The Play Of The Day

May 11, 2000
8:55 AM EST

Good Morning Stock Fans!

Attention All LIVE trading Room Members!:

The Stock Jock, Sago, Mateo, Sonoma, and David will all be in and out of the room today, as is having a "Meeting of The Minds" at our central office here in Appleton, WI. Sago and Myself- "The Stock Jock!" will be in the LIVE trading Room from 9:30 AM EST - 10:15 AM EST. We will not be in the trading room today from 10:15 EST. till - 2:30 PM EST. We will be back for the final 90 mins of trading. So look for us the first 45 mins of today's market and the last 90 mins.

ALERT EMAILS: Look for real short alert emails today as I will be pressed for time.


The NASDAQ opened lower yesterday as investors like I had predicted weren't to happy with CSCO high evaluation against in only beating the street by 1 penny, and increasing revenues 55%. The NASDAQ never recovered from its gap down open yesterday as it went down almost 200 points on moderate volume. The index bounced off 3,367.00 and then went as high as 3,470.00 before it sold off into the close, and the likes of JDSU went to as high 84.50 after bouncing off 79.25 when the NASDAQ bounced off 3367.00 and then got hammered late in the day closing off that 84.50 almost under 80.00 as the NASDAQ closed at 3385.00 down 200.00

Today's Economic Reports were Retail Sales down.02% and the Jobless Claims decreased 7,000 a number the futures market liked as the NASDAQ futures rocketed up 85.00 plus at one point. What this all says as I see the likes of my NASDAQ tracking stocks such as JDSU gap up 3.00 plus points on the bid on volume of less then 50,000 shares, and YHOO up 2.50 on 35,000 pre market shares is the NASDAQ is heavily shorted and is going to gap up and then once again HAVE A LACK OF BUYERS. On that once momentum ends the NASDAQ should continue selling off as investors try and sell into strength as market makers continue to short the index higher to in turn take it lower.

Today 3,489.00 where the NASDAQ previously had a gap down to fill ahead of yesterday's trading looks to be the top. I will once again look to SHORT the NASDAQ today as it should stay under 3,500.00 today. The worst case scenario is 3,529.00 the high the NASDAQ found after bouncing off 3375.00 on April 14, 2000. The NASDAQ loses yesterday's low of 3376.00 and it should drop big as panic sets in. The final result go higher to go lower!

Today's Play of The Day is: JDS Uniphase: (NASDAQ:JDSU)

Today, with 4 Pro traders in my office I am going go with what I know best today JDSU I have had emails saying they should change its name to (S)J! DS Uniphase! I like JDSU to have no chance to clear 85.50 May 8, 2000, high on JDSU. I will SHORT JDSU today if it breaks 84.00 knowing it will should reverse and drop big as it goes higher to go lower.

(SJ currently is short 1500 shares of JDSU at yesterdays AWESOME Short area of 84.43750 as JDSU went only 1/8 higher to 84.50!) SJ will SHORT more JDSU under 86.00 today!

Sell Short Area: $85.50-$83.25
Buy Stop: $88.3750
TARGET: $77.50
Time Frame: 2-3 days

BONUS PLAY #1 United Stationers, Inc. (NASDAQNM: USTR)

United Stationers, Inc., the parent company of United Stationers Supply Co. (USSC), is the largest general line business products wholesaler in the United States. The Company sells its products through national distribution networks to more than 20,000 resellers, who in turn sell directly to end-users. These products are distributed through a computer-based network of warehouse facilities and truck fleets radiating from 39 regional distribution centers, 21 Lagasse distribution centers, and six Azerty distribution centers. The Company's product offerings, comprised of more than 35,000 stockkeeping units, are divided into five primary categories: Traditional Office Products, Computer Consumables, Office Furniture, Facilities Supplies, and Business Machines And Audio-Visual Products

Stock Fans, this has been on my watch list for some time. The weekly chart and timing indicators say this is the time. Volume yesterday was up 110% above it's daily average, the day before was up 35%, one months average volume is up 102%. Overnight accumulation ratings was upgraded to a "B" rating. United Stationers sports a 92% growth rate and makes the top 40 fastest growing Naz list. Earnings have consistently have grown. The closing price closed above it's ten day moving average on above average volume. Looking to take a 1/3 to 1/2 position on morning dip and add on strength or weakness.

Key Indicators: USTR
Buy Area:$33.25 to $33.60
TARGET:$36.96 to $38.64
Time Frame: 3 to 7 days
Type of Trade: Swing Trade


I will send this in 35 mins today as I am SHORT on time like the Market!

More to come...


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