short double bottom. A strong run with the market from August to February, it corrected hard to form this pattern; the double bottom is the 'scare them out' of the base world. Nice, sharp up and down action and starting back up. Looking to take positions on the move higher and then again after it forms something of a handle and makes the next breakout.
Volume: 722.631K Avg Volume: 256.61K
BUY POINT: $53.12 Volume=385K Target=$63.75 Stop=$51.04
POSITION: QDV FK - June $55c (49 delta) or QDV FJ - June $50c (61 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/gldn.html

Play Date: 03/17/2007
NUAN (Nuance Communications--$14.26; +0.22; optionable): Voice recognition software
http://biz.yahoo.com/p/n/nuan.html
EARNINGS: 2-5-07
STATUS: Double bottom. NUAN made a quick two bottoms in the March selling, testing the February breakout from a large 9 month cup with handle. Rallied to 15 on the high and this is a nice 5 week base is setting up another move to a new 10 year high. Looking to take some positions as it continues breaking higher and then again on a test that forms a handle to the short pattern. Excellent technical pattern and solid fundamentals growth rates to go with it.
Volume: 5.209M Avg Volume: 3.956M
BUY POINT: $14.38 Volume=5.5M Target=$17.65 Stop=$13.77
POSITION: SSQ GV - July $12.50c (73 delta) &/or Stock
http://www.investmenthouse.com/ct/nuan.html

Play Date: 03/17/2007
ROCM (Rochester Medical--$18.30; -0.43; no options): Urinary continence products for extended & acute care markets
http://biz.yahoo.com/p/r/rocm.html
EARNINGS: Announced 1-23-07
STATUS: Double bottom w/handle. Fading back to test the strong early week move that broke it out of its 7 week double bottom that formed over the 50 day EMA (15.59). Consolidating a nice January to early February run, this is a nice pattern setting up for more upside. Likely to come back to test a bit more, but want to be ready to move in as it continues higher to a new all-time high. Excellent fundamentals growth rates and a strong technical pattern.
Volume: 245.739K Avg Volume: 283.818K
BUY POINT: From the Friday close: $18.65. Test the 10 day EMA (17.44): 18.05 on the rebound. Volume=425K Target=$22.45 Stop=$17.57
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/rocm.html

Play Date: 03/17/2007
SSYS (Stratasys--$39.97; -0.25; optionable): Rapid prototyping devices and 3-D printing systems
http://biz.yahoo.com/p/s/ssys.html
EARNINGS: Announced 2-15-07
STATUS: Breakout test. SSYS gapped higher in mid-February on its earnings report, clearing a solid 10 month cup with handle. This is the second test of that breakout, a nice easy test of the 10 day EMA (39.65) last week as the rest of the market struggled. Looks ripe for the next break higher. Some very strong fundamentals growth rates to go along with the strong pattern.
Volume: 192.141K Avg Volume: 139.317K
BUY POINT: $40.55 Volume=205K Target=$46.65 Stop=$39.41
POSITION: QQG FH - June $40c (56 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/ssys.html

Downside:

Play Date: 03/17/2007
AMP (Ameriprise Financial--$55.15; -0.36; optionable): Asset management
http://biz.yahoo.com/p/a/amp.html
EARNINGS: 1-25-07
STATUS: Head and shoulders. Nasty plunge lower Tuesday through the 90 day MA (56.51), tanking on heavy volume as it consummated the 10 week topping pattern. It bounced back Wednesday and Thursday but stalled at the 90 day MA on the interim highs. It turned back down Friday from that resistance, falling on much stronger, above average volume. Money flow is tanking ahead of price, and with this rollover to end last week, price is ready to follow it lower. A move to the target lands a 45%ish gain.
Volume: 2.28M Avg Volume: 1.243M
BUY POINT: $54.95 Volume=1.4M Target=$52.45 Stop=$55.55
POSITION: AMP QK - May $55p (-44 delta)
http://www.investmenthouse.com/ct/amp.html

Play Date: 03/17/2007
C (Citigroup--$49.53; -0.60; optionable): Banks, financial services
http://biz.yahoo.com/p/c/c.html
EARNINGS: 4-16-07
STATUS: Head and shoulders. You hear the one about the blond, the brunette and the guy with bad dandruff on the elevator? Maybe another time. C collapsed to end February, dropping hard out of a 9 week topping pattern, It tried to hold the 200 day SMA (50.65) through the first two weeks of March, but on Tuesday that attempt to consolidate gave way. It reversed Wednesday after another plunge to 48 and tested the 10 day EMA (50.04) Thursday and Friday. Friday it rolled back down on the strongest volume of the week. That looks like a failed test of near support. Ready to move in as it continues lower. A move to the target lands a 42%ish gain. Looking at April options as they deliver the best bang for the buck and the stock is already turning lower.
Volume: 30.816M Avg Volume: 19.949M
BUY POINT: $49.39 Volume=22M Target=$48.12 Stop=$50.08
POSITION: C PJ - Apr. $50p (-51 delta)
http://www.investmenthouse.com/ct/c.html

Play Date: 03/17/2007
PSA (Public Storage, Inc.--$95.79; -1.68; optionable): Storage facilities
http://biz.yahoo.com/p/p/psa.html
EARNINGS: Announced 2-27-07
STATUS: Head and shoulders. PSA broke higher in early February, but it could not store the gains. It turned over and fell on rising trade. It tried to recover then rolled over on strong trade, plummeting through the 90 day MA (99.53). It rebounded two weeks back, but it could not move through the 90 day MA. It fell Tuesday, held 95 again, but made a higher low to end the week, fading Friday from a test of the 10 day EMA (97.71). Money flow is falling faster than the stock price, but it looks as if PSA is ready to play catch up with it this coming week. A move to the target lands a 42%ish gain.
Volume: 1.334M Avg Volume: 986.632K
BUY POINT: $95.45 Volume=1.5M Target=$92.00 Stop=$96.25
POSITION: PSA QS - May $95p (-40 delta)
http://www.investmenthouse.com/ct/psa.html

CONTINUING PLAYS:

Upside: Some stellar plays ready to move.

CNMD
FORM
IVN
PCLN
SIGA
SPN

Downside:

Play Date: 03/15/2007
AEO (American Eagle Outfitters--$29.89; -0.09; optionable): Apparel stores
http://biz.yahoo.com/p/a/aeo.html
EARNINGS: 5-22-07
STATUS: Put. Doji below the 10 day EMA (30.14) Friday as AEO struggles to hang on below near resistance after rebounding to test it following the early March collapse. Looking for a turn back down this week. To recap: AEO recently moved to the NYSE, but that is not helping it a whole lot. It has formed a 15 week head and shoulders top and broke lower to start March, falling to the 200 day SMA (28.19) on the low. It bounced and tried to recover support at the 50 and 90 day MA, but is failing, sliding lower along the 18 day EMA (30.44) last week. Looks ready to follow the weakening money flow lower. A move to the target lands a 40%ish gain.
Volume: 2.316M Avg Volume: 4.084M
BUY POINT: $29.86 Volume=4.2M Target=$28.11 Stop=$30.39
POSITION: AEO QF - May $30p (-43 delta)
http://www.investmenthouse.com/ct/aeo.html

Play Date: 03/12/2007
CCU (Clear Channel Communications--$35.16; -0.07; optionable): Broadcast radio
http://biz.yahoo.com/p/c/ccu.html
EARNINGS: 2-23-07
STATUS: Put. Rebounded in the second half of the week after a higher volume drop on Monday. Could not hold a move through the 10 day EMA (35.32) Thursday and showed a doji below that near resistance Friday. Money flow is turning over once more as well. Looking to move in as it heads back down.
Volume: 6.637M Avg Volume: 6.029M
BUY POINT: $34.84 Volume=6M Target=$33.38 Stop=$35.31
POSITION: CCU PG - Apr. $35p (-64 delta)
http://www.investmenthouse.com/ct/ccu.html

Good Investing!
Jon L. Johnson and your Technical Traders Report Team

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 in 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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