The Play Of The Day
May 3, 2000
08:45 AM EST.
Good Morning Stock Fans!
The NASDAQ traded at its lowest volume of the year yesterday, as investors booked profits when the likes of Morgan's Mary Meeker stated that
MSFT was worth only about $60.00. The market then had its catalyst to begin a sell off as the NASDAQ composite's early morning narrow range dragged on into the mid afternoon. With no buyers in site to push the index higher investors sold off 4 days of profits as the NASDAQ had come off 6 straight days of gains beginning last Monday, April 24, 2000 with a low of 3,345.00 that went as high 3982.00 on Monday, May 1, 2000.
The volume was a key indicator as it remained low because apparently most investors saw no reason to sell. They knew very well that the index was some 555 points lower last week and it only bounced back on what merely appeared to be a NASDAQ rally. However, members of BigPlayStocks.com were not fooled as we had seen this all before!
THE NASDAQ CURRENT EQUATION: "The RANGE is - 4009.00 - 3,221.00!"
4,009.00 (NASDAQ low 4/5/00, 4/11/00, (double top now)
3,975.00 (5/1 afternoon high) 124.00 more then 3,851.00
3,009.00 (Nasdaq buffer zone off last )
3,851.00 ( Nasdaq high after 4/24 3,345.00 bounce)
3,345.00 (Nasdaq low 4/24)
3321.00 (Nasdaq close 4/17/00, 12/1/99, 12/99,( double bottom) 100 point
buffer off low
3,221.00 ( Nasdaq 200 day reached 4/19/00
"ATTENTION ALL STOCK FANS!" Help Out The BPS.com TEAM!
Stock Fans! Thanks so much for all the great testimonials that many of you wrote yesterday! We really appreciate it as our hard work obviously doesn't go unnoticed or appreciated!
Please Help Us as We use the "POWER OF THE INTERNET!"
Yesterday some 120 plus traders in our LIVE Trading Room Helped us out by posting on message boards and all of the Internet in general our NASDAQ EQUATION TO RE TEST 3,221.00! HELP US OUT TODAY AND POST THIS ACROSS THE INTERNET'S WAVES AS WE LOOK TO GET OUR JUST RECOGNITION FOR SEEING THE RANGE AHEAD OF THE CROWD! GOING SHORT AT 3,975.22 ALL IN!
Copy and paste the following message and thanks again>>>>
"NASDAQ 3,221.00 Before 4,009.00
3,975.00 - 3,851.00 = 124.00
3,345.00 - 124.00 = 3,221.00
124.00 higher means 124.00 LOW!
"GET IN THE GAME & WIN IN ANY MARKET!"
Thanks! Stock Fans!
SJ STAYS SHORT: JDSU , QQQ, YHOO, MACR, PWAV, EMC, RNWK, CMGI, DCLK, EXDS
NASDAQ OUTLOOK TODAY: "SJ Stays Short Into Today's Open: 3,221.00 Comes Before 4,009.00!"
Stock Fans, the lack of VOLUME yesterday was no surprise to me as the increase in volume hadn't really come close to the volume that we only see in times of stocktrading as total volume the short volume, or shares available to sell by market technicians or a very select few investors. The supply issue on the NASDAQ had been high for days, but the demand was melted by market technicians making the NASDAQ appear as if it were going up, and indeed it did as Market Technicians continued to short the NASDAQ higher which in turn caused the likes of CNBC to report "The NASDAQ shook off rate worries last week and rallied." This couldn't be farther from the truth as the NASDAQ never truly had many buyers, and the index then crawled back over 3,851.00 (the NASDAQ previous 5 day high ahead of 3982.00 that really was to get 3975 ( 124 higher = 124.00 lower!). The NASDAQ in turn May 1, and May 2, didn't have nearly the volume as those shorter didn't dare short the NASDAQ higher and fool with a move that would cause a squeeze and a bust out of 4009.00 where momentum investors who refused to buy at 3,900.00 would still refuse to buy, but however would if there were a break out over 4,009.00. So with prices at a high and a narrow range, the Market Technicians flooded the supply and dropped the index's NASDAQ stocks way down-- more than 170.00 into the close!
Today, we will look for more of the same as the volume was still extremely miniscule! We will now look for the NASDAQ to force out investors that refused to sell yesterday, even though the NASDAQ dropped 170.00.
THE 3 KEY REASONS WHY NASDAQ VOLUME WAS LOW MAY 2, 2000,
1. Buyers refused to purchase due to worries of FED rate hikes--behaving similarly to how they have done in the past with the NASDAQ was over 3,500.00
2. Sellers refused to sell knowing full well that the index was some 500 plus points low on 4/24/00 and it only bounced back even higher to almost 4,000.00
3. Market Technicians and some very shrewd investors, didn't dare short anymore to take the index into the 4009.00 break out area.
WHY WE GO LOWER TODAY:
True we could bounce-- but later today after the 2:00 hour on the east coast a rather tight index and narrow NASDAQ range should once again give way to selling as we should test the 3,522.00 area today! The NASDAQ will have to drop, as we all know, because to exist a market must have volume. So if they will not buy, then the only conclusion can be that there will be SELLING! We stay short and look for more gains and VOLUME to increase!
The next time JDSU YHOO and CSCO ORCL to name a few trade 10% over their30 day average volumes it should be in a dramatic sell off!
Today's Play of The Day! Quall Com (NASDAQ:QCOM)
QCOM looked yesterday to maybe be the target of a buy out as it rallied in a NASDAQ market crushed on low volume. It also looked to me more like the stock was a pawn used to keep the index higher. It was up as much as 9.00 at one point in the day as investors chased it higher when the NASDAQ was only down 34.00 -40.00 points yesterday. Then, as the NASDAQ lost 50 -60 70- and 100 plus points QCOM did fall back as volume really dropped off. It managed to still close up 3.00. This stock went to 94.50 on NASDAQ 3,221.00 and on NASDAQ 3,345.00 went even lower to a 200 day low 92.50. It looks to me like it is going drop a lot like it was pushed higher yesterday, as it fell victim in a rumored buyout to a short squeeze!
KEY INDICATORS: QCOM
Sell Short: On Open
Buy Stop: $118.00
TARGET: $94.25-$91.50 (NASDAQ 3,221.00)
Time Frame: before May 19, 2000
RUN THE OPTIONS: QCOM
In the money - MAY 110.00's option puts
out of money for 3221.00 The MAY 95.00's option puts
BONUS PLAY #1 ETEK Dynamics (NASDAQ:ETEK)
This company was bought by JDSU a few months back, and trades in line with JDSU. It was crushed yesterday down 20.00 plus. However, it has an a range area of about 40 plus points lower that it had previously established back when the NASDAQ was 3345.00 and more points lower. It should follow JDSU lower as it continues to sell off!
KEY INDICATORS: ETEK
Sell Short: $187.00-$181.00 ( it moves fast)
Buy Stop: $191.00
TARGET: $ 141.00-$143.8750 ( 3,221.00)
Time Frame: before May 19, 2000
BONUS PLAY #2 (NASDAQ:BVSN) SHORT
We should see this one up on good numbers and sell off fast as NASDAQ pulls back more today.
KEY INDICATORS: BVSN
Sell Short: $47.50-$45.00
Buy Stop :$50.00
Time Frame: 4 days
BONUS (Short) PLAY #3: Aether Systems, Inc. (NasdaqNM: AETH)
Aether Systems, Inc. provide wireless data services, systems and softwareenabling people to use handheld devices for mobile data communications and real-time transactions. Aether's strategy initially focused on developing services for the financial services sector. Current services include TradeRunner, a real-time wireless trading and financial information service offered to the online customers of Morgan Stanley Dean Witter Online, and the Reuters MarketClip service for financial market price quotes, alerts and information. The Company is also developing wireless trading and financial services for other major financial institutions, including Charles Schwab. Through recent acquisitions, the Company has expanded its services into the healthcare, sales force automation and transportation logistics and delivery industries. OmniSky, a company formed by Aether and 3Com, is pursuing opportunities for wireless e-mail, Internet access and other electronic transactions applications
Stock Fans, Aether looks to have run out of steam. It ran from its low on 4/17 at $71.25 to a close yesterday of $ 137.00. That is a 92% gain in 2 weeks! Aether is a fast moving stock and it's daily price range average is $22.99. Keep your eye on the ball here, as its daily range is huge! We will be looking to enter short after an initial morning pop!
KEY INDICATORS: AETH
Sell short: $135.75 to $140.00
TARGET: $126.00 to $115.50
Type of Trade: Short Trade
BONUS (Short) PLAY # 4: Efficient Networks, Inc. (NasdaqNM: EFNT)
Efficient Networks, Inc. is a worldwide developer and supplier of high-speed digital subscriber line customer premises equipment (CPE) for the broadband access market. The Company focuses on developing and producing single- and multiple-user DSL customer premises equipment for small- to medium-sized businesses and branch offices of large corporations and consumers. Its DSL products enable applications such as high-speed
Internet access, electronic commerce, remote access, telecommuting and extensions of corporate networks to branch offices. The Company's productsinclude the SpeedStream family of products, ProfileBuilder Software, Advanced Status Software and ATM LAN Products.
Stock Fans, Efficient Networks looks to have topped out . It closed a tad higher on low volume. Efficient Networks has bounced 34% off of its 4/24 lows. Today we are looking for a retrace of about 50% of those gains.
KEY INDICATORS: EFNT
Sell short: $64.50 to $66.00
TARGET: $59.40 to $55.00
Type of Trade: Short Trade
STOCKS ON OUR SCREENS TODAY:
JDSU- It may rise to $95.8750 but it should end today under $ 90.8750 as it continues to sell off.
YHOO- It may bounce back to $125.00 but it should end up losing $120.00 today
AAPL- It looks to find $109.00
MACR- More to go down as it was shorted to $90.00 plus
NOK- Just off an all time high they should sell on rate worries
PWAV- It falls faster then it adds on 20.00... It saw 82.00 on NASDAQ 3221.00 We like 110.00 still 90 plus down!
SLDI- This one moves even faster than a speeding PWAV as it sells off
EMC- More to go on this one as 110.00 is a great possibility
CMRC- This thing saw 29.00 last time. If it loses 44.00 it is like a dropoff a cliff to 29.00!
CMGI- It should drop
DELL- It was 45.00 the last time the NASDAQ hit 3,221.00
Have a great day!
More to come.....