The Play Of The Day
January 14, 2000
08:20 AM EST.
Well, as advertised we held 3,850 all day never going into negative the entire day yesterday. With the NASDAQ closing at 3,957.21 up more then 107 points we may now with the Futures currently up in hopes of a positive
Consumer Price Index (CPI) index report today. We may just find NASDAQ 4,000 again.
However, with Allan Greenspan speaking last night in NYC, and pointing towards an increase in interest rates. We look for the NASDAQ to fall short of NASDAQ 4,000 and again test the 3,850 area. INTC should lead the decrease after it makes 100.00 plus and then falls back on profit taking. We ramin bullish we just feel the NASDAQ finds a trading range. The NASDAQ looks to find a trading range as it prepares for a well deserved 3
Good Morning Stock Fans!
Today's Play of The Day is: INTC (NASDAQ:INTC) (SHORT)
Yesterday, INTC managed to finally after falling short in it's last two earnings reports more then satisfy the street as it posted better then expected numbers following yesterday's close. The stock traded as much higher in yesterday's after hours trading as it reacted to the news. It is currently trading up in today's pre market as investors look to take advantage of the news.
Today's market looks as if it is set up for a short squeeze as it interstly enough ignores Allen Greenspan's caution that the market's technology sector might be somewhat overvalued. With INTC being today's main focus we
are looking g for the NASDAQ to open higher and take INTC with it. However as INTC find the 100.00 area today as investors run up the stock. We are going to be looking for INTC to sell off shortly there after as the market
considers Allan Greenspan's remarks last night.
We will exercise the old adage buy on rumor sell on news today as INTC looks to be perhaps overbought as it didn't disappoint yesterday. However the growth was not an increase that would call for a 15% increase in the
stocks shares over the last week after it was upgraded early in the week by several brokers.The Key to today's NASDAQ should indeed be INTC. It should signal the NASDAQ retrace back to 3,850, as the market further digests Allen Greenspans remarks as well as a 3 day weekend in NASDAQ trading upcoming.
Cover for a Loss: $106.50
Time Frame: today
Type of Trade: daytrade
RUN THE OPTIONS!
INTC January 2000 $90.00 Option Puts
BONUS PLAY: ECHELON (NASDAQ:ELON) SHORT
Echelon (NASDAQ:ELON) is the developer of LONWORKS networks, recognized internationally as a standard for open, interoperable control networks. With thousands of application developers and millions of devices installed
worldwide, LONWORKS is the leading cross-industry standard for networking everyday devices in building and home automation, industrial, transportation, and public utility applications.
The stock literally exploded on what looked to be no news yesterday. At one point in the day it traded as high as $45.75, up more then $13.00 on roughly more then 100% its normal volume before it closed up more then
$11.50 at $43.68750.
Today, the stock looks to open higher, but then we are looking for profit takers to come in and take this stock down more then $6.00 off yesterday's highs. The reason we see this happening is the fact that the stock has
gotten ahead of itself and was shorted yesterday near the close as some larger investors may have come into the stock setting it up for what is called s short squeeze today.
We will look to short shares of (NASDAQ:ELON) today right off the open as it should open higher perhaps as high as $45.6250 then give way to profit takers as the stock finds support somewhere around $38.75. We should be
able to make 5 quick points on this one today as we are on the correct side as investors book profits after the stock tops out abruptly following today;s anticipated higher open.
Short Sell Area: $42.50- $45.50
Cover for a Loss:$47.3750
Time Frame: Today
Type of Trade: daytrade
BONUS PLAY #2 - Sun Rise Technologies (NASDAQ:SNRS) (SHORT)
Yesterday, trading on shares of (NASDAQ:SNRS) was halted as it awaited it second try for an FDA approval of its laser. Late in the day the news came as the FDA board did indeed approve SNRS's optical laser. In light of the
news shares of SNRS opened for after hours trading at just over $14.50 , and went as high as $18.3750 on volume of just over 725,000 shares trading in the 2 hour after hours session.
Lehaman is perhaps most responsible for starting a 3 day barrage in buying interest in the severally beaten down SNRS early this week after it upgraded the stock on hope of the fact it would receive FDA approval the second time around. That upgrade sent shares of SNRS up more then 3 plus at it traded more then 20 million shares in a 3 day span leading up to yesterday where it was closed all the entire day waiting for the news to come.
Today, the stock looks to indeed open higher. However remember this stock now has a gap of over 6.50 points if it opens where it is indicated at just over $17.25 a share. It may very well follow the market today and open higher. It then should not take much of a pull back for investors to come in and take profits in size as the stock should sell off as the news did what it was anticipated to do take the stock up near $18.00. This stock may see 20.00 today but not very long we look for profit takers to come in book profits fast taking the stock down as it looks to retrace its gap up open today.
Sell Short Area:$20.00-$19.3750
Cover for a Loss:$21.00
Time Frame: today
Type of Trade: daytrade
RUN THE OPTIONS!
SNRS Jan 2000 $15.00 Option Puts
STOCK TO WATCH TODAY: LHS Group (NASDAQ:LHSG)
LHS Group is a leading global provider of operating support system software and services to the communications industry. LHS products range from pre- and post paid billing and customer care to enhanced services and acquisition software. They are installed at more than 300 customer sites worldwide.
This stock is one to watch today, because it released news in after hours yesterday of the type that has recently in the past been the kind of news that investors have greeted with intense buying interest.
LHS Group and Alcatel Sign Memorandum to Pursue Wireless and Wireline Market in China
ATLANTA/FRANKFURT--(BUSINESS WIRE)--Jan. 13, 2000--
LHS and Alcatel Deepen Existing Partnership Agreement
LHS Group Inc. (NASDAQ:LHSG)(Neuer Markt: LHI) and its global partner Alcatel have signed a Memorandum of Understanding to pursue wireless and wireline opportunities in mainland China. The Memorandum is in addition to the existing global partnership agreement between LHS and Alcatel. LHS and Alcatel will assemble a joint dedicated team to address billing and customer care opportunities in China. The team will be based in Shanghai
and integrated into Alcatel's subsidiary there. This is the first time LHS has entered into an agreement with an existing global partner to create a joint dedicated team to pursue a specific market.
"This preferred alliance for China builds on our existing and fruitful partnership with LHS," stated Jean-Pierre Gaillat, vice president heading the OSS Revenue Assurance Business Unit at Alcatel. "The numerous synergies
between our two companies will give us a head start in the opening Chinese market for Customer Care and Billing for fixed and mobile operators. The joint dedicated team underscores the excellent cooperative working relationship we have with LHS, and we will continue to explore other ways to extend our partnership."
With The wireless sector and China related business's being so hot of late. This is one to watch today. It may start to move higher on volume once investors have a chance to review the news.
STOCKS ON OUR SCREENS TODAY:
AOL- day 5 of the mega merger
INTC- $0.69 vs estimate $0.62. It traded up as much as $4.8750 in after
hours following the news. INTC top looks to be $103.00 today. Look for
DIS- It remains strong. Could see 40's again. its about time!
GO- Oversold still has active option action.
NZRO- GM will invest.
ELOT- Was down in after hours, after closing at high of the day. Watch for
a bounce off $8.43750 today. If it looses that we will sell.
INPR- Yesterday's Email alert buy traded up to 15.00 late in after hours.
Congrats to players who got in for 2 plus on this one on the news of LINUX
and wirless investing.
SCOC- Making a nice come back has support just off $20.25. Looking for
WCAP - nice bounce yesterday. Look for increased volume and further
MSFT- Gates steps down from CEO spot.
UBET- active in today's premarket trading.
PRSF- in addtion to MER upgrade it gets another one today Strong Buy.
DITC- time for this stock to rest and fall back under $100.00
XING- it may move if China stocks heat up.
Have a great day!
Enjoy the 3 day weekend!
See you all Tuesday Morning!
More to come....
and BigPlayStocks.com Team of Traders.