The Play Of The Day
07-06-99 09:0 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Net Gravity INC (NASDAQ:NETG) - OFF THE LOW TODAY... read on!
Stock Fans! Net Gravity, Inc (NASDAQ:NETG) had rumors of a Double Click (NASDAQ:DCLK) takeover surrounding it last Friday, July 2nd, 1999 and with that huge volume followed.
In fact Stock Fans! (NASDAQ:NETG) would trade more then 3 times its 30 day average volume as it closed Friday with over 3 million shares. It established a huge trading range of over $6.50 for its HIGH of $27.6250 to its LOW of $21.1250. With the same type of volume expected today look for (NASDAQ:NETG) to have just as big of a trading range. Except this time a bit more to the downside.
I want to point out here. At one point in the day mostly on a falsely written Jag Notes post on the Internet it traded up almost $7.00 dollars as it got as high as $27.6250 per share. It could not get through that number however as it saw resistance at less then where it should have.
With nothing coming from the Double Click (NASDAQ:DCLK) camp late in the day last Friday on an unconfirmed take over rumors. (NASDAQ:NETG) would sell of with the rest of the Green NASDAQ Net Sector as investors prepared for the long holiday.
Stock Fans? Let's ask this question as (NASDAQ:NETG) gaps up about .25 as the NASDAQ open approaches. Why is NASDAQ:NETG) seen to be valued at any less then it was last week? In fact Double Click (NASDAQ: DCLK) doesn't look to be buying it anytime soon.
With that in mind doesn't it get hammered today? Funny it is going up a little bit more now. Forget that it was $66.87 less then 3 month ago.
Even as the market looks to open higher and take (NASDAQ:NETG) with it. I look for a big pull back in this one today. If I am wrong then I will miss it and not chase NASDAQ:NETG)
I can see (NASDAQ:NETG) looks to trade up on the open today perhaps opens at $25.43750 or even $26.00. I don't see anymore then $27.1250 per share. After that the BRAKES get applied to (NASDAQ:NETG) and back it should come?
Stock Fans! I am going have my NET out ready to catch this Internet Issue that name "begs!" it to goes higher and defies gravity today.
With (NASDAQ:DCLK) out of the picture (NASDAQ:NETG) should forget real fast today that it is not supposed to be worth $25.00 plus a share.
So, with all that in mind I will look to get my shares of (NASDAQ:NETG) at about 10:22 AM EST as (NASDAQ:NETG) should be around $23.1250 - $22.1250 a share
AUG 1999 CALL Options (off the bottom) HUG HX AUG $22.50 Options Calls.
Buy Area: $22.1250 - $23.1250
Sell Stop: $ 19.50 even
Target : 29.1250 ( by weeks end perhaps)
OK READY BREAK!
I will be in and out of my LIVE TRADING ROOM today. So look for me!
More to come.....
Have a great day!