The Play Of The Day

January 7, 2000
08:25 AM EST.

Good Morning Stock Fans!

The NASDAQ Market if it does indeed test 3,681 it will have given away 1/3 of its gains form October 25, 1999-December 31, 1999 if it hits that number. We are looking for the NASDAQ to hold support at that level. It makes a lot of sense to hold that level today. Most of this now 3 day drop from off its highs of 1999 has been on profit taking. With the profits now gone from the vast majority of these stocks. We should now see buyers come in. Sellers have now taken their profits. In short a great buying opportunity as we should see the NASDAQ hold 3,681 and then make its way back up to the 3,850 area of the next 5-10 trading days.

Today's Play of The Day is: Cobalt Group (NASDAQ:CBLT) SHORT-

What Goes up must come down!

Refer to yesterday's "Play of The Day!" For a description of Cobalt. It is posted on at the "Play of The Day!" web page.

NASDAQ:CBLT) has a gap of $10.50 to $21.3750 to fill in. The news from Wednesday evening was strong. It didn't look to be worth a gap of 12 plus points, however. The stock looks ready to take a fall today. Should drop perhaps as low as 17.50 an area it fell to late in after hours trading on Wednesday evening. We have placed the following KEY INDICATORS on this one as area we think are safe today.

Cobalt Group, Inc. (NASDAQNM:CBLT)
Sell short: $22.50 to $24.00
Buy Stop: $24.885
TARGET: $15.25 to $19.50
Time Frame: 1 to 2 days
Ditto on above. Came up in exhaustion gap report. It looks tried and ready to fall
Type of Trade: 1 to 2 days

BONUS PLAY: Covad Communications Group (NASDAQNM:COVD) LONG
Covad Communications Group (NASDAQ:COVD) is the leading national broadband services provider of high-speed Internet and network access utilizing Digital Subscriber Line(DSL) technology. It offers DSL services through Internet Service Providers, telecommunications carriers, enterprises, PC OEMs and ASPs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 56 of the top Metropolitan Statistical Areas (MSAs) and will be available in 100 MSAs by the end of 2000. At that time, Covad's network will reach more than 40 percent of all US homes and 45 percent of all US businesses.

Stock has stayed strong as NASDAQ has dropped for 3 consecutive days. It should have a nice bounce today once the NASDAQ recovers from 46 down. This stock should then make a nice recovery.

Covad Communications Group (NASDAQNM:COVD)
Buy: $58.75 to $59.50
Sell Stop: $55.186
TARGET: $65.40 to $68.425
Time Frame: 2 to 10 days
This was a previous POD in the 30's and it is one of my favorites to run big this year. Also, this has been up that past 2 days when the rest of the market has tanked. All indicators say time to swing with COVD!


Hello Stack Fans! I'm SAGO!

Wow these are exciting times. The Nasdaq is working fast and furious to correct itself. This will provide some nice entry points to buy our favorites back! Remember to use stop losses! No exceptions. You can only trade if you have money to trade. I am using an abbreviated version of my picks for today. There are more of them, but in different categories. Punch in the symbol on Yahoo finance to get more information about a company if desired. . I will be taking care of business today and the Moderators will be available to take any questions.

DOW Industrials favorite picks:
Money is moving into safety, these in my opinion are oversold, bouncing and are very low risk.

Walt Disney Company
Buy Area: $31.00 to $31.75
Sell Stop: $29.485
TARGET: $33.25 to $34.925
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
Everyone is saying that Disney is going to roll this year and I am a believer!

General Electric Company
Buy Area: $143.00 to $145.50
Sell Stop: $138.75
TARGET: $149.25 to $151.25
Time Frame: 5 to 10 days
Remember there is a split knocking on the door!

Banking stocks favorite pick:
First Union Corporation
Buy Area: $32.50 to $33.00
Sell Stop: $31.50
TARGET: $36.30 to $37.50
Time Frame: 5 to 10 days
This is way oversold and a takeover candidate. Also was an analyst pick last night on CNBC for that reason.
Type of Trade: Swing Trade

Echelon Corporation (NASDAQNM:ELON)
Sell short: $22.50 to $23.50
Buy Stop: $24.325
TARGET: $17.25 to $19.50
Time Frame: 1 to 2 days
Came up in exhaustion gap report. This puppy is tired and needs to fill the gap!

SRCH- Linux Plays
GOJO - Linux Plays
MSGI- Undoubtedly a winner! We await news.
ZANY-Oversold. Should have good numbers for Christmas.
SE -Like this one a lot.
ABIZ-Very Solid
PERL-Came on at close.
ORCL- a steal under $95.00
SCOC-Looks like a value currently.
CMGI - Should hold $240.00. Remember its splitting soon 2 for 1. Great value for future
QCOM-Looks like a good value under $139.00
BMCS-Remains oversold
CORL -Shuold bounce today at $19.43750
FATB - Remains oversold
INPR -extremely tight range. it may run
XPDR- Also a tight range
EGGS- Holiday sales could be stellar
TMX- Latin America Internet play. MER upgrades today.
AOL - It could test $60.00. Oversold at that level
PRSF - MER added it to its top 10. Down yesterday it may run today.
FMKT- GM is a major loss. However it has been hit hard enuogh.
MACR- A top pick in 2000.

Have a great day!

More to come....

Stock Jock, SAGO
and Team of Traders.

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