The Play Of The Day
July 26, 2000
08:45 AM EST.
Good Morning Stock Fans!
Attention LIVE Trading Room & PLUS Members:
I will not be in the LIVE Trading Room, nor will there be Alert Emails tomorrow on July 27, 2000. However, BPS.com Pro Trader Sago will be manning the room. He will be backed by David, and Mateo. There will as always be a host of other pro traders working as a team.
NASDAQ OUTLOOK TODAY:
The NASDAQ Futures are down 35.00 currently today. EBAY was the Key
NASDAQ stock to report numbers last night. It looked like they did ok as revenues increased almost 50%. However, it wasn't good enough and EBAY off nearly 20.00 points from its July high went as high as 58.8750 on the news, but was unable to hold it and dropped back to 55.50 and now is indicated at 53.00.
JDSU will report numbers today on the bell, as well as go into the S&P.
It could make a run late in the day, and based on such stocks as BRCM,
and YHOO going into the S&P it could really run. However, to report
earnings and go into the S&P is something I have not seen before. PALM
also goes in today.
Not a whole lot of news to push this index higher. It would appear to me that all of yesterday's gains will be gone on the open. It may set up 3987.00 as support. If it can hold then maybe we can get back yesterday's high, and hold this range. It still would appear to me that the Index needs to go higher, then drop on momentum to bust what has been consolidated support for the better part of June and July that of 3820.00. If the NASDAQ is able to not record another new 3 day low today and hold 3955.00, it might be ok for another day as we will then wait for JDSU, and the likes of INSP to have their shots to give it a much needed shot in the arm.
Today's "Play of The Day!" is: 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.
This stock has been on a tear lately as big volume has managed to push it into the mid 40's and keep it there. The big buy point on this one is it broad band abilities in its sector. According to its trading graph of late, it would appear shares of ADCT have strong support just under 43.00. Today, with the NASDAQ opening lower I am going look for 41.50 to hold on this one and set a sell stop just under 40.00 and not chase this stock. I do believe based on volume and trend of late that it does go higher, but may use today's open to shake out some investors. I like this one to empty out and then make a run perhaps to 48.00 over next 3-5 days.
KEY INDICATORS: ADCT
Buy Area: 41.43750-42.25
Sell Stop: 39.8750
1-3 DAY TARGET: 45.8750-46.75
1-5 DAY TARGET: 47.6250-48.00
Time Frame: swing trade
PRO TRADER SAGO'S BONUS PLAY'S:
BONUS PLAY #1 Go2Net, Inc (NasdaqNM: GNET)
Go2Net, Inc. offers, through the World Wide Web, a network of branded properties and aggregated content in the categories of search and directory, small business and electronic commerce services, personal finance and multi-player games. The Company also offers electronic commerce solutions to online merchants by providing payment authorization and other services to small and medium-sized businesses. The Company is using its proprietary, scalable technology platforms to develop private label portal and e-commerce content solutions for strategic partners to extend the distribution of its products and services.
Stock Fans, Go2Net is breaking out of its current base on strong volume. Go2Net reported great numbers for the quarter ending 6/30. What surprises me is how consistently strong their earnings have been. They have a PE of 90, cash flow per share of $.95, 0% debt. Funds are accumulating. Go2Net is 44% off of its 52 week high. Looking to take a position on any weakness.
KEY INDICATORS: GNET
Buy Area: $60.50 to $61.50
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
Daytrade for $.50 - $ 1.00 point scalps. Avg. daily price range $3.91
BONUS PLAY # 2 Costco Wholesale Corporation (NasdaqNM: COST)
Costco Wholesale Corporation operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self-service warehouse facilities, enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets. Costco's warehouses generally operate on a seven-day,68-hour week, and are open somewhat longer during the holiday season.
Stock Fans, buying support with a tight stop. Costco has held this level and the timing indicators are turning up. Costco has a PE of 24 and cash flow per share of $1.72. Looking for a small slice out of the middle!
KEY INDICATORS: COST
Buy Area: $31.00 to $31.50
Time Frame: 3 to 10 days
Type of Trade: Swing Trade
Daytrade for $.25 - $.50 point scalps. Avg. daily price range $1.40
PRO OPTIONS TRADER MATEO OPTION PLAY:
Yahoo! Inc. (NasdaqNM:YHOO)
Yahoo! Inc. is a global Internet communications, commerce and media
company that offers a comprehensive branded network of services to more
than 120 million users each month worldwide. As the first online
navigational guide to the World Wide Web, www.yahoo.com is a major guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The Company also provides online business services designed to enhance its clients' Web services, including audio and video streaming, store hosting and management, and Web site tools and services. Under the Yahoo! brand, the Company provides broadcast media, communications, and commerce services.
I love YHOO! Love the company, love the service. But the chart is telling me it's time to go short. Remember just 10 trading days ago YHOO touched 100 intraday and then came rocketing back on great earnings and that sparked the Nasdaq rally to 4289. Well, that created quite a huge gap in the YHOO chart also known as an island. The gap is from 106.56 to 116.87, more than 10 POINTS! Gaps that large in stocks usually don't go unfilled for more than 30 days. With the Nasdaq backing off from it's recent rally, it is very possible that YHOO tries to fill that gap by August 15th. When it does fill the gap, I will be there, ready and waiting to go long huge YHOO, but for now I recommend the August 130 puts. Options are relatively inexpensive at this point because of the low overall volatility in the market and because the VIX - the volatility index is at such a LOW level, closing yesterday's session at 21.67. That is a screaming sell indicator. Once the market begins to drop precipitously, options, especially puts, will increase in intrinsic value. This is a great entry point for YHOO puts as the stock has risen on low volume the last few sessions. Also, the Street does not appear to impressed with Ebay's numbers from yesterday's report, which may affect the Net sector. You may want to play YHOO this way:
August 130 puts YMM TF - last ask 5 1/8 buy 10, sell 1/2 when preliminary target is reached, hold other 1/2 for larger drop. This may be a 7 day hold.
STOCKS ON OUR SCREENS TODAY:
1. XICO- It dropped back late in the day. I still hold some of this. The stock did, however, do it on about 66% less volume. I continue to watch it.
2. JDSU- Numbers today, and goes into the S&P on close. It's one that I suspect will watch all day today. Support is now at 125.00 Resistance may be located at is at 132.50.
3. KEYN- Is it at the bottom. I will watch for another bounce.
4.EXFO- Alert Email picked it up off the bottom. It may hold 70.00 today.
5. ADIC- Closed at high of the day. 15.50 if it can hold it could see
17-18 soon for a nice little gainer.
6. MRVC- Another Alert Email off the bottom yesterday. It looks good to maybe bounce back higher today.
7. EFNT- Support is at 77.50-76.00.
8. SPLS- This stock might be at bottom, and worth a value longer term look.
9. CMTN- If it can hold 84.75 its ok otherwise it could drop to 81.00 where its a buy with a 77.00 sell stop.
10. BVSN- Under 40.00 this one looks good
11. WSTL- Broke 30.00 on close. I will watch for any weakness and take gains
12. PALM- Goes into S&P today. It could pull back
13. INSP- Numbers coming. I have 300 shares I will watch close.
14.VIGN- This stock might be one to look at soon at current levels.
15. EBAY- They sold the news. I will look for 55.00 to be resistance now. I may bail my gamble on this one as I held the 58.50 after hours high.
16. YHOO- This one may be a short, at current levels.
17. CRA- Bio Techs, will they bounce back. This stock has great support at 91.50 if it does fall aprt more.
18. GENE- oversold. It could be worth a bounce.
19. NTRO- Great numbers reported last week. It could add on to 62.50 yesterday.
20. AMZN- Will watch it close.
21. ANCR- managed to close at day high. It looks good to hold 42.00 today.
22. LPTH- I continue to watch this one real close.
23. AFCI- 48.50 appears to once again be resistance on this one Support could then be 40.50 again in a wide range.
24. AWRE- They blew out numbers. And they look for a 100% increase in bottom this year!
25. BLUE- yesterday's hot IPO may have support at 52.00 today and see 62.00 plus.
26. OVTI- This recent unique IPO may make a move back to 40.00 soon
Have a great day!
More to come.........
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