The Play Of The Day
April 18, 2000
8:45 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: - JDS Unipahse (NASDAQ:JDSU) (SHORT OFF OPEN)
JDS Uniphase came on yesterday off 73.1250 after losing key support area of 77.50 and 74.00 to literally explode blowing away not 2 but how about 3 resistance area. JDSU went right to 80.00 plus almost immediately after it opened off that 73.1250 ( $80.00 was where it had held to the final slide last Friday - before it dropped near the close to $77.50) It then went to 85.00 then 88.00 as it high later in the day yesterday as the NASDAQ rallied off the 3290 area and ran to its all time 1 day point gain breaking 3,500.00 taking JDSU with it to almost $100.00 as it found $98.25!
Perhaps, if we wanna see where JDSU, is going today maybe we should see where its been. On Thursday, April 13, 2000 it had a high of $101.50 and a low of $92.50 on 30 million shares or so. ON Friday it widened that range going from an open of $88.00 after a bad CPI number to go as low as $77.50 on nearly 40 million shares. The Key day was yesterday as JDSU on 30.6 million shares went as high as $88.00 its remaining volume took it all the way to $98.25 its high. The remaining volume was only 5 million shares giving the likes of JDSU a 10 plus point range!
Stock Fans, it sure looked to be shorted from 88.00 to 98.25 as supply was lessened as the Market Technicians looked to bait JDSU , and the entire NASDAQ market as it soared late in the day. JDSU, should open lower today then go up slighlty as they sell into strenght and short it for the upcoming drop. JDSU shouldn't come close to $100.00 plus! It with the NASDAQ should test that 3265.00 area taking JDSU back to atleast 88.00 and probably right down to $81.00. JDSU looks almost certain to have profit taking give way to selling today as investors gaining more then 20.00 LIKE US! (JDSU "Play of The Day! -Friday, April 14, 200 at -$79.8750-$80.50) book profits and get out ahead of its loss of the 90's back to the lowest of 80's!
KEY INDICATORS: JDSU (SHORT)
Sell Short: Off Today's OPEN
Buy Stop: $103.00
TARGET: 88.00 ( The bottom maybe (81.00)
I will cover along the way down it its predicted range from $88.00-81.00
RUN THE OPTION (1 day move) JDSU
The April $90.00 Option Puts (off today's open
JDSU LONG CALL:
Buy Area: $81.00-$82.50
Sell Stop: $76.00
Time Frame: April 24, 2000
RUN THE OPTIONS: JDSU
The May $90.00 Option Calls
Bonus Play #1- YHOO (NASDAQ:YHOO) (LONG)
Stock Fans, Yahoo! (NASDAQ:YHOO), was one of only a few stock that never seemed to get its footing on the NASDAQ yesterday. Looking at (NASDAQ:YHOO) range it looks as if it broke its 52 week low of 55.00 reached last April ahead of earnings going all the way to $108.00 yesterday. YHOO , is called up in pre market today as many stocks are called lower. YHOO already reporting its earnings on April 5, 2000, ahead of the NASDAQ big slide from 4,446.49 to 3,227.00 yesterdays low, may just be ahead of the crowd.
YHOO may again test yesterday's low as it is looking like it opens at $113.00-$114.00 today. It should then drop back as the NASDAQ gives way to profit takers and hold 100.00 today bouncing at about the $105.00 area. It should hold this area as the NASDAQ looks to test 3,265.00 Friday's low soon. AOL reporting earnings along with INTC, and on the NYSE: LU should help the YHOO cause after it bounces off the $105.00 area.
KEY INDICATORS: YHOO
Buy Area: $105.25-$106.00
Sell Stop: $99.98750
Time Frame: 3 days
Type of Trade: Swing Trade
RUN THE OPTIONS: YHOO
The YHOO MAY $110.00 Option Calls
BONUS PLAY #2: Oracle (NASDAQ:ORCL) (SHORT)
Oracle (NASDAQ:ORCL) bounced short of losing 60.00 yesterday as it held that figure by the narrowest of margins at $60.68750 (near it open) then had buyers come in as well as Market Technicians go long as it bounced hard off that number. It went all the way to 69.00 then pulled back tested 66.00 (about half way it yesterday's range) before it came on with what looked to be a shorted NASDAQ as it nearly made $75.00 again!
ORCL , may have done what the NASDAQ did yesterday as it overcorrected for massive selling. ORCL traded huge volume as it had that big range of over 14.00 points with total volume of over 70 million shares. However ORCL is way ahead of itself as it has a brick wall at $76.00 an area that used to be strong support when ORCL had traded over $88.00 less then 10 days ago. ORCL missing breaking $75.00 yesterday doesn't set up well, for its current range. With the NASDAQ also having a brick wall at 3,649.00 April 4, 2000s low. ORACLE also doesn't look likely to break $76.00 today. Therefore it makes perfect sense to board ORCL after we played it up from $66.1250 to 74.00 plus to go SHORT on ORCL today as it should again test that $65.00 area before it finds $76.00 and beyond!
KEY INDICATORS: ORCL
Sell Short: $74.00-$72.8750
Buy Stop: $78.00
Time Frame: Today
RUN THE OPTIONS (Day Trade ORCL under $73.00)
The ORCL May $70.00's Option Puts
KEY INDICATORS: ORCL (LONG) -After it pull back
Buy Area: $65.1250-$66.00
Sell Stop: $59.00
Time Frame: 2 days
RUN THE OPTIONS: ORCL (On way back up off 65.00)
The May $72.50 Option Calls
STOCKS ON OUR SCREENS TODAY:
AOL- It should motor into earnings
CSCO- It should test $57.00-$58.00 again
DCLK- In line with estimates It should fall back to $52.00 then $50.00
ANCR- It needs to test $16.00 then move back to $22.00
DELL- It needs to test $46.00
EBAY- It should fall back to $135.00 area
CMRC- Back to under $60.00
BRCD- Nice support at $88.00
CRA- We watch and wait for that $53.00 loss so we can go in!
More to come...
and BigPlayStocks.com TEAM of PRO TRADERS!