The Play Of The Day

Febuary 3, 2000
9:01 AM EST.

Good Morning Stock Fans!


Stock Fans, we were right in saying the FED would raise.25% on interest rates yesterday. We would like to say we really were ahead of the crowd on making the correct call. It seems almost everyone had it pegged to be.25%. The question that I am sure many of you are asking is now what? Well, with AMZN and EBAY posted solid number yesterday. We are again looking for the NASDAQ to open higher and perhaps add on more then 50 points. Then we look for profit takers to come in and push the average lower. The NASDAQ still looks unready to settle into a trading range. We will be looking today at 2 key indicators as to where the NASDAQ is going. The first is always foremost VOLUME. The second is what kind of money is coming in off the sidelines. Maria Bartaromia of CNBC often points out Trimtabs information of sideline money. It seems there is still a major surplus of money out there that perhaps was waiting for the FED to pull the trigger. Now, that the FED has done its job look for the NASDAQ to possibly trade sideways over the next few days, but still in a huge range of perhaps as large as 3,953 on the downside to as much as 4,189 on the upside. We will leave the NASDAQ at that today, and be sure to include a more to come ... as the index changes it seems by the second lately!


Stock Fans! We were beginning to lose our breath by reiterating over and over that Henry Blodgett the extremely influential Internet analyst at (NASDAQ:MER) said he really liked the AOL TWX deal. He did say however when AOL was trading at $68.00 a change that the deal could drop AOL to as low as $55.00. Henry went on to say he then saw AOL making its way back to 90.00-100.00 by late November 2000. Well, we are not analysts here at However we followed Henry lead to the penny and went in to AOL in size both on the stock and the options at $55.00 last week. AOL tested $55.00 not once not even 2 times. How bought 3 times as it triple bottomed now sits at $55.00 for almost 30 days now. We came out and said we loved the AOL Jan 2001 $100.00 Option Leaps last week as well. Stock Fans! Remember this Henry said AOL will test 55.00 it did. Friends if he likes $90.00 to $100.00 by November 2000 then who are we to disagree. So far he's batting 1000%. We don't even need to ask our resident Pro Baseball Player John Jaha of the Oakland Athletics that Henry has a Sweet Swing!

Today's Play of The Day is: ETOYS INC (NasdaqNM:ETYS)

eToys, Inc. is a leading Web-based retailer focused exclusively on children's products, including toys, video games, software, videos and music. eToys' online store offers an extensive selection of competitively priced children's products, with over 9,500 SKUs representing more than 750 brands. eToys' Web site features detailed product information, helpful and useful shopping services and innovative merchandising through easy-to-use Web pages. The Company designed its online retail store to be the primary place for consumers to purchase children's products. A consumer shopping on the Web site can, in addition to ordering products, browse the different departments of the store, conduct targeted searches, view recommended products, visit the Gift Center, participate in promotions and check order status.

With both eBay (EBAY) and (AMZN) reporting outstanding bottom-line results, or it "seems", there is a general sense of "well-being" for the leading e-tailers in the medium-term. ETYS is in the same group as these other 'money losers', but now perhaps traders will start viewing these as possible 'money makers' in the near future. ETYS was once at a lofty $70 right before Thanksgiving 1999. We played this one very successfully at that time. ETYS has recently bottomed out at approximately $15 per share. The option activity is going crazy on this one. Check out the volume on the Feb 20 call yesterday. 922 contracts traded. This is a momentum play, not a long term hold for us. But it could rebound in a big way if traders begin to view these e-tailers in a favorable light.

Buy Area:$16.8750-$17.25
Sell Stop:$15.43750
Time Frame: 1 to 5 days
Type of Trade: Swing Trade

The options that make the most sense to run off this play are the Feb 20 Calls - last Ask $1.50

BONUS PLAY #2 Santa Cruz Operations (NASDAQNM:SCOC)

SCOC provides UNIX-based, open system software, enabling integration of technology and products from different vendors to create powerful network information systems.

LINUXWORLD EXPO 2000, NEW YORK, Feb. 2 /PRNewswire/ -- SCO (Nasdaq: SCOC - news) and TurboLinux today announced the companies are working together to integrate SCO's Tarantella software throughout the TurboLinux product line and deliver its customers browser access to thousands of Windows, UNIX and Linux applications.

Stock Fans, Linux stocks are up in Germany and this stock is in a bounce mode. It crossed the 10 day moving average on double its average volume!

Buy Area:$20.75 to $21.25
Sell Stop:$20.1875
TARGET:$23.375 to $24.43
Time Frame: 1 to 3 days
Type of Trade: Swing Trade


CNET, Inc. provides information online and through television programs regarding computers, the Internet and digital technologies. The primary channels accessible through are,,,,, and CNET Television includes the Digital Domain, which is a two-hour programming block broadcast on the USA Network and the Sci-Fi Channel. The Digital Domain includes CNET Central, The Web, Cool Tech and The New Edge. The Company also produces and Tech Reports. CNET Television programming is broadcast to more than 75 million households and is syndicated nationally and in 40 international markets. The Company currently owns approximately 81% of SNAP! LLC, a free Internet directory, search and navigation portal service controlled by NBC Multimedia, Inc.

Stock Fans, Earnings are 5:00 tonight EST. This stock is technically oversold and bounced 5% yesterday. I like stocks that start bouncing before earnings as this tells me that something has been leaked!.

Buy Area:$50.25 to $51.00
Sell Stop:$49.00
TARGET:$53.25 to $55.00
Time Frame: Today
Type of Trade: Day Trade


IVIL- Sago's call and SJ's Alert Email combined for this one being called at $16.50. CMGI still is rumored to be the suier at 28-30 a share. The volume yesterday of 3 mill plus was insane. IVIL might pull back today to $21.00 and then look to go higher.
LNTY- we liked this one at $23.00 on Friday. It started to break out yesterday. it may run more today. We still ike $40.00.
IMPT- we took a lot of heat on this one. However yesterday it made a move. We like it to find the mid to upper 30's soon.
RIMM- $100.00 target
IMMU-News of their cancer vaccine getting FDA approval came near the close. it may follow through today and see $20 plus
HOTT-Watch this one as it had blow out numbers
QEDI-We joked yesterday in the Live Trading Room, that QEDI's first 2 days of trading had set up almost exactly like Red Hat - RHAT first 2 IPO days did. Well, you wonder what RHAT did on day 3 try 100 plus. Look for QEDI to find it today!
IDTI- If QEDI adds on so does IDTI 16% of QEDI grows!
IBAS- Upgraded to strong buy
AOL- If it could drive 55.00 we like it to obey the speed limit for a while and fin $65.00 as a trading range next 10 days.
BNYN- Play of Day yesterday may see 30 sooner then later.
LOOK- We love this one. We think its an even at 40 its undervalued.
USWB-The stock is like energizer bunny. It may need to check it batteries after open. However then we like USWB to make 40 its price in next week.
DSTI - traded up in pre market. Look for it to possibly see $26.00 after the open.
ANDR-Should be re named AND "Joe" Kerrin 's handy work finds its way back down to 9 or so next 2 days
IATV- It seems to have support at $35.00
TWTC- This is the real way to own AOL TWX!
XYBR- This stock is beginning to "wear" on a lot more investors of late. "It seem far fetched" to see XYBR trade north of $20.00. Its not far off, however! Give it 40 days tops!
GO- Looks ready to explode
DIS- Disney is ready again to make millionaires in its Magi Kingdom
IMPR- It had nice volume. it may break $13.00 today
SBAS- it may run
VRTL- Someone has a ton of this stock as 300,000 shares moves it alot more now then it did even 10 days ago. We like 20 plus. They keep buying it!
XLNX- We called it at 47.50 on Monday it saw 51 plus yesterday. We like 60 by the end of the week.

More to come....

Stock Jock!
and team of Pro Traders

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