stock recommendation, stock investment information

Begin part 3 of 3

THE PLAYS

Good movers: HURN; ICE; MR; NTGR

New Plays:

Upside:

Play Date: 05/22/2007
ATHR (Atheros Communications--$29.34; +0.56; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/athr.html
EARNINGS: Announced 4-30-07
STATUS: Test breakout. ATHR broke out from a short 5 week double bottom base in April, a base that was part of a larger 13 month cup with handle. It rallied to 30 and tested back last week to the 50 day EMA (27.04), finding support at that key level. Volume jumped back above average the past three sessions as it found support and started higher. It cleared the prior rally closing high Monday, and we are looking to move in as it continues the run.
Volume: 1.839M Avg Volume: 1.561M
BUY POINT: $29.58 Volume=2.2M Target=$35.50 Stop=$28.05
POSITION: QRA IE - Sept. $25c (81 delta) &/or Stock
http://www.investmenthouse.com/cd/athr.html

Play Date: 05/22/2007
BHI (Baker Hughes--$82.21; -0.28; optionable): Oil and gas service company
http://biz.yahoo.com/p/b/bhi.html
EARNINGS: 4-25-07
STATUS: Double bottom w/handle. BHI is working on a three week handle to a much larger 12 month double bottom with handle base. The handle itself is a short double bottom with handle pattern. Good bounce last week to form the right side of the pattern as it bounced off the 18 day EMA, and now a modest dip the past two sessions, working on the handle within a handle. It likely needs another day or two to test and set up the break higher, but we like what we see and want to be ready when it makes the break higher.
Volume: 3.599M Avg Volume: 4.955M
BUY POINT: $83.75 Volume=7M Target=$96.50 Stop=$80.95
POSITION: BHI JP - Oct. $80c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/bhi.html

Play Date: 05/22/2007
SUNH (Sun Healthcrea Group--$14.15; +0.05; optionable): Long-term healthcare facilities
http://biz.yahoo.com/p/s/sunh.html
EARNINGS: Announced 5-3-07
STATUS: Breakout test. Very nice orderly test the past two weeks of a strong early May breakout from a 12 week cup with handle base. The move took SUNH to a 4.5 year high. After that it is doing some backing and filling, and has come back to fully test the breakout, holding support at 14 and the 10 day EMA. Nice doji Tuesday on rising, above average volume that saw SUNH reach lower toward the 18 day EMA and then rebound to close flat. Looking for that volume to continue as SUNH continues higher off of this breakout support.
Volume: 646.742K Avg Volume: 404.752K
BUY POINT: $14.38 Volume=600K Target=$17.45 Stop=$13.78
POSITION: QUO IV - Sept. $12.50c (71 delta, 269 OI) &/or Stock
http://www.investmenthouse.com/cd/sunh.html

Downside:

Play Date: 05/22/2007
CTSH (Cognizant Technology--$78.69; +0.27; optionable): Business software
http://biz.yahoo.com/p/c/ctsh.html
EARNINGS: Announced 5-2-07
STATUS: Put. CTSH gapped lower on its earnings report to start the month, gapping below the 90 day MA near 87.50. It tumbled through the 200 day SMA (80.73) as well. When a stock falls through the 200 day SMA that means none of the big buyers want to support it anymore; indeed, they are still selling it. CTSH managed a relief bounce up to test that breach, tapping at the 200 day on the Tuesday high before rolling over to close flat. That kept it below that key resistance, showing sellers were still selling shares after a bounce. Looking to move in as it continues the break lower, following very weak money flow. A move to our target lands a 41%ish gain.
Volume: 2.139M Avg Volume: 2.091M
BUY POINT: $78.48 Volume=2.3M Target=$75.00 Stop=$79.45
POSITION: UPU SP - July $80p (-50 delta)
http://www.investmenthouse.com/cd/ctsh.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

AAPL: Continues a low volume assent that just won't quit. The last strong volume was on a shakeout and reversal session and before that a selling session. No one wants to get in front of it and sell it so it just drifts higher.

AKAM: Unable to clear the 18 day EMA and fading on some stronger volume Tuesday. May be were it rolls back down.

CELG: Gapped higher yet again, clearing a week long consolidation on some stronger volume. Another stock that won't quit.

GOOG: Trying to get something started with this test of the 50 day EMA, gapping higher Tuesday. Still work to do, but improving.

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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