stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: ATHR; BIDU; BRY; CAT; CRZO; FCX; FISV; GRMN; HC; MA; RIG; SUN; WNR

New Plays:

Upside:

Play Date: 06/13/2007
ALJ (Alon USA Energy--$41.71; +1.32; optionable): Oil and gas refining
http://biz.yahoo.com/p/a/alj.html
EARNINGS: Announced 5-10-07
STATUS: Breakout test. ALJ broke higher to start June, clearing a short 8 week double bottom with handle base. That was the handle of a larger 11 month double bottom with handle. It used the recent market selling to come back and test, holding the 18 day EMA (40.17) on the low and then rebounding Wednesday on rising though still below average volume. Excellent action and an excellent pattern. Looks ready for the next break higher; just needs a bit more volume.
Volume: 381.4K Avg Volume: 500.052K
BUY POINT: $42.08 Volume=500K Target=$50.50 Stop=$40.04
POSITION: ALJ IH - Sept. $40c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/alj.html

Play Date: 06/13/2007
FFIV (F5 Networks--$80.02; -0.23; optionable): Internet network application traffic solutions
http://biz.yahoo.com/p/f/ffiv.html
EARNINGS: 7-25-07
STATUS: Ascending base. Taking another look at FFIV as makes a higher low at the 10 day EMA (79.50), setting up for the break to a new 7 year high. FFIV gapped higher on earnings in late April and set up this current 7 week lateral move. Did not give up much ground in the selling, and just waiting for the break higher on a return to volume. Solid leader that held the line and is ready to move up again.
Volume: 621.328K Avg Volume: 1.222M
BUY POINT: $81.65 Volume=1.8M Target=$94.45 Stop=$79.31
POSITION: FLK JP - Oct. $80c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/ffiv.html

Play Date: 06/13/2007
IPAR (Inter Parfums--$28.72; +1.81; no options): Perfumes, etc.
http://biz.yahoo.com/p/i/ipar.html
EARNINGS: Announced 5-9-07
STATUS: Flying plateau. Blasted higher on Wednesday with a big volume surge after an upgrade. This 6 week lateral move consolidated the big earnings gap higher in May that took IPAR out of a 6.5 month cup with handle base. Nice consolidation that did not give up any ground and now breaking higher once more. Ready to move in as it continues the break higher. A solid stock that has a lot of momentum and a lot of backing right now.
Volume: 267.156K Avg Volume: 129.951K
BUY POINT: $28.91 Volume=200K Target=$34.75 Stop=$26.89
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ipar.html

Play Date: 06/13/2007
TRA (Terra Industries--$20.71; +1.29; optionable): Agricultural chemicals
http://biz.yahoo.com/p/t/tra.html
EARNINGS: Announced 7-26-07
STATUS: Ascending base. After a long, steady run from October through February, TRA got a bit choppier. Instead of selling off, however, it continued to trend higher up the 50 day EMA (18.86), forming a 15 week ascending base. It made a higher low the past week just over the 50 day and then surged Wednesday on very strong volume. Excellent action and ready to move in as it continues the move to a new all-time high. Nice.
Volume: 3.274M Avg Volume: 2.12M
BUY POINT: $21.03 Volume=2.2M Target=$25.25 Stop=$19.56
POSITION: TRA ID - Sept $20c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/tra.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.

Need some more input on replacing ISE (buy out), NYX (bomb out), and DRIV.

AAPL, AKAM, CELG, DRIV, GME, GOOG, ISE, MA, PCLN, NVDA, NYX

AAPL: Still fading back, undercutting the 18 day EMA on the low and rebounding to close at the 18 day EMA. Strong volume on the selling, but holding at a key point. If it does not it is likely to head closer to 110.

CELG: Still trying to put together a bounce off the 90 day SMA.

GME: Nice hold at the 18 day EMA, working laterally on low volume. Just looking for some stronger volume as it breaks higher from here. If we see that it is a buy.

GOOG: Tapped the 18 day EMA on the low and rebounded on volume. This looks to be the test, the shakeout from the strong run. A rebound on continued volume is a new buy point.

MA: Sweet move.

PCLN: Volume has jumped the past two sessions as PCLN has recovered. Setting up for a nice break over 62.50.

NVDA: Steady run up the 10 day EMA.

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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