The Play Of The Day

July 14, 2000
08:52 AM EST.

Good Morning Stock Fans!

NASDAQ NUMBERS: July 13, 2000
Open: 4128.81
High: 4193.24
Low: 4111.16
Close: 4174.86

NASDAQ RECAP: July 13, 2000

The NASDAQ added on yesterday right from the get go. The question many had was. Could YHOO impressive numbers follow through and carry over the another day of increases in the index. The answer was a resounding YES! The NASDAQ opened over 4100.00 and never gave up the number all day as it held opened at 4128.00 and then had a little profit taking as it fell back just slightly to 4111.00. However there's where more buyers came in and bought into the Techs as they rallied to go as high as 4193.24 up nearly 100 points. The Bio Techs didn't participate as they succumbed to profit taking as they often do in an environment that is less worried about rising interest rates. The volume was also quite impressive as it also was over the 1.7 billion mark.


Stock Fans, with earning this past week from some KEY NASDAQ Stocks being very positive as well as MOT hitting its number and yesterday's employment numbers coming weaker then expected. The NASDAQ it would seem to has just one more hurdle to clear this week. Indeed it's a big one the June Price Purchasers Index (PPI) It will be released in just under 30 mins and its expected to show a small increase over May's but to come in continuing to show the Fed has done its job and allowed the NASDAQ and the rest of the US Stock Market a soft landing.

True, many of the BEARS feel the NASDAQ has gone to far again to fast. However it has also been nearly 1,000 points higher then it currently sites at 4174.86. What is also very positive is the volume has once again returned? The flip side is many investors as well as traders are now looking for an excuse to sell off the big profits they have seen over the last 3 days since the NASDAQ has firmly busted through what's was major resistance 4077.92.

Today its all up to the PPI that simple. I look for it to be tame. I guess the logic I use is the PPI is ahead of the CPI, and the CPI to the extreme high side in April was completely unexpected. With the CPI coming on Tuesday it would seem to me to be very odd to have this number today crush the market. Many key economic indicators have already shown for more then 2 months now the economy is slowing. However for the most part the big tech names have reported strong numbers thus far. If its earnings that increase stock prices then it seems to this trader atleast for now. That everything seems to be in order.

With that said. I look for 4200.00 to e taken out today and the NASDAQ to find over the next 2 trading days ahead of the CPI a high of 4250.00 I do see it as taking today's number and adding on maybe 75.00 more points. Then I see the index seeing some well deserved profit taking. I am hopeful the NASDAQ doesn't drop back more then to 4111.00 yesterday's low and holds 4100.00 as getting back under it once again sets up an index that comes very close to the KEY NUMBER now 4077.92. If that's lost then 3820.00 is closer then 4300.00 and the NASDAQ may decide to test its current 10 day low.

Again the PPI will decide it do we gap up to 4250.00 and near 4300.00 or do we drop back and test 4078.92. I think either way 4000.00 holds till the CPI upcoming this Tuesday. Remember 4052.00 the July 4th high was followed by a drop of over 200.00 points (down 232.00) only to come back and then go to 4193.00 (141 points) higher and establish a new high. That kind of action shows investors are more then willing to again invest into this market.

4200.00 A launching pad to atleast 4381.00
4077.92 April 14, high that was taken out on Tuesday must now hold.
4462.00 The NASDAQ low on March 21, 2000 ahead of FED's March 22, 2000 .25 rate increase.
4111.00 yesterday's low and the wall to hold 4100.00
4029.00 The NASDAQ current 3 day low and psychological 4000.00 hold

Today's Play of The Day is:

Buy Area:
Sell Stop:
Time Frame:
Type of Trade:

This stock has been one even I have forgotten about for a while. It is best known for Paul Allens investing in it over 2 years ago. The stock is in a major uptrend as it broke its 200 day moving average yesterday. It still however remains very oversold. This stock is currently created a formation that could cause it to break out and go as high as perhaps 68.00 even 70.00 Yesterday's volume was very impressive as it added on more volume. I am looking for EBAY's upgrade to help this one as it should move much higher over the next 2 - 3 days.

Buy Area: 51.00-51.3750
Sell Stop: 47.50
1- 3 DAY TARGET: 58.00-59.50
1-5 DAY TARGET: 65.00-66.00 +
Type of Trade: daytrade/ Swing trade



BONUS PLAY #1 ADC Telecommunications (Nasdaq: ADCT)

ADC Telecommunications, Inc. provides hardware and software systems and integrated solutions that enable customers to build and upgrade communications networks. ADC's products include hardware and software systems and integrated solutions. Broadband Connectivity products provide the physical contact points for connecting different communications system components and gaining access to communications system circuits. Business Broadband products enable telephone companies to deliver voice, video and Internet/data services to their business customers. These products include transport and access systems. Residential Broadband products include digital transport systems that enable cable TV operators to transport high-speed digital signals for two-way voice, data, Internet and video services to homes. The Integrated Solutions products include consulting, software and systems integration services to aid customers in integrating ADC and other complementary products in communications networks.

Stock Fans, we played this back on 4/14 and on 5/4 for a nice run. ADCT is one hot stock. A hot stock gets hotter in a hot market. They report earnings on 8/21 and they are expected to report $.30. This stock has an accumulation, relative strength and timing rating of A. This is one of the best of the best. It has great earnings and sales increases quarter over quarter. Buying on the stochastic dip!

Key Indicators: ADCT
Buy Area:$77.00 to $77.75
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.75 to $1.25 point scalps. Avg. price range $4.50

BONUS PLAY # 2 ASM International N.V (NasdaqNM: ASMI)
ASM International N.V. designs, develops, manufactures, and provides service and support for equipment used to produce semiconductor devices. The Company produces equipment and develops manufacturing processes in both segments of the semiconductor equipment market: the front-end (wafer processing); and the back-end (assembly, packaging, and materials). Front-end semiconductor equipment performs various fabrication processes in which multiple firm layers of electronically insulating or conducive material are deposited onto a wafer substrate creating completely integrated circuits. The Company's products in the front-end market segment perform chemical vapor disposition, including epitaxial deposition, diffusion/oxidation, low pressure chemical vapor deposition and plasma enhanced chemical vapor deposition. Back-end semiconductor equipment separates processed wafers into individual integrated circuits (IC) and assembles, packages, and tests each circuit.

Stock Fans, ASM International is in a hot sector. It has a record of strong earnings. The last 4 quarters the most recent first, +223%, +500%, +350%, +78%. Volume has been way above average the past 2 days and I am looking to buy while the timing indicators look solid and are climbing.

Key Indicators: ASMI
Buy Area:$24.50 to $25.00
Time Frame: 2 to 3 days
Type of Trade: Swing Trade
Daytrade for $.25 - $.50 point scalps. Avg. daily price range $1.33

1. BBSW - Beat the Street by 2 cents excluding charges. Perhaps the news was sold. I still like 41.-42.00 on it soon
2. PKTR- Broke out yesterday to 36.00 again will it hold if it can get 40.00 it could break out big.
3.GNSL - Pulled back on lower volume looks good to hold 20 and make 26 mybe 30 again 5 days
4. CRA - oversold and a real gem to run to 98.50 105.00 soon
5. JDSU- Closed over 105.00 may run to 113.00 today 110.25 big resistance 5 day high 116.75
6. EBAY- Upgraded 62.00 is next then 30 day high is 79.31250
7. PCLN- Off EBAY it should add on today
8. DCLK- 36.00 was resistance it broke it now can it get 40.00
9.ENGA- Nice move yesterday could go higher
10. CNET- It held 30.00 that was great now can it hold 28 if it can it finds 33.00 next
11. VNTR- It dropped off into close but still was nice gap to fill 20.50
12. FLEX- Look out it may run
13. EXAP- Up on big volume no news will watch close
14. IMRS- earnings are coming this one has been hot before
15. ANCR-Double top on the break out it might be a short candidate.
16. NETE-busted out. Lets see if it can add on volume.
17. ELNT- Nice numbers reported 63.00 has been resistance this one could really go.
18. CLIC- took off on ARBA yesterday. It broke out can it follow through
19. APNT- Look like this one has topped on major explosion Friday's
20. EMLX- It looks good to maybe see 76.00 its current 10 day high it moves fast
21. IFCI- Nice volume could see 29.00 soon
22. RIMM- 65.00 is R S= 60.50. 67.00 busts this to 76.00
23. IATV-heating up worth watching.
24. RRRR with Nets running RRRR may go.
25. NTRO- WOW SAGO what a call it may have some profit taking after an explosion.
26. JNIC- Nice find at current levels.
27. PWAV- Support is at 41.00 now.
28. DIOD- Splits after today 5-2 it could make a run higher 48.00 ahead of that.
29. COBT- This one may see more action.
30. EFNT- 90 could send it to 105.00 110.00!

Have a great day!

More to come.........

Stock Jock!

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