The Play Of The Day
May 9, 2000
08:41 AM EST.
Good Morning Stock Fans!
Today- "ALL EYES ON Cisco Systems (NASDAQ:CSCO)
Reports Earnings 20 Mins After Today's Close.
SJ's POSTION YESTERDAY: Short - YHOO, JDSU, CMRC, EXDS, AETH, VRTL
NASDAQ MARKET OUTLOOK TODAY:
I will be watching one KEY NUMBER today on the NASDAQ 3,721.00. That was as high as the NASDAQ was able to get about 15 mins into the close after it had sold off of Friday's close of 3,816.00. In the final 15 mins of yesterday's trading the NASDAQ went from 3,721.00 to a close of 3,669.00 down almost 150 points. I will look for the NASDAQ to gap up today slightly, lead by CSCO to perhaps as high as 3,717.00 area. I then like the NASDAQ later in the day to sell off, once again lead by CSCO and go as low as perhaps 3,603.00 area. I then like the NASDAQ to turn itself around as CSCO should lead the NASDAQ back. I like CSCO to turn up off a low of $60.6250 area and make a run into close bringing up the NASDAQ off its low of the day and to close right about where it began 3,669.00. The volume should be low again today as all eyes after CSCO will focus on the upcoming CPI and PPI ahead of the May 16, 2000, FED Meeting.
Today's Play of The Day is: Verio (NASDAQ:VRIO) (SHORT)
The stock ran up big yesterday. It will be bought for 60.00 or so in cash but that is a long way off, and VRIO should pull back as the NASDAQ does in front of FED. VRIO should have sellers leave it in mass once it loses $55.00. The volume is KEY today it looks very much like lower volume will send this one lower as the price drops on no buyers in a down market. VRIO may indeed trade over 60.00 again but it looks more like it tests 50.00 then 60.00 in the near future as investor's excitement of it being bought dissipates.
KEY INDICATORS: (VRIO SHORT)
Sell Short Area: $59.93750-$58.25
Buy Stop $ 62.3750
Time Frame: Today
PRO TRADER -- "SAGO'S BONUS PLAY'S!"
BONUS PLAY #1 Chesapeake Energy Corporation (NYSE: CHK)
Chesapeake Energy Corporation is an independent oil and gas company that primarily is engaged in the exploration, acquisition, development and production of onshore natural gas reserves in the United States and Canada. Chesapeake owns interests in approximately 5,300 producing oil and gas wells concentrated in three primary operating areas: the Mid-continent region (Oklahoma, southwestern Kansas and the Texas Panhandle); the Gulf Coast region (the Austin Chalk Trend in Texas and Louisiana and the Tuscaloosa Trend in Louisiana); and the Helmet area of northeastern British Columbia. During 1998 the Company produced 130.3 Bcfe (billion cubic feet equivalent), of which 72% was natural gas, making Chesapeake one of the top 20 public independent oil and gas companies in the United States as measured by production..
Stock Fans, hot sector for hot weather. Very few things are getting attention and volume. But the Oil and Gas Drilling sector are getting attention Same group as OEI and APA. Chesapeake Energy Corporation has a nice track record of record earnings. Last 4 quarters with the most recent first +171%, +103%, +263%, +150%. Relative strength is 87 and has an Accumulation rating of "A". This stock is in breakout mode and hopefully we can catch the low for an entry.
KEY INDICATORS: CHK
Buy Area:$3.85 to $4.15
TARGET:$4.56 to $4.7875
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
BONUS PLAY #2 China.com Corporation (NASDAQNM: CHINA)
China.com Corporation is a leading pan-Asian Internet company built on an integrated operating and investment business model. The Company provides a full range of Internet services that build e-business strategies and solutions, distribute content via its portal network, and sell services through online advertising. China.com also invests in synergistic Internet companies throughout the Asia-Pacific region that add value and depth to its services and portal channels. Through China.com's investment program, the Company has invested in more than 40 Internet companies around the world. The Company has over 1,300 employees in 24 offices across 10 Asian markets, including Australia, Hong Kong, Japan, Korea, Malaysia, Singapore and Taiwan. Major corporate shareholders include America Online Inc., Mitsui & Co. Ltd., Xhinua News Agency, New World Infrastructure Limited and 24/7 Media Inc.
Stock Fans, China stocks are back! Greenspan thought the deal was good and that is icing on the cake. The fact is, China is one big market that our beloved Internet stocks can sell to! Growth baby! China as you might imagine has no earnings and this adds to the overall risk of this play. It sports a relative strength of 93. Sales have grown over the last four quarters with the most recent first, 999%, 471%, 174%, 98%. I like this stock as a longer term play, but I am putting numbers in for the short term players. The price is very volatile so I am recommending buying a 1/2 to 1/3 position and add on strength or weakness.
KEY INDICATORS: CHINA
Buy Area:$30.50 to $31.25
TARGET:$34.375 to $35.95
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.50 to $1.50 point scalps. Avg. price range $3.45
STOCKS TO WATCH TODAY: THE NETWORKERS: (NT,NN, LU) ON CISCO REPORTING:
KEY NETWORKER TODAY:
Nortel Networks (NYSE:NT)
NT splits 2 for 1. The 50% drop in the stock price of NT should allow many more to buy into NT today and that should send it up. However the 100% increase in stock will should be tested Wednesday Morning as it should have plenty of sellers on CSCO reporting tonight.
Buy Area: $54.00-56.00 ( split adjusted price)
Sell Stop: $52.1250
Time Frame: today
Type of Trade: daytrade
(Higher Risk Play) good odds!
SHORT NT ON CLOSE:
NT should get hit with NN and LU as CSCO doesn't appear to be able to report numbers that can support its high valuation
KEY INDICATORS: NT -SHORT ON CLOSE:
Buy Stop: $
Type of Trade: overnight ( 1-2 days)
STOCKS ON OUR SCREENS TODAY:
VRTL- Look for it to drop more later in the day towards our target
JDSU- It may test 86.00 today. It should bounce just under $85.50
YHOO- If it breaks 122.00 I will cover my short and look to short it at the top as it looks to test 1113.00 then 107.00 soon
APPL- It is a steal under $96.00
PWAV- It should gap maybe to 190 then sell off again
ANCR- This one should lose volume and pull back
EXDS- It looks like it is going test $77.00 soon
WINK- Up on news and really low volume. It has to drop
SAPE- It was put in S and P last week ran up big it should drop back 1/3 as much
AETH- It may bounce back but short it again over $153.00-$157.00
DCLK- 63.00 is top I will short more there.
Have a great day!
More to come....
and BigPlayStocks.com TEAM OF PRO TRADERS!