The Play Of The Day

10-12-99 08:30 EST

Good Morning Stock Fans!

Today's Play of The Day is: America Online (NYSE:AOL) stock and the (NYSE:AOL) Nov 1999 $135.00 Option Calls (Symbol:AOO-KG)

Stock Fans! I am going to consult my history book and go with (NYSE:AOL) today. I like the stock to open with the market lower today at about $118.25. I don't suspect it will any lower then that. That leaves great support at $115.25 a perfect place for a sell stop. The RISK today is less then the REWARD on (NYSE:AOL) stock and its corresponding Nov 20 1999 Option Calls.

America Online (NYSE:AOL) seems to have its DSL worries out of the way for now. It also is expected to report good earnings on October 26, 1999. In the past ahead of earnings this time of year (NYSE:AOL) has enjoyed nice runs. I look for the same to begin today, as (NYSE:AOL) should begin its annual surge into upcoming earnings, as well as what analysts have predicted to be an e commerce Christmas 1999 that will more then triple last years online sales.

Buy Area: $118.25
Sell Stop: $115.1250
TARGET: $141.00 (10-26-99 1 day ahead of AOL's earnings)
Important to watch for AOL to break up and thru $124.1250. We can all thank Barons in July 1999 for creating such a large AOL gap from $116.00-$124.00. Back just 3 months ago Barons actually liked AOL!

BONUS PLAY: Genesis Microchip (NASDAQ:GNSS)

Genesis Microchip (NASDAQ:GNSS) a part of the "chips" sector has made a nice trend to the upside, as volume has increased over the past 2 days. With Intel (NASDAQ:INTC), the leader of the "chip"sector" reporting earnings soon (NASDAQGNSS) should see a nice move in the sector as (NASDAQ:INTC) should report that the recent news regarding Taiwan's earthquake had minimal affects on the "chip" sector. (NASDAQ:GNSS) makes parts that go into the flat screen displays. With that type of display sure to be a hit for Christmas 1999 I am looking for shares of (NASDAQ:GNSS) to make a nice move. I will be looking to pick this one up on a "Swing Trade" dip as it should retrace slightly or open lower today on less volume.

"Swing Trade" ( 1 to 7 trading days)
Buy Area: $18.93750-19.25
Sell Stop: $17.8750
TARGET: $21.1250-$23.93750

Watch shares of Zany Brainy (NASDAQ:ZANY). As I pointed out yesterday to the traders in my LIVE TRADING ROOM (NASDAQ:ZANY) came out of nowhere and on no news traded over 840,000 shares almost 3 times its average 30 day volume, on its way to a gain of over $1.00. It did all of this on no news. This stock also closed near it high of the day and is indicated to open at $10.00 a shares today as it again has action in pre-market.

Buy Area: $9.6250- $9.93750
Sell Stop: $9.00
TARGET: $11.93750-$12.50 (could be today)

Keep an eye today on shares of (NASDAQ:RAZF) I spotted then yesterday morning about 11:30 AM EST when they had only traded 89,000 shares. They went on to trade over 700,000 shares on their way to a gain of 22.9% 10.00 plus points to close near their high at $55.00 on absolutely no news!

Today its shares look to open flat in a down market, at least off the open a down market. This may seem far fetched but I can see Macromedia (NASDAQ:MACR) being a perfect suitor for this company as (NASDAQ:RAZF) is the only publicly traded Web Graphic Design Company. If (NASDAQ:MACR) FLASH is going to be so big in the coming months it would make perfect sense to by the company that is most likely seen to be doing an awful lot of Web Site FLASH "face lifts" upcoming.
Special NOTE: I's going to be looking to pick this one up as it pulls back today. VOLUME will be KEY!

Buy Are: $49.8750- $51.93750
Sell Stop: $47.00
TARGET: $59.1250-$63.00 (could be today)!

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