The Play Of The Day

June 14, 2000
08:13 AM EST.


The NASDAQ finally broke out of its narrow trading range yesterday. It traded in a range of 156 points. Yesterday, June 13, 20000 it traded as low as 3,695.00--a new (10 day low) as it continued its sell from Monday. It, however, went on a late rally after Fed Chief Allen Greenspan said nothing in relation to increase in interest rates in June. The Naz came off 3,795.00 (-72.00) to close up (+ 83.00) at 3,851.00. Volume, once again was on the low side as many investors may be waiting for economic data that points to a slowing.

Today's Economic Numbers: Due at 8:30 AM EST.

Consumer Price Index (CPI) May 2,000

Expected: .02% CPI
Expected .02% CPI Core (subtracts volatile food and energy)


Stock Fans, the NASDAQ will have all eyes on the upcoming (CPI) report due out this morning. If it’s tame then the NASDAQ may indeed take a shot at 3900.00 plus. If its not tame, or mixed (1 reading tame or unchanged the other not), then the NASDAQ should test the 3,670.00 area--its current 200 day Moving Average. It also still has a gap to fill in at 3,583.00- 3,695.00 ( 112.00 pts.)now. Yesterday, it filled in 34.00 points of its 148 point open gap in its current trading range.

The CPI, if its tame on both readings should give the NASDAQ more added confidence. It should then threaten the current 30 day high of 3893.00. However, it has shown to have resistance there as it was unable to achieve a new 60 day high falling short of 3,982.00--its current 60 day high by 89.00 points. If we truly do have economic slowing, then the CPI should lend more truth to a slowing environment.

The KEY NUMBERS on the NASDAQ today are most likely going to be based off the CPI. I will look for 3900.00 as a true break out level that could push the NASDAQ through 4,000 on a tame CPI. I will also look for that KEY AREA of support at 3790.00 on the downside if the CPI is mixed, and if its higher than expected. I will look for lower lows on the 10 day NASDAQ range--taking out yesterday's low of 3695.00 and then testing the NASDAQ current 200 day moving average of 3,670.00.

Today's Play of The Day is: Rare Medium Group (NASDAQ:RRRR)

Rare Medium (NASDAQ:RRRR) invests in next generation Internet companies and provides end-to-end Internet Services. Rare Medium incubates, finances and manages private companies and also makes strategic investments in independently managed companies that it believes possess superior Internet-focused business models. Rare Medium's Internet Services include development and authoring of business plans and strategies; strategic, creative and technological consulting for Web initiatives; on-line brand development and management; development of content for broadband and wireless applications; and launch of on-line commerce trading exchanges. Rare Medium leverages its Internet Services expertise to increase the overall success of the companies in its investment portfolio.

This former high-flyer went almost to $100.00 in March 2000 and was called a "baby CMGI" about 6 months ago. Off that heading, it became a very popular Internet Incubator play. With CMGI reporting better than expected numbers yesterday. I am looking for RRRR to get a boost today and perhaps take out the 24.00 area over the next few days as it should at its highly discounted price trade up nicely in sympathy of CMGI.

Buy Area: $18.43750-$18.8750
Sell Stop: $16.93750
TARGET: $24.00-$25.00
Time Frame: 2- 5 days
Type of Trade: Swing Trade

BONUS PLAY #1 Vishay Intertechnology, Inc (NYSE: VSH)

Vishay Intertechnology, Inc. is a leading international manufacturer and supplier of discrete passive electronic components and discrete active electronic components that cover a wide range of products and technologies including those in the computer, telecommunications, military/aerospace, and instrument, automotive, medical and consumer electronics industries. Vishay's line of electronic components is one of the largest available from any single manufacturer. The Company also manufactures one of the broadest lines of surface mount devices. Products primarily consist of fixed resistors, tantalum, and multi-layer ceramic chip film capacitors, diodes and transistors and, to a lesser extent, inductors, aluminum and specialty ceramic capacitors, transformers, potentiometers, plasma displays, and thermistors. The Company offers most of its product types in the increasingly demanded surface mount device form and in the traditional leaded device form.

Stock Fans, Vishay has a lot going for it. It has great numbers and a great chart. This Company was brought to my attention by a member on the desk. Vishay has a great pattern of growing its earnings. Earnings projections for 2000 are for an increase of 529%. Wow! Volume has been increasing over the last few sessions. I am looking to add to the portfolio if the buy
area is hit!

Buy Area:$50.00 to $51.00
TARGET:$56.10 to $58.65
Time Frame: 3 to 8 days
Type of Trade: Swing Trade
Daytrade for $.75- $1.50 point scalps. Avg. daily price range $4.82

BONUS PLAY # 2 Novellus Systems (NasdaqNM: NVLS)

Novellus Systems keeps booking new orders. The company makes semiconductor production equipment, including chemical vapor deposition systems that layer dielectric (insulating) material on semiconductor wafers, physical vapor deposition systems that layer conductive metals, and electrofill systems that deposit copper layers. The company's customers include Lucent and Texas Instruments. Novellus has regional headquarters worldwide; customers outside the US account for about two-thirds of sales. The Asian economic recovery and new chip making technologies, including shrinking dimensions, larger wafers, and copper interconnections, are boosting Novellus' sales.

NEW YORK (CBS.MW) -- Novellus and Tiffany will be added to the Standard & Poor's 500 Index. Novellus Systems (NVLS: news, msgs) will replacE Champion International (CHA: news, msgs) at the close of trading on June 16 because International Paper (IP: news, msgs) is acquiring Champion. The reconfiguration of indexes like those compiled by S&P is particularly significant because fund managers whose mutual funds track a particular gauge are required to buy shares of companies added to the relevant index and sell the names being deleted.

Stock Fans, we know that the index fund managers have to buy. The key is to get shares on the dip. Novellus earnings have rocketed. It sports a PE of 51. Earnings estimates for 2000 are for an increase of 228%. Cash flow is $.85 /share and has no debt. This ought to be fun to play today. If you have doubts about the action check out the bonus play from 6/7/00 with

Buy Area:$51.75 to $52.25
TARGET:$57.48 to $60.0875
Time Frame: 3 to 6 days
Type of Trade: Swing Trade
Daytrade for $.50 - $1.00 point scalps. Avg. daily price range $3.65


ISLD- It had a great run yesterday off $30.00. I look for it to pull back to $33.00 today
MSTR- It could re test $35.00 today
MFNX- This one looks good. It should hold $32.00 and find $39.00 in a few days.
EFCX- still alive at close, at nearly $11.00 it could still find $14.00 before sell stop
VVTV- It should bounce back today and see $25.00-$26.00 again.
MRVC- worked well for us yesterday. It may top out at just under 50.00
BVSN- It came on nicley into the close 2 more upside then a retrace
JDSU - One reason JDSU keeps running is perhaps ETEK closing July 1,
2000 If it follows YHOO (7/1/99) down 30% till (9/29/99 and VRTS (closed
NSOL on June 9 , 2000 down 22% in less then 3 days. ) then it could very well pull back to under $91.00.
YHOO- It looks like it wants to test $129.00 area before going over $150.00
EBAY- it looks solid at $65.00 for a nice bounce back to $72.00
MACR- It could run more with numbers coming in July 2,000!
ORCL- The KEY NUMBER here is 83.75 if it can break it then $88.00-89.00
could be arround corner.
DCLK- It has had trouble it may bounce back to $44.00
CMVT- It should retest the 80-81 area 3-5 days.

More to come....


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