The Play Of The Day
10-15-99 07:22 EST.
PPI Report for September 1999 came in much higher then expected today a 1.1% increase. The dollar dropping significantly on that news as well as the bond market. Couple that with Fed Chairman Allan Greenspan making reference to the fact that the market is overvalued while speaking last night. The Stock Market may very well be in for a day that could take the Dow Jones Industrials down under 10,000. I again will be watching (NYSE:IBM) to drop to $100.00- $99.00.
We may find the bottom and today and have excellent buying opportunities later today. Look for email updates throughout today.
Today's Play of The Day is Digital River (NASDAQ:DRIV)
About: Digital River
Digital River, Inc. (NASDAQ:DRIV), based in Minneapolis, is the largest online source of software and a leading outsource provider of Web-based commerce solutions. The Company provides more than 5,000 software publishers and online retailers with its proprietary technology for Internet delivery of more than 100,000 digital products, including 30,000 software products and applications. For more information, visit Digital River's Web site at http://www.digitalriver.com
As many stocks get hammered in pre market today. We may see shares of (NASDAQ:DRIV) hold up relatively well today. The reason for this is because on no news yesterday and volume of 774,800 shares more then double its normal 30 day average volume of 324,000 shares (NASDAQ:DRIV) broke out of a very narrow trading range that it had been stuck in over the last 2 weeks of $18.00-$20.25 and went up $2.75 a share closing at $23.6250 per share. The fact that ti held over $23.00 a share yesterday on close meant that it closed above its 50 day closing average.
In what will be a very down market today on the open. I will watch shares of (NASDAQ:DRIV) to find my buy area. I have set the sell stop on this play tighter then usual to make sure that if the market does really drop taking this stock possibly with it I am not going to be risking all that much.
Buy Area: $21.75-$22.1250
*SELL STOP: $21.00
*Set sell stop upon buying!
BONUS PLAY: Cheap Tickets (NASDAQ:CTIX)
Stock Fans! (NASDAQ:CTIX) is not going to fall back much today as the rest of the market looks to. It is right at bottom at current levels. I like how it closed it paired it losses yesterday on more volume into the close as it after being down almost 2.00 at one point managed to close down only $0.75 at $23.75 per share.
There was huge volume on the (NASDAQ:CTIX) Nov $30.00 and November $35.00 Call Options yesterday. With shares of (NASDAQ:CTIX) trading at about $23.00 a share those option contracts had investors betting that shares of (NASDAQ:CTIX) in the next 30 days would go as high as $30.00!
We will know rather quickly on this stock today as it has not traded lower then $23.00 a share in the last year. I will look to buy more shares of it right on $23.00 today. I am going to set a sell stop at $22.3750 since the market could really drop today. I will hold this one into earnings coming in the nest 10 days for (NASDAQ:CTIX)
Buy Area: $23.00
Sell Stop: $22.3750
TARGET: $30.00-35.00 (30 days)
Run The Options
Another way to play this one is just as some rather savvy investors in the option market seem to be of late as over 400 option contracts traded out of the money on (NASDAQ:CTIX) yesterday. The option calls I will be looking to buy more of today are the CTIX-November 20, 1999 $35.00 Call Options.
Have a great day!
More to come...