The Play Of The Day
April 5, 2000
08:22 AM EST.
Today's Play of The Day is: Light Path (NASDAQ:LPTHA)
We have played this one on it ranges several times in the recent past. It makes sense to play it again today as we should have an added advantage as know the stock very well. It lost KEY SUPPORT Yesterday on massive volume to drop from Monday's close of $37.75 to $32.00, down over $5.50. LPTHA then, on really not huge volume lost $32.00 then $30.00 and dipped back to go as low as $25.00 down over $12.75. That difference is ($12.75-$5.50= 7.25) The total volume yesterday was 1,547,600 higher as it should have been in relation to trading in such a volatile NASDAQ environment. However it was actually lower then LPTHA's volume on 3/07/200, a day when LPTHA went up over $12.00 (notice $12.00?) on volume of 1,648,000 to find near an all time high of $64.3750. The volume that day was actually more and look at the move up. What this tells me is LPTHA on volume of over 1,500,000 has a range of about 12.00 points. Very odd to move like that since LPTHA price was more then cut in half off that 3/07/2000 level. LPTHA looks like it will open today under 33.00 a good area as more investors may bail early losing that 33.00 area. $1.00 off that 32.00 area and a fear move back to $25.00? That's what many will think as will be looking for volume to take the stock under 30.00 then just under 30 I will make this one mine long as investors sell out to avoid 25.00 when they should buy right under 30.00 to be in LPTHA when its range indicates it could move back to close to 40.00 in any kind of rally! The KEY to this one will indeed be volume. I will be watching how much of an estimated 1.3 million total volume today it takes for LPTHA to lose $30.00. My guess is it won't be anywhere near what it was yesterday on way down. LESS VOLUME down is indeed most often BULLISH (UP ON PRICE) That's all I need to know to buy this one as investors should bail on fear!
KEY INDICATORS: LPTHA
Time Frame: Today
Type of Trade: day trade (estimated range play)
BONUS PLAY # 1: Eastman Kodak Co. (NYSE: EK)
Eastman Kodak Company is develops, manufactures and markets consumer and commercial imaging products. The Consumer Imaging Segment supplies film, photographic paper, processing services, photofinishing equipment, chemicals, cameras and projectors for amateur photography. Products of the Kodak Professional segment, including film, photographic paper, digital cameras, printers and scanners, chemicals and related services, serve professional photofinishers and photographers and commercial printers and publishers. Products in the Health Imaging segment, including medical films, chemicals and processing equipment, are used to capture, store, process, print and display images and information for customers in the healthcare industry. The Other Imaging segment contains products such as motion picture film, audiovisual equipment, certain digital cameras and printers, copiers and microfilm products, which serve customers in motion picture and television, office automation and government markets
Stock fans, Eastman Kodak has had three times its average volume the past 2 days. As the Naz continues to do its thing, I think that solid earnings Companies like, EK will continue off of there base. EK is under accumulation and gets an "A" rating. On-balance volume is a solid 85.2. The volume speaks pictures!
Key Indicators: EK
Buy Area:$59.00 to $60.00
TARGET:$66.00 to $69.00
Time Frame: 2 to 6 days
Type of Trade: Swing Trade
BONUS PLAY # 2: Diamonds Trust Inc (AMEX: DIA)
A diamond, or DIA, is a basket of stocks matched to the Dow Jones industrial average.
Stock fans, the Dow is forming a nice cup and handle chart. I am going to set my alarm to buy near the low, but I believe the only thing holding the DOW back now is the Naz. Some say the Naz hit bottom today, some say we have more pain to go. Who really knows. One thing for sure is are daily charts. The DOW has been in a correction mode bounced, dipped and now sideways. Thus the cup and handle pattern. Diamonds are very liquid and I look to catch it near the bottom.
Key Indicators: DIA
Buy Area:$108.75 to $109.00
TARGET:$115.00 to $119.90
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
BONUS PLAY#3 : Advanced Micro Devices (NYSE:AMD)
Advanced Micro Devices Inc. is a worldwide semiconductor manufacturer. The Company's products include a wide variety of industry-standard integrated circuits used in product applications such as telecommunications equipment, data and network communications equipment, consumer electronics, personal computers and workstations. In 1999, the Company participated in all three technology areas within the digital IC market, microprocessors, memory circuits and logic circuits, through its product groups comprised of Computation Products Group, Memory Group, Communications Group and the Company's recently sold programmable logic subsidiary, Vantis Corporation.
Earnings are coming up April 12th for this NYSE tech stock. Last quarter, AMD reported earnings of .46 per share profit when the street was expecting a loss of .04 per share. Look for AMD to once again blow out expectations as semiconductors have been very hot as of late. Also of note; AMD was one of the only stocks to not make a recent near term low during the Naz meltdown yesterday, in fact it had just made an all time high as the Naz started to implode. We are looking for explosive upside to this one as long as the Naz stays steady.
KEY INDICATORS: AMD
Buy Area: $59.00 - $61.50 (depends on market conditions)
Target: $65.00 today
Time Frame: into earnings: $80.00 5 trading days
"RUN THE OPTIONS!" AMD
The Call Options: May $65.00 call options
(Symbol: AMD- DM) Last Ask $3.6250
STOCKS ON OUR SCREENS TODAY:
YHOO- Earning Today after the bell this one will be hot all day!
EBAY- Well same high as YHOO so will YHOO make it its own? We shall see watch for EBAY to mimic YHOO again today!
AOL- Banc Alex Brown UPS AOL today to Strong Buy. AOL very strong in hammered market
SCII- This one should drop fast then bounce off $32.00 then go back up if it can break $37.00 it should see 40 plus soon
GWRX- It a buy under $30.00
PWAV- It loses $100.00 it is a buy
APPL- Earnings coming soon under $119.00 its a buy and hold for numbers.
COMS- under $45.00 its a buy
RIMM- under $66.00 its a buy
XYBR - under $13.00 its a buy as long as it holds $11.50
ORCL- May move up on open then fall back and test 68.00 again. It looks like a buy there today.
Have a great day!
More to come.....
and BigPlayStocks.com TEAM of Pro Traders!