The Play Of The Day
June 6, 2000
8:55 AM EST.
Good Morning Stock Fans!
The NASDAQ traded in a range of 100 points, a low of 3,765.00 - a high of 3,875.00 yesterday as it didn't give away any of its record gains of last week as it managed to add on 8.00 points. Closing up at 3821.00.
NASDAQ OUTLOOK TODAY: "NASDAQ 3,900 ?4,000!? OR 3,729.00 AND UNDER? We May find out TODAY: 3,790.00 MAY TELL US!
Not much to say today Stock Fans! The NASDAQ did break a KEY AREA where a triple top existed at 3,718.00 area and then managed to hold it. It would seem the NASDAQ has set up a very narrow "cautious trading range" of about 100 points going off yesterday's range. However this range could increase, and should one way or the other increase as it has a range of more then 425 points a week on average the last 3 months. The range could increase to break out of a BEAR MARKET to 4,039.00 blasting up and thru 4,000.00 or it could increase to the down side if it loses 3729.00. One thing is for certain its not going trade in 100 point range all week. Something has to give.
We'll watch these KEY LEVELS today:
1. 3,875.00-If its broken then the current 60 Day high on the NASDAQ is form 5/1/00 3982.00 It breaks this and it would almost seem certain its going go thru 4,000 and see 4039.00 ending the BEAR MARKET readings.
2. 3,790.00 This number I'll also watch close as the NASDAQ has had some support at this level the past 2 days as it had trouble breaking this area on Friday in the morning and then broke it late in the day after bouncing under it 2 times. If this number is broken down then it would seem a 3729.00 test is coming.
3. 3,729.00 - This number was as high as we got before the FED increased to .50 on the rates on 5/15. This is also where the NASDAQ gapped up to on Friday. If this number is broken to the down side investors may see that more rate hikes are coming as soon as June or they may not wanna bet they aren't coming. If 3729.00 is broken then the NASDAQ may fall all the way down to under 3600.00 as the gap is 148 points wide.
One last point Stock Fans! If the NASDAQ move say about 500 points this week up it could go as high as 4375.00 or it could go as low as 3,321.00. Something has to give the KEY LEVELS I have pointed out could very well give us a leg up on where its headed. From yesterday's trading the jury is still out on what way it goes!
Today's "Play of The Day!" is: Oracle Corp. (NASDAQ:ORCL)
Stock Fans! It looks as if the NASDAQ is going open up today! FLAT (boring!) Ok well if this happens then ORCL should open at about $80.25-$81.00. What I will be watching close for today is for ORCL to break $82.00 if it can break $82.00 then the NASDAQ may add to yesterdays high surpassing 3,875.00. The reason I point this out is ORCL has created a triple top at $82.00 in its trading range dating back to to 4/27/00. If it breaks this level then it could bust up to $90.25, that would be a 52 week high. If it can't break $82.00 then I will look to SELL ORCL SHORT as it could fall all the way back to under $75.00 if the NASDAQ loses 3,600.00. This stock is a good play today as it should have a range perhaps today or in the next 3 days that should lend further information to where the NASDAQ goes up or down!
KEY INDICATORS: ORCL (IF ORCL BREAKS $82.00!)
Buy Area: $82.25-$82.43750
Sell Stop: $79.25
Time Frame: 3-10 Days
KEY INDICATORS: ORCL (If it can't break $82.00!
Sell Short: $79.00-$78.6250
Buy Stop: $82.50
Time Frame: 3-4 Days (This Week)
RUN THE OPTIONS: ORCL If it BREAKS $82.00!
The JUNE 90's OPTIONS CALLS
RUN THE OPTIONS: ORCL If it LOSES $79.00
The JUNE 75's OPTION PUTS
BONUS PLAY #1 Netro Corporation (NasdaqNM: NTRO)
Netro Corporation is a provider of wireless networking equipment used by telecommunications service providers to provide businesses with high-speed telecommunications connections. The Company believes that its AirStar product is a flexible system that allows service providers to deploy wireless telecommunications services cost effectively and rapidly. The Company has engineered AirStar to support broad service rollouts and to operate at radio frequencies licensed for voice and high-speed data connections in different countries. The Company believes that AirStar is one of the first commercially available, high-speed wireless telecommunications systems to use a point-to-multipoint architecture in providing integrated voice and high-speed data connections. The Company targets service providers worldwide that have rights to wireless spectrum suitable for high-speed services or are planning to acquire rights to deliver high-speed services to subscribers.
ATLANTA--(BUSINESS WIRE)--June 6, 2000--Nokia Networks, the infrastructure arm of Finland-based Nokia Corp. (NYSE:NOK - news) and a global leader in mobile, fixed and IP networks, and Netro Corp. (Nasdaq:NTRO - news), a market leader in broadband wireless access equipment, today announced an original equipment manufacturer (OEM) agreement at the annual SuperComm 2000 conference being held in Atlanta, June 8-10
Wireless broadband waiting to burst
Stock Fans, the CEO of Netro was on CNBC this morning. The articles above say it all. Netro is 64.9% off of its 52 week high. It is not yet profitable, but has projections for profitability in 2001. Wouldn't be surprised to see this Company bought out. The weekly chart is at its sweet spot. Daily and monthly volume are increasing. Wireless broadband speeds faster than T1. Going to add 1/2 position faster than you can say T1 to the port on any dip.
Key Indicators: NTRO
Buy Area:$41.00 to $42.00
TARGET:$46.20 to $48.30
Time Frame: 3 to 7 days
Type of Trade: Swing Trade
Target by 7/20/00 - $60.00
Daytrade for $.50 - $1.50 point scalps. Avg. daily price range $3.90
BONUS PLAY # 2 PSInet, Inc (NasdaqNM: PSIX)
PSInet, Inc. is a global provider of Internet access services and related products to businesses. The Company provides dedicated and dial-up Internet connections in 90 of the 100 largest metropolitan statistical areas in the United States, and in 12 of the 20 largest global telecommunications markets, with operations in the United States, Canada, Europe and Asia. Other services include corporate Intranets, Web hosting services, remote user access services, multi-currency electronic commercial services, security services and voice-over-Internet services. As of December 31, 1998, PSInet Inc. had over 54,700 business customers in the aerospace, finance, communications, computer data processing and related industries, government agencies and educational and research institutions, as well as other Internet service providers. PSInet has two wholly owned subsidiaries, PSINetworks Company and PSINet Telecom UK Limited.
ASHBURN, Va., and ATLANTA, June 6 /PRNewswire/ -- PSINet Inc. (Nasdaq: PSIX - news), the Internet Super Carrier, today announced that it has opened a new 88,000 square foot global Internet hosting center in Atlanta, Georgia. The $54 million facility will serve as a world class international eCommerce center for businesses in the U.S. Southeast region that wish to offer unsurpassed e-business applications over the Internet. The center is located at 40 Perimeter Center East, Atlanta.
At the close of first quarter 2000, PSINet provided service to more than 98,000 corporate accounts, a 66 percent increase from the previous year, as well as over 360 ISP customers reaching more than 1.3 million end users. The company saw a 35 percent increase in worldwide hosting center revenue in the first quarter of this year
Stock Fans, I am following the volume. One day increase, 254%. Two day increase 56%. One month increase, 91%. Six month increase +123%. Yesterday there were 115 block trades. Can you say "under accumulation"? PSInet looks to be breaking out of an 8 week base. The daily and weekly charts look solid for an entry. Will buy a 1/2 position and add on weakness or strength.
Key Indicators: PSIX
Buy Area:$32.75 to $33.50
TARGET:$36.85 to $44.275
Time Frame: 3 to 6 days
Type of Trade: Swing Trade
Target by 7/20/00 - $48.00
Daytrade for $.25 - $.75 point scalps. Avg. daily price range $2.19
STOCKS ON OUR SCREENS TODAY:
AOL- It looks like AOL could break out if it can break $56.00 It could run to $62.00
RHAT- This one may sell off today.
YHOO- It should break 145.00 If the NASDAQ breaks 3,900.00 If the NASDAQ loses 3,729.00 this one could go back to $125.00
JDSU- It has a 2 day double top of $112.00. Its high over the last 60 days is $115.00 It would seem that if JDSU breaks $112.00 It going there then may not stop till $120.00 plus. If the NASDAQ loses 3,790 and falls back to 3,729.00 JDSU should fill in its first gap losing $100.00
MACR- It needs more volume to hld these levels.
WEBT - watch this one it could break $35.00
CMRC- It would seem the B2B stock have some profit taking
ARBA- Profit taking as well.
DCLK- This one breaks 55.00 If this NASDAQ can break 3900. If it can't then DCLK if the NASDAQ loses 3,729.00 DCLK should test $44.00 I go long at $44.00
More to come....
Have a Great Day!
More to Come.....