us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Upside:

Play Date: 10/17/2007
ALGN (Align Tech--$28.14; +0.98; optionable): Medical appliances (transparent braces)
http://biz.yahoo.com/p/a/algn.html
EARNINGS: 10-24-07
STATUS: Reverse head and shoulders. ALGN gapped higher Wednesday on strong volume as it tried the breakout from its 12 week base that formed just below a new all-time high. We were watching the pattern develop, and that strong volume caught our attention. It could not hold the move on Wednesday what with the market up and down and back up, but we like the pattern and the action, looking for the continued break to the upside to give us the buy point.
Volume: 2.513M Avg Volume: 1.193M
BUY POINT: $28.62 Volume=1.3M Target=$34.38 Stop=$26.89
POSITION: CUA AE - Jan. $25c (71 delta) &/or Stock
http://www.investmenthouse.com/cd/algn.html

Play Date: 10/17/2007
AMSC (American Superconductor--$24.90; +0.71; optionable): Power electronic converters, high temperature superconductor wires
http://biz.yahoo.com/p/a/amsc.html
EARNINGS: 11-8-07
STATUS: Cup with handle. Nice surge to start the month took AMSC off of its low and formed the right side of its 10 week base. It peaked just over a week ago and has come back on low volume to test the move, holding at near support at the 10 day EMA (24.21), showing a nice tight doji at that level Wednesday. Excellent action on this test is setting up for a breakout to a new 7 year high.
Volume: 398.941K Avg Volume: 748.183K
BUY POINT: $26.05 Volume=1.1M Target=$31.32 Stop=$24.23
POSITION: QAY AE - Jan. $25c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/amsc.html

Play Date: 10/17/2007
CTDC (China Technology Development--$9.27; +0.46; no options): IT services in China
http://biz.yahoo.com/p/c/ctdc.html
STATUS: Breakout test. CTDC surged higher to start the month, rising the first two weeks. It has since tested, coming back to the 10 day EMA (9.08), showing a doji at that level on Wednesday as volume, after a low volume test, started back up. Looks ready to resume the move. This is part of a very large 2 year double bottom, and this test is giving us a great entry point on this up and comer.
Volume: 1.648M Avg Volume: 1.369M
BUY POINT: $9.76 Volume=2M Target=$11.95 Stop=$9.11
POSITION: - Stock (options have too few OI)
http://www.investmenthouse.com/cd/ctdc.html

Play Date: 10/17/2007
CTRP (Ctrip.com International--$52.14; +3.15; optionable): Chinese travel
http://biz.yahoo.com/p/c/ctrp.html
EARNINGS: 11-7-07
STATUS: Breakout test. Going to the well on this one again as CTRP tests the big September breakout from its 10 week double bottom with handle base. It surged up close to 55 and then tested, but then it dumped lower last Thursday, bouncing off the 50 day EMA on the low of that session. It consolidated, and then Wednesday it was moving up once more on some rising, above average volume. Excellent recovery and we are looking to move into this one again as it continues higher.
Volume: 1.041M Avg Volume: 845.985K
BUY POINT: $52.39 Volume=1M Target=$62.85 Stop=$49.91
POSITION: QCT CX - Mar. $52.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/ctrp.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, EDU, GME, GOOG, MA, PCLN, NVDA, VLO

CELG: Trying to hang on during this test, undercutting the 18 day EMA on the low and then recovering to hold that support. It has spent a week testing and this is where it needs to hold to continue the trend higher.

EDU: Took some gain after EDU gapped higher and faded some after a strong gap higher. Still in good shape to continue but may test some near term.

GOOG: Riding the YHOO earnings, gapping off the test of the 10 day EMA.

PCLN: Looks ready for a deeper test.

NVDA: Massive gap higher as NVDA moves out of a three week lateral consolidation.

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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