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The Play Of The Day
June 27, 2000
07:31 AM EST.
Good Morning Stock Fans!
The Stock Jock! (That's me!) will not be in the LIVE Trading Room today. I will be doing my civil duty! I would rather be trading in the room! I will return tomorrow.
ALERT EMAILS: Pro Trader Sago may send a few Alert Email updates today. Look for a steady diet of updates after the FED decision comes tomorrow.
Thanks Stock Fans!
Today's Economic News:
Day 1 FOMC Meeting
9:00 AM EST. Consumer Confidence.
Today's Earnings Calendar High Lights.
3 COM Reports after the bell today.
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NASDAQ RECAP: June 26, 2000, "NASDAQ Rallies Ahead of FOMC's 2 Day Meeting!"
Yesterday, the NASDAQ saved the best for the final 20 mins as it shook off profit taking earlier in the day that had taken it to 3859.00. Investors apparently felt conformable with the NASDAQ's "No rate hike in June!" sentiment built in. They decided to buy into the NASDAQ after it had shed over 200 points off last weeks 4073.00 high. Investors the Big Cap names on the NASDAQ as they sent shares of CSCO, INTC, DELL, and MSFT "The Big 5" higher into the close. The NASDAQ added on nearly 70.00 points in the final 20 minutes as it broke over 3900.00 and closed at its high of the day at 3914.51 ( +69.59). The only downside to the rally was the volume was less then 1.3 billion shares, a 10 day low on the NASDAQ.
NASDAQ OUTLOOK TODAY: June 27, 2000 By The Stock Jock!
" The NASDAQ May Should Be on Hold Today As It Hopes The FED Is!"
Stock Fans, Today I look for the NASDAQ to trade in a rather narrow range as hope of the FED on hold in June cause the NASDAQ to be on hold in overall trading today, and tomorrow until we hear the FED at aprx 2:03 PM EST tomorrow.
With that in mind the NASDAQ could trade today as high today as 3936.00 ( Last Thursday's close ) I don't except it to break over 3936.00 today as that level should act as resistance to the upside. as it should have many investors taking a wait and see attitude. I do want to point out however if the NASDAQ loses 3900.00 today it could cause other investors to lock in profits. The NASDAQ seems to have no rate hike figured in to its trading already. However if it drops today investors may take more profits as this market has shown in the past nothing is a for sure.
I will then look to play the plays
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Today's Play of The Day is: ParaGain (NASDAQ: PAIR )
PairGain (NASDAQ:PAIR) is the leader in the design, manufacture, marketing and sale of DSL networking systems. Service providers and private network operators worldwide use PairGain's products to deploy DSL-based services such as high-speed Internet access, remote LAN access and enterprise LAN extension.
PAIR has had a nice run of late. it broke what had been all 52 week resistance of 35.50-36.00 yesterday as it added on more then 2.00 points on increased volume of over 1.2 million going as high as 38.00 before it closed at 36.3750. If PAIR can hold 36.00 today it could trade over 40.00 today. I like how the stock broke out yesterday on more volume. It looks to be a great play for adding gains today.
KEY INDICATORS: PAIR -(LONG)
Buy Area: 36.00-36.50
Sell Stop: 33.8750
TARGET: 40.00
Time Frame: today
Type of Trade: daytrade
BONUS PLAY SJ- New Era Networks (NASDAQ:NEON)
New Era of Networks, Inc. (Nasdaq: NEON) is the premier provider of e- Business integration software platforms, products and services for the New Economy. NEON's platforms are the most comprehensive in the industry, serving the full range of corporate e-Business integration needs. Drawing on proven technology and years of experience, NEON integrates and automates e-Business processes, helping companies bring end-to-end business functionality to the Internet in the shortest possible time frame. In addition, NEON products help companies establish direct, electronic links with customers, suppliers and partners; build and participate in net markets; and distribute and access information using wireless technology. For more information, call 800-815-6366 or visit www.neonsoft.com.
New Era (NASDAQ:NEON) had news yesterday that cuased the stock to break out over 5.00 in afternoon trading. I see the stock as having over a 50% chance of giving away 50% of those gains and then perhaps going higher as it looks to take out nearly 90 day resistance.
KEY INDICATORS: NEON
Buy Area: 37.1250-37.6250
Sell Stop: 33.8750
TARGET: 42.00-43.25
Time Frame: 1-4 days
Type of Trade: swing trade
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Today's Bonus Play's: By Pro Trader Marc (Sago)
BONUS PLAY #1 Jabil Circuit, Inc (NYSE: JBL)
Jabil Circuit, Inc. is a worldwide independent provider of electronic manufacturing services (EMS). The Company designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in the communications, computer peripherals, personal computer, automotive and consumer products industries. The Company offers complete turnkey EMS solutions that are responsive to customers' outsourcing needs. Its work cell business units are capable of providing integrated design and engineering services, component selection, sourcing and procurement, automated assembly, design and implementation of product testing, parallel global production, systems assembly and direct order fulfillment services and repair and warranty services.
Stock Fans, Jabil Circuit is looking to break out. The sector group Electrical Products is on the move. It has moved into the number 5 position knocking out several of the oil sector groups. Jabil Circuit's has a growth rate of 80% and EPS rate of 96. Earnings and sales have consistently grown. The timing indicators look ripe for this Company to pop!
KEY INDICATORS: JBL
Buy Area:$43.75 to $44.25
Stop:$40.71
TARGET:$47.25 to $48.68
Time Frame: 3 to 10 days
Type of Trade: Swing Trade
Daytrade for $.50 - $ .75 point scalps. Avg. daily price range $2.39
BONUS PLAY # 2 Advanced Digital Information Corp (NasdaqNM: ADIC)
Advanced Digital Information Corp. provides hardware and software data storage solutions to the open systems marketplace. Along with its value-added resellers, original equipment manufacturer (OEM) partners and customers, the Company incorporates its products and the its service and support operations with third party hardware and software products to deliver reliable, flexible and scalable storage solutions. The Company's storage solutions are designed to enable organizations to organize, protect and retrieve complex mission-critical data. The Company's storage management software is an integrated family of software products. The Company's sales channels include a global network of resellers and original equipment manufacturers, or OEMs, including Dell Computer, as well as IBM and Fujitsu Siemens Computers..
Stock Fans, this company was mentioned on CNBC last week with insiders buying and the insiders track record. They seem to know when the stock price is going to go up! Advanced Digital sports a PE of 34 and a growth rate of 39%. Sales and earnings have grown at a nice clip as well. The daily chart shows the stochastic and MACD timing signals as a buy. Volume has been increasing and it is time to play Advanced Digital!
KEY INDICATORS: ADIC
Buy Area:$16.25 to $16.75
Stop:$15.41
TARGET:$17.875 to $19.26
Time Frame: 3 to 10 days
Type of Trade: Swing Trade
Daytrade for $.50 - $.75 point scalps. Avg. daily price range $1.47
STOCKS ON OUR SCREENS TODAY: By The Stock Jock!
1. YHOO- It got hit yesterday. It lost 118.00 near close. It looks to bounce like it could bounce off 114.8750 today. If it holds 118.00 however it could make 124.00 today.
2. EBAY- I think I stole this one yesterday at 51.75 as play indicated. 50 looks to be solid support. My Nov 2000 target is 90.00 on this one. Sell Stop 44.00
3. EFCX- It added on 1.00 yesterday. I continue to hold it and watch for more gains.
4. LPTHA- it added on 5 Yesterday as it is in a hot sector.
5. GOAM- The news was released on it in after hours. It is partnering with HP. It could move higher today. Mentioned here under 12.00 now 16.50 5 days later!
6. NEWP: It got squeezed yesterday as it saw 107.00 on the ask. I remain short as this up and coming new economy stock should pull back today. If it breaks 110.00 I go long and look for 120.00 today. Otherwise I remain short.
7. EMLX- It has news today annoucing a deal with BRCD. I will cover my short on the news if this stock breaks 73.75. If it breaks 75.00 I go long and look for 80.00. it will need 4 million shares today to make a big move up.
8 INKT- it is already bouncing back in pre market. I like 127.00 today as a high.
9. IMNX- It added on yesterday. It could follow thruogh today
10. SBAS- Traded 3x its normal 30 day volume (1.6 mill) yesterday. it had news after the bell that it was selected to manage global software. Watch it today for further moves up.
11. FNSR- In a hot sector watch it close today
12. CYCL- Initiated as a Strong Buy at Lehman Brothers with a 30.00 target. It could see 22.00 in a few days. Nice volume yesterday
13. PAIR- A 52 week high was hit yesterday It could add on more today
14. CYTO- The stock may be accumulating as it traded in a very narrow range on 2 x its normal volume over 2 million yesterday.
15. ACCL Friday's HOT IPO saw 61.00 yesterday as I predicted. If it can hold 56.00 today it may see 70.00 It needs 5 million plus shares again today to get there.
16. EFNT- It hit my 5 day Target as it fell to 51.00 yesterday. I look for a bounce back today.
17. JDSU- its a leader but has profits to take. Today's predicted range 126.00 high 120.00 low. Short JDSU at 125.75 with 127.8750 Buy Stop: 2 day Target of 120.00. Looking for 5.75 points on JDSU of profit. I go long JDSU long term under 96.00.
18. WEBT- In the news with ORCL and VIGN yesterday. Its so solid, and cheap at current levels. I will add to my WEBT long position under 38.00 today. I like a November 2000 Target of 82.00.
19. SRNA- Had nice volume as it saw a new 52 week high
20. RBAK- I have been high on this one but 150.00 is a bit to high. I look for a pull back under 133.00 on this stock.
21. CRA- What news yesterday. Then it sold off I like 104.00 on this one as a spot to look for a bounce
22. RMBS- It went lower yesterday, then closed under Friday's high. I like this one at 107.00-108.00 for a move back to 113.00.
23. DCTM- I am going begin to watch this one I like the chart.
24. HNIC- Downgraded today. I like a bounce under 37.00 today.
25. QQQ- if it breaks 95.25. The NASDAQ is very close to 4k again. If it loses 93.00 the NASDAQ should test yesterday's low
Stock Fans Coming in JULY 2000!
*A Brand New CHAT! (Live Trading Room!)
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* LONG YARDAGE! ( Our New Longer Term Portfolio Service!)
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and Much More... Stay Tuned!
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Have a great day!
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