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Begin part 3 of 3

THE PLAYS

Good movers: AH; BDX; BEAV; BLUD; BTU; CROX; OO; OII; MA; SUN; VMSI; VTIV; WFR

New Plays:

Upside:

Play Date: 05/03/2007
FDO (Family Dollar Stores--$32.94; +0.01; optionable):
http://biz.yahoo.com/p/f/fdo.html
EARNINGS: 6-28-07
STATUS: Test breakout. FDO is in that group of small discount stores that sell items for cheap. They have been performing better, quite a bit better. FDO broke higher from a 12 week double bottom with handle base Tuesday on very strong trade, then side-stepped the past two sessions on lower, below average volume. Good test of the break higher. Strong money flow is leading the way up, and when FDO resumes the move on stronger trade that is our entry point.
Volume: 1.509M Avg Volume: 1.748M
BUY POINT: $33.35 Volume=1.8M Target=$38.45 Stop=$32.08
POSITION: FDO JF - Oct. $30c (75 delta) &/or Stock
http://www.investmenthouse.com/ci/fdo.html

Play Date: 05/03/2007
GVA (Granite Construction--$63.03; +2.33; optionable): Heavy construction
http://biz.yahoo.com/p/g/gva.html
EARNINGS: Announced 4-25-07
STATUS: Cup w/handle. Jumped on its earnings but then sold off Monday in the market selling. It managed to hold near support at the 10 day EMA, worked laterally and then broke higher Thursday on strong volume, the strongest of the move. That is a positive reaffirmation of that breakout attempt last week. Looks ready to continue the breakout from its 7 month base, moving to a new high as it does.
Volume: 1.382M Avg Volume: 690.781K
BUY POINT: $63.61 Volume=750K Target=$73.45 Stop=$59.95
POSITION: GVI IL - Sept. $6Oc (71 delta) &/or Stock
http://www.investmenthouse.com/ci/gva.html

Play Date: 05/03/2007
WYE (Wyeth--$56.66; +0.83; optionable): Drugs
http://biz.yahoo.com/p/w/wye.html
EARNINGS: Announced 7-19-07
STATUS: Breakout test. WYE enjoyed a strong run the first two weeks of April as it cleared its 23 week double bottom pattern and rallied close to 57. Strong move and it needed a breather. It spent the past three weeks testing, holding over near support at the 18 day EMA on the test. Thursday WYE jumped on a very nice volume surge. That is the move you look for to indicate the test is over and the next move in the breakout is on. Looking to move in as WYE continues higher on solid trade.
Volume: 10.071M Avg Volume: 6.722M
BUY POINT: $57.05 Volume=6.8M Target=$65.95 Stop=$55.11
POSITION: WYE JY - Oct. $57.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/wye.html

New buy point on current position:

Play Date: 05/03/2007
NVDA (Nvidia--$33.47; +0.62; optionable): Graphics semiconductors
http://biz.yahoo.com/p/n/nvda.html
EARNINGS: Cup w/handle. NVDA is setting up a nice new buy point, working laterally the past week after the nice break higher over the 90 day MA (32). It will likely take a couple more sessions to finish the lateral handle and set up the next break higher, and the earnings Thursday might do that. Long time; looks as if it will try and show us the break higher before then.
STATUS:
Volume: 8.337M Avg Volume: 11.362M
BUY POINT: $33.88 Volume=15M Target=$38.95 Stop=$32.48
POSITION: UVA IZ - Sept. $32.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/nvda.html

Downside:

Play Date: 05/03/2007
JCP (J.C. Penney--$79.19; -0.51; optionable): Department stores
http://biz.yahoo.com/p/j/jcp.html
EARNINGS: Third week of May
STATUS: Put. JCP made a low volume broad top in late March and April, at the same time making a lower high below the February peak. It ended the month with a nasty break lower below the 90 day MA. It bounced just modestly Tuesday and then started to fade again Wednesday and Thursday. Volume was still low Thursday but it was higher. Looking to move in as JCP continues lower. A move down tot the target lands a 42%ish gain.
Volume: 2.012M Avg Volume: 2.416M
BUY POINT: $79.05 Volume=2.5M Target=$76.25 Stop=$80.74
POSITION: JCP RP - June $80p (-53 delta)
http://www.investmenthouse.com/ci/jcp.html

Good Investing!
Jon L. Johnson and your IH Alerts 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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