stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: CROX; ESV; HAL; SINA; SPN; SWN; UTX

New Plays:

Upside:

Play Date: 05/17/2007
ACGY (Acergy S.A.--$21.47; +0.12; optionable): Seabed to surface offshore drilling services
http://biz.yahoo.com/p/a/acgy.html
EARNINGS: 7-11-07
STATUS: Ascending base. This 7 week base is consolidating the late March breakout from an 18 week reverse head and shoulders base. The move took it to a new high. Now it is working higher, using the 50 day EMA (20.73) as support as it sets up for the move after hitting the new high. Nice strong volume Wednesday as ACGY tapped the 50 day EMA on the low and bounced sharply. Looks ready to move higher for the next break.
Volume: 403.584K Avg Volume: 421.355K
BUY POINT: $21.88 Volume=600K Target=$26.45 Stop=$20.62
POSITION: QLS HD - Aug. $20c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/acgy.html

Play Date: 05/17/2007
AMT (American Tower--$40.65; -0.09; optionable): Cell towers and infrastructure
http://biz.yahoo.com/p/a/amt.html
EARNINGS: Announced 5-7-07
STATUS: Breakout test. AMT looks as if it is starting to form a handle to its 12 week pattern after a strong price and volume break higher the past week. It faded back Thursday on below average volume. May take a few days to form the handle, but it was explosive on the last move higher, and we need to be ready to move in if it starts back up from here.
Volume: 2.643M Avg Volume: 2.565M
BUY POINT: $41.21 Volume=3M Target=$47.50 Stop=$40.11
POSITION: AMT JH - Oct. $40c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/amt.html

Play Date: 05/17/2007
BCSI (Blue Coat Systems--$38.27; -0.43; optionable): Security software
http://biz.yahoo.com/p/b/bcsi.html
EARNINGS: 5-29-07
STATUS: Cup w/handle. Strong volume Tuesday and Wednesday as BCSI surged but then closed off the high. Looks as if it could be forming a handle to its 9 week cup base, setting up for a breakout. This little cup is acting as the handle to a much larger 19 month cup with handle base. Nice set up and it has the volume. Now we wait for it to pull back and set up the next break higher.
Volume: 306.72K Avg Volume: 340.053K
BUY POINT: $38.88 Volume=500K Target=$45.95 Stop=$36.57
POSITION: IYU JG - Oct. $35c (68 delta) &/or Stock
http://www.investmenthouse.com/cd/bcsi.html

Play Date: 05/17/2007
SMOD (SMART Modular Technologies--$14.48; +0.01; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/s/smod.html
EARNINGS: Late June
STATUS: Breakout test. SMOD broke higher last week, clearing a 15 week cup base and moving to a new all-time high. It has tested, showing a tight doji Thursday on the 10 day EMA (14.44). That holds the breakout and is typically where you want to see a strong stock test the breakout. Nice fundamentals to go along with this strong pattern. Very low, below average volume the past two sessions as it held the 10 day EMA. Looking for volume to return as it breaks back higher and continues the breakout move.
Volume: 236.898K Avg Volume: 435.95K
BUY POINT: $14.95 Volume=625K Target=$17.95 Stop=$14.08
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/smod.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, PCLN, NVDA, NYX

AKAM: What it does at the test of the 10 day EMA at 44 will tell us a lot about this rebound attempt.

MA: Very nice lateral consolidation at the 10 day EMA, now working on low trade.

NVDA: Could not carry through with the Wednesday rebound, but very low volume as it faded. Still in excellent shape.

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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