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Begin part 3 of 3

THE PLAYS

Good movers: CRZO; FCX; WNR; CLF; QQQQ

New Plays:

Upside:

Play Date: 06/12/2007
ICE (Intercontinental Exchange--$148.98; -0.21; optionable)
http://biz.yahoo.com/p/i/ice.html
STATUS: Cup w/handle. We closed out our last positions in ICE out of an abundance of caution as it works through the handle of a 16 week base that is consolidating the strong 2006 run. Despite the market selling it is showing good upside volume and is not selling off; two important features in an overall weak market. Going to be patient and let it complete the handle and see if it shows us the breakout move.
Volume: 3.432M Avg Volume: 3.881M
BUY POINT: $151.32 Volume=5.8M Target=$173.95 Stop=$145.45
POSITION: IHH IJ - Sept. $150c (55 delta)
http://www.investmenthouse.com/ct/ice.html

Play Date: 06/12/2007
MA (MasterCard--$145.31; +3.71; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: Announced 5-2-07
STATUS: Test 18 day EMA. Holding gamely at the 18 day EMA (142) this week after an attempt to sell it off last Thursday. It rebounded the next session on even stronger volume, showing the buyers came back in. MA made us some great money on its last move and if it can hold this test and rebound on strong trade as it did Tuesday we will look to enter more positions. Nice breakout in May and this is the second test of the short term moving averages. There are typically 4 to 5 of these after a breakout, leaving MA plenty of upside if the market cooperates. Need to see that strong volume continue.
Volume: 5.082M Avg Volume: 2.872M
BUY POINT: $146.44 Volume=4.5M Target=$167.95 Stop=$140.65
POSITION: MAL JI - Oct. $145c (52 delta)
http://www.investmenthouse.com/ct/ma.html

Downside:

Play Date: 06/12/2007
AMR (AMR Corp.--$25.38; -0.75; optionable): American Airlines
http://biz.yahoo.com/p/a/amr.html
EARNINGS: Announced 4-18-07
STATUS: Put. AMR is in a continuing downtrend since peaking in January and February with a double top. It slid down the 10 and 18 day EMA through May and then rebounded to the 50 day EMA, coming up for air. Just as a stock will use the 10 and 18 day EMA as support as it rallies after a breakout, it will also use the 10 and 18 day EMA as resistance after a breakdown. Volume was up Tuesday as AMR broke down toward the lows it has held the past 6 weeks. If they give way it is heading lower, and our initial target may be conservative. A move to that target lands a 44%ish gain.
Volume: 9.096M Avg Volume: 8.121M
BUY POINT: $25.19 Volume=9M Target=$22.50 Stop=$25.78
POSITION: AMR TY - Aug. $27.50p (-58 delta)
http://www.investmenthouse.com/ct/amr.html

Play Date: 06/12/2007
CLX (Clorox--$63.96; -0.79; optionable): Cleaning products
http://biz.yahoo.com/p/c/clx.html
EARNINGS: Announced 5-2-07
STATUS: Put. CLX formed an umbrella top from late April to early June and then broke lower to the 200 day SMA (64.40). It tried to hold that key support level, but Tuesday it crashed through, crossing over to the dark side. The 200 day SMA is key as the big money either holds or folds at that level. Tuesday they were selling, though the volume was not huge (still below average). Still looks ripe to test that March low, filling a gap up at that point. A move to the target lands a 56%ish gain.
Volume: 871.8K Avg Volume: 1.178M
BUY POINT: $63.85 Volume=1.2M Target=$61.75 Stop=$64.45
POSITION: CLX SM - July $65p (-54 delta)
http://www.investmenthouse.com/ct/clx.html

Play Date: 06/12/2007
DIA (Diamonds Trust (DJ30)--$132.92; -1.32; optionable)
http://biz.yahoo.com/p/d/dia.html
STATUS: Head and shoulders. DIA mimics DJ30, and thus it has formed that head and shoulders with the weak right shoulder, an indication of a weaker ETF (or a stronger downside pattern). It still has the 50 day EMA (131.96) that it bounced off of last Friday, but the move higher was so long and it is so far above the February high we expect it to fall on through the 50 day EMA. A move to the target lands a 40%ish gain.
Volume: 20.118M Avg Volume: 10.807M
BUY POINT: $132.55 Volume=10M Target=$129.75 Stop=$133.12
POSITION: DAW TC - Aug. $133p (-43 delta)
http://www.investmenthouse.com/ct/dia.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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