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Begin part 3 of 3

THE PLAYS

Good movers: DXPE; ESV; IOC; NVEC; OMCL; RIG; AEO; CTSH

New Plays:

Upside:

Play Date: 05/23/2007
FCX (Freeport McMoran--$73.75; +2.40; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
EARNINGS: Announced 4-25-07
STATUS: Ascending base. FCX broke out from an 11 month base in late March and rallied on up to 72. Nice 12 stick run. It made it to the April and May 2006 highs and stalled. That slipped it into the current 6 week base as FCX makes some higher lows along the 18 day EMA (71.25). Looks as if it made its last one last Thursday, reversing off some selling on rising volume. Wednesday it was bouncing to a new closing high on this move on even better, much better, trade. Money flow is running higher ahead of price. Looking quite good here.
Volume: 17.435M Avg Volume: 11.763M
BUY POINT: $74.05 Volume=12M Target=$85.00 Stop=$71.11
POSITION: FCX HN - Aug. $70c (67 delta) or FCX KO - Nov. $75c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/fcx.html

Play Date: 05/23/2007
OMNI (Omni Energy Svc.--$11.48; +0.52; optionable): Oil and gas services in Gulf of Mexico (seismic, environmental services, etc.)
http://biz.yahoo.com/p/o/omni.html
STATUS: Ascending triangle. OMNI is in a big 11 month triangle. It shot higher on 5-17 when it raised its guidance. That took it to the December high at 11.75ish, roughly the top of the pattern. Strong volume on that move and then a low volume side-step Monday and Tuesday. Wednesday OMNI was moving back up with a sharp gain on a jump in volume back above average. Money flow is surging higher ahead of price, and OMNI is ready to make the break from this nice accumulation pattern.
Volume: 694.616K Avg Volume: 498.29K
BUY POINT: $11.69 Volume=750K Target=$14.00 Stop=$10.98
POSITION: QOC HB - Aug. $10c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/omni.html

Play Date: 05/23/2007
TIE (Titanium Metals--$36.21; -0.17; optionable): Industrial metals
http://biz.yahoo.com/p/t/tie.html
EARNINGS: Announced 5-7-07
STATUS: Double bottom w/handle. Back on the report already after testing and holding the 50 day EMA (35.79) the past two sessions. Volume jumped Wednesday as TIE tried to make the break higher but fell back in the afternoon market selling. Despite that fade we still really like the pattern, a nice 14 week base that used the 90 day MA on the lows of the two legs as support; that shows the big money stepping in. Now that it has made the test we are looking for it to make the break higher and finally show us the breakout move.
Volume: 3.62M Avg Volume: 2.366M
BUY POINT: $38.11 Volume=3.2M Target=$46.00 Stop=$35.68
POSITION: TIE IG - Sept. $35c (68 delta) &/or Stock
http://www.investmenthouse.com/cd/tie.html

Downside:

Play Date: 05/23/2007
SBUX (Starbucks--$28.89; -0.12; optionable): Coffee, pastries, music, coffee makers. Next week maybe it will offer counseling (addiction counseling)
http://biz.yahoo.com/p/s/sbux.html
EARNINGS: 8-1-07
STATUS: Put. Going to the well again with Starbucks. It has made us a lot of money on the downtrend since its sales started to decline. Good things were expected of it last earnings in early May, and it was up shortly after the announcement and then rolled over for another run downside. It bottomed on that move last week and rebounded. It tapped at the 18 day EMA (29.57) on the Monday and Tuesday highs but then faded back down. Key because it was unable to break back above lows from August 2006 and March 2007 that marked significant bounces. That means it is likely heading lower from here. Looking for a continued move lower from this last test to give us the buy point. A move to the initial target lands a 50%ish gain.
Volume: 9.544M Avg Volume: 12.807M
BUY POINT: $28.75 Volume=13M Target=$27.25 Stop=$29.32
POSITION: SQX SF - July $30p (-59 delta)
http://www.investmenthouse.com/cd/sbux.html

Play Date: 05/23/2007
TTEC (Teletech Holdings--$33.90; -0.50; optionable): Front to back office outsourced solutions
http://biz.yahoo.com/p/t/ttec.html
EARNINGS: Announced 5-9-07
STATUS: Put. Big rounded top the past 12 weeks looks to be the top of this strong run from July 2006. This last part of the move gapped higher in early February (earnings) but could not get a lot of volume as it continued higher. Peaked in early April, and then this month the earnings could not deliver any upside. The stock plunked down to the 90 day MA (34.28) on that news. It has tried to skate laterally the past week and hold this support, the last line of defense from filling that February gap, but it is slipping. Wednesday it fell back below the 90 day on rising though still below average volume. Looks as if TTEC is going to fill the gap from 27.50. Our initial target is not that ambitious. A move to that level lands a 50%ish gain.
Volume: 750.857K Avg Volume: 1.005M
BUY POINT: $33.75 Volume=1M Target=$31.25 Stop=$34.35
POSITION: QTC SG - July $35p (-54 delta)
http://www.investmenthouse.com/cd/ttec.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: Turned lower from the 18 day EMA test. Sharp price drop though volume did not spike up with it.

GME: Thumped down to the 10 day EMA on strong volume. If the volume was lower we would like it more for a new position. Will see how this test pans out.

PCLN: Gapped higher as its guidance keeps the fire lit under the stock, but it turned over to close at the session low. Really ragged pattern here. Will see how it tests this move and decide if it is worth some new money.

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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