The Play Of The Day
June 8, 2000
08:45 AM EST.
Good Morning Stock Fans!
Today, I, (SJ!) will be hard at work on the exciting and new website enhancements that are coming to BIgPlayStocks.com in the future. I will be in and out of the LIVE Trading Room throughout the day! Plus Members Look for EMAIL Alerts throughout the day as the calls occur!
Yesterday, June 7, 2000 he NASDAQ rallied ahead of the Microsoft ruling as it shook off a flat session and added on 82.99 Points as it closed the session at 3,839.00. The NASDAQ was lead by who else but MSFT and a variety of other tech stocks as it appeared that investors--although not fully convincedbelieved that the MSFT ruling was already built in to the market. This lack of conviction could be explained by the low volume that the NASDAQ saw for the 4th straight day after trading almost 2 billion last Friday June 2, 2000.
NASDAQ OUTLOOK TODAY: "NASDAQ RALLY - USE CAUTION!"
The NASDAQ looks very much like it could RALLY today off the Microsoft (NASDAQ:MSFT) ruling. The Techs are up in pre market as the NASDAQ futures have been as high as 52.00 today and as low as 24.65 (where they currently are. MSFT has traded as high as $73.00 today (2,300 share Instinet at 04:33 AM EST) and as low as current levels at $71.1250 (696,000 shares currently).
Jobless Claims were released today without much of an effect on the Bond Market or the Futures. The Jobless claims were up 30,000 but adjusted for seasonal purposes. The Markets will now wait for the PPI (Purchasers Price Index ) due out tomorrow June 9, 2000, at 08:30 EST.
Stock Fans! The move that the NASDAQ has enjoyed since May 24, 2000 when it traded at 3,042.00 (a 200 day low) has been a hind sight is 20/20 situation--one where its easy now to look back and say NASDAQ stocks especially the hammered Techs and Internets were "oversold." The NASDAQ move up to current 5, 10 and 30 day highs of 3884.00 reached this Tuesday, June 6, 2000 of this week is one that has seen the NASDAQ "Market Makers" (MM's) unload large quantities of stock that they had accumulated between May 1, 2000 (NASDAQ 3,982.00) and May 24, 2000 (NASDAQ 3,042.00). The amount of stock that was sold by these MM's has been quite a lot according to the RSI--with increased volumes for the days of May 24- June 2, 2000. The RSI is an indicator that shows traders whether or not stocks are oversold or overbought. That indicator currently is showing that stocks are overbought. The "Tight Range" and the fact that the NASDAQ has only been able to add on 94.00 points since the Friday, June 2, 2000 220 point explosion may illustrate that investors aren't exactly selling, but may be unwilling on current news in the market to take the index much higher. Something important to note is that many KEY NASDAQ stocks traded much less volume over the past few days, yet have still managed to increase their prices. Furthermore, the NASDAQ hit its current 30 day high on Tuesday, June 6, 2000 at 3,884.00 did cause a sell back off almost immediately that day, and a commensurate fall back over 100 off that mark to close at 3,756.00.
The NASDAQ is very hard to read currently. The supply of stock would appear to be low so that any kind of big buying into the NASDAQ at present could send it much higher. The CAUTION is the fact that as investors buy into the NASDAQ high prices the possibility of investors booking profits increases. When this happens, the investors that are busy buying in end up selling out into a market that may have no buyers. The only avenue out then is to sell to NASDAQ (MM's) who know full well that there is a lack of demandresulting in prices dropping fast.
The fact of the matter is that the NASDAQ (MM's)sell stock for more and then "eventually" (that's the KEY word! "eventually!) get that stock back for less! Then, as we saw on May 24, 2000, when they have a lot of stock that they hold poised to sell, then the buyers come back in oversold conditions and buy it back for more.
Currently, I stress "Enjoy" the gains but use CAUTION! It may be too risky
in this NASDAQ to use SHORTS to look for a big NASDAQ drop! I will instead look to raise cash and buy back into the dips. The NASDAQ undoubtedly, as the past few sessions have shown is OVERBOUGHT! The question is when does "eventually" happen?
To answer this question we might want to just look at 3982.00 -- at this level that the NASDAQ was so close on May 1, 2000, it could TASTE! 4,000.00 -- It came within 18 of that magic level! However, it was at that point that the NASDAQ would drop all the way back and by May 24, 2000, less than 30 trading days level the magic had changed from 18 off magic 4,000 to 42 points off the dreaded 3,000. In less than one month a move towards 4,000 was met with a drop to almost lose 3,000!
The NASDAQ sets up shop today 144 points off 3,982.00. Looking at it from an opening aspect, it would seem that if NASDAQ at 3982.00 is the top, then a nice 144 point move up is coming. This could indeed happen. I just want to point out that as the index goes higher, then more investors will look to book profits. The NASDAQ is also at a level as I described early that can indeed see an increase quickly due to low supply as many investors refuse to sell stock. The NASDAQ looks great right now as we open to ride the wave higher! I am here to let all Stock Fans know that as it goes higher a major sell off is set up!
NASDAQ 3,790.00 IS THE KEY!
The KEY number today is 3,790.00. If the NASDAQ can hold it, then it looks great to be LONG. If it cant hold it then raising CASH or LOW RISK, short term SHORTS would seem to be the order of business. The level for a high tide to watch today might be 3884.00. If we look at that number, it is the current 30 day high as well as the current week high (5 day high) for the NASDAQ. That number of 3,884.00 is 98.00 points off 3982.00. If the NASDAQ were going to set up a buffer, it would seem to be right there. I must point out that CAUTION should be used with LONGS today as nice profits are in Ones pocket at 3,884.00. If we also look at 3,982.00 - 3,221.00 the previous 30 day and 200 day lows, we see that 3,042.00 was 179 points lower than that. If we look at the NASDAQ closing number yesterday of 3,839.00 we see that the NASDAQ has gone about as high as it did off 3221.00all the way to 3982 as it has currently from 3,042.00 - 3884.00. If you do the the math, then youll come up with these numbers!
3,982.00-3,221.00 = 761.00
3,884.00-3,042.00 = 842.00
The increase in the run up of (842.00-761.00= 81 ) So, in essence the NASDAQ has gone 81 points higher than it did off 3,221.00 in April to May 1, 2000, 3,982.00. I say one last time while watching the NASDAQ trade today-- remember as 4,000 looked to be so easy to grab on May 1, 2000,--it ended less than one month later at nearly sub 3,000.00! The NASDAQ would appear to be traded very much like it did then. I will enjoy the rally but look to RAISE CASH as the NASDAQ nears 3,900.00
NO PLAY - TODAY: Due to me being away till late last night or early this morning working on site upgrades. SAGO instead has 3 BONUS PLAYS Today!
Thanks SAGO for picking up the SLACK!
I will try very hard to send a BREAKING STOCK today to ALL MEMBERS in place of NO PLAY as the day unfolds later. If it happens look for it!
SAGO'S BONUS PLAYS!
BONUS PLAY #1 BJ Services Company (NYSE: BJS)
BJ Services Company is a provider of pressure pumping and other oilfield services serving the petroleum industry worldwide. The Company's pressure pumping services consist of cementing and stimulation services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. Other oilfield services include product and equipment sales for pressure pumping services, tubular services provided to the oil and natural gas exploration and production industry, commissioning and inspection services provided to refineries, pipelines and offshore platforms and specialty chemical services.
Stock Fans going back to the well for this one! BJ Services came up on my oversold and bouncing screen. Stochastics are primed for a bounce. Earnings for BJS are quite impressive for this sector. 2000 earnings look to increase by only 942%! Looking to swing with the Oil folks and try to make the money back I am paying in higher pump prices.
Key Indicators: BJS
Buy Area:$66.00 to $66.50
TARGET:$73.15 to $76.48
Time Frame: 3 to 7 days
Type of Trade: Swing Trade
Daytrade for $.50 - $1.50 point scalps. Avg. daily price range $3.69
BONUS PLAY # 2 24/7 Media, Inc. (NasdaqNM: TFSM)
24/7 Media, Inc. is a global provider of end-to-end advertising and marketing solutions for Web publishers, online advertisers, advertising agencies, e-marketers and e-commerce merchants. The Company provides a comprehensive suite of media and technology products and services that enable such Web publishers, online advertisers, advertising agencies and e-marketers to attract and retain customers worldwide, and to reap the benefits of the Internet and other electronic media. The Company's solutions include advertising and direct marketing sales, ad serving, promotions, email list management, email list brokerage, email delivery, data analysis, loyalty marketing and convergence solutions, all delivered from its industry-leading data and technology platforms. The Company's 24/7 Connect ad serving technology solutions are designed specifically for the demands and needs of advertisers and agencies, Web publishers and e-commerce merchants
Stock Fans 24/7 Media is bouncing off a 7 week base. This is one of the best technical indicators I know of. Volume has exploded. Sales are increasing nicely. They do not have any profits at this point. I like the advertising sector and think this is a golden opportunity for a larger fish to take out the smaller fish! Looking to buy on the 10:00-10:30 dip.
Key Indicators: TFSM
Buy Area:$19.50 to $20.50
TARGET:$22.55 to $24.58
Time Frame: 3 to 4 days
Type of Trade: Swing Trade
Daytrade for $.50 - $1.00 point scalps. Avg. daily price range $2.08
BONUS PLAY # 3 Priority Healthcare Corporation (NasdaqNM: PHCC)
Priority Healthcare Corporation is a national distributor of specialty pharmaceuticals and related medical supplies to the alternate site healthcare market and is a provider of patient-specific, self-injectable biopharmaceuticals and disease treatment programs to individuals with chronic diseases. Through Priority Healthcare Distribution, the Company sells over 3,500 SKUs (stock-keeping units) of specialty pharmaceuticals and medical supplies to outpatient renal care centers and office-based physicians in oncology and other physician specialty markets. Through Priority Healthcare Pharmacy, the Company fills individual patient prescriptions for self-injectable biopharmaceuticals. Priority Healthcare Pharmacy also provides disease treatment programs for hepatitis, cancer, human growth deficiency, rheumatoid arthritis, Crohn's disease, respiratory syncytial virus infertility, the complications of HIV and others
Stock Fans another oversold and bouncing play on strong volume. Priority Healthcare sports a growth rate of 64% and has a PE of 48. Earnings and sales have consistently increased. Earnings projections for 2000 and 2001 look very solid. Looking to buy on the pullback!
Key Indicators: PHCC
Buy Area:$52.00 to $53.00
TARGET:$58.30 to $60.95
Time Frame: 3 to 7 days
Type of Trade: Swing Trade
Daytrade for $.50 - $1.50 point scalps. Avg. daily price range $3.11
STOCKS ON OUR SCREENS TODAY:
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More to come....
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