The Play Of The Day

August 25 2000
08:59 AM EST.

Good Morning Stock Fans!

NASDAQ OUTLOOK TODAY:

Stock Fans, 4050 was hit into the close yesterday, and now it would seem momentum traders have placed sell stop at the 200 day MA witch is now set at 3962.55. The range one of about 100.00 may set up a solid trading range as the index's current 5 day low is 3902.00 and its high 4055.00 coming yesterday. The index could after holding 4000.00 and more importantly 4011.00 yesterday now make an upward move to 4077.00 or so. 4100.00 would be a key number to set up a revisit to 4150. The July 2000 high and current 60 day high is 4289.00. This trader believes that the NASDAQ needs more positive earnings news to send it higher. With earnings over currently and not on horizon till mid September it would seem sideline money would be eager to come in as long as the index holds 3962.55.

The best way to trade the NASDAQ currently is perhaps to play it off the 200 day MA as the index increases the 200 day MA also will increase as long as that level is held the NASDAQ could make a run as investors as well as sideline money pile in as the NASDAQ is over 4000.00 again.

Low volume has been the substance of the NASDAQ current 10 day move up. Without any retest of 3 day lows along the way the index if it gets a sell off on increased volume could drop fast. I will look for its slow rise to be accompanied by volume if 4100 is going to be broken.



NASDAQ KEY INDICATORS TODAY:
Support: 200 day MA - 3962.55
Resistance: 4079.00 (July break out point that lead to 4289.00 move)
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Today's "Play of The Day!" is: Liberate Technologies (NASDAQ:LBRT)

About LBRT:

Liberate Technologies provides a comprehensive software platform that enables the delivery of Internet-enhanced content and applications to a broad range of information appliances. Using the Liberate software platform, network operators can deliver a new generation of interactive digital content and applications to their subscribers. Manufacturers of information appliances use the Company's software to add Internet capability to their products. In addition, network operators and information appliance manufacturers use the Liberate open platform cooperatively to create a uniform environment for developers to enhance existing content and create new Internet applications and services for delivery on multiple information appliances. Subscribers will be able to access these Internet-enhanced applications and services from anywhere at anytime.

LBRT, is trading at a level that in the past the recent past has been the "calm before the storm!" LBRT yesterday traded big volume in a tight range, and looks very much like it is being accumulated and could break up and over 20.00 and make a run back to 24.00. I like it today as it is a stock that momentum traders are know to chase and it is also one that has been crushed off its 52 week high.

KEY INDICATORS: LBRT
Buy Area: 18.6250
Sell Stop: 17.00 even
1-3 DAY TARGET: 22.00-23.93750
Type of Trade: daytrade/swing trade


BONUS PLAY #1 Advanced Fibre Communications (NASDAQ:AFCI) SHORT

AFCI, has had several failed rallies at the 44.00 area. It is interesting to point out that both on increased volume as in relation to its 30 day average volume, and on decreased volume it has failed to break out. Since it has been unable to go higher then 44.00 or so it looks to be extremely tired as current levels. One of its technical indicators that back this up our its schocastics are way overbought and it almost certainly is due to pull back over the next 1-3 days as it should retest 39.00-38.8750 area.

KEY INDICATORS: AFCI (SHORT)
Sell Short Area: 46.1250
Buy Stop: 48.50
1- 3 DAY TARGET: 39.43750-38.8750
Type of Trade: daytrade/swing trade

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PRO TRADER SAGO'S BONUS PLAY'S:

BONUS PLAY #1 Metricom, Inc (NasdaqNM: MCOM)

Metricom, Inc. is a provider of mobile wireless data access to corporate networks and the Internet. Metricom began offering its commercial service, marketed under the Ricochet brand name, in September 1995. Ricochet service is now available in the San Francisco Bay Area, in the Seattle and Washington D.C. metropolitan areas; parts of Los Angeles and New York; and in certain airports and corporate and university campuses. During 1999, Metricom has focused its efforts on designing and developing its new high-speed service, which is being marketed under the Ricochet brand name, and is being planned for launch during the late summer of 2000. Metricom has designed its new service to meet the needs of the growing number of professionals who require full access to their corporate networks and the Internet while away from the office. Metricom's service also will appeal to consumers who desire high-speed mobile access to the Internet.



Stock Fans Metricom's chart is looking real good to me. The hourly has turned up, but trades in a range. But besides the chart, I like what they do. They have a wireless modem that can be a attached to the back of a laptop that gives you speeds of 128 kilobits per second. That means we can log onto BPS and get our alerts, research and trade while fishing, boating or any activity! WorldCom and Paul Allen own 87% combined in this company. Once again this is a chart play!


Key Indicators: MCOM

Buy Area:$36.25 to $36.75
Stop:$34.91
TARGET:$38.75-39.75
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.50 - $ .75 point scalps. Avg. daily price range $2.48


BONUS PLAY # 2 InfoSpace, Inc (NasdaqNM: INSP)

InfoSpace, Inc. is a global Internet information infrastructure services company. InfoSpace provides enabling technologies to Web sites, merchants, and wireless devices. The Company's affiliates utilize and distribute these services via PCs and a network of wireless and other non-PC devices including PCs, cellular phones, pagers, screen telephones, television set-top boxes, online kiosks, and personal digital assistants. The Company has developed a scalable, flexible technology platform that enables it to deliver a broad, integrated suite of services to Web sites, merchants and wireless carriers. All of the Company's consumer, merchant and wireless services utilize the same core technology platform within the same operational infrastructure.


Stock Fans the dust is starting to settle on this stock with the recent news of the buyout of Go2Net. GNET is a profitable growing company. InfoSpace is at support. The hourly and daily charts look like this is ready to move up.

Key Indicators: INSP
Buy Area:$28.50 to $29.00
Stop:$27.50
TARGET:$30.45-31.4063
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.25 - $.75 point scalps. Avg. daily price range $2.14

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PRO OPTIONS TRADER MATEO'S OPTION PLAY:

Sycamore Networks, Inc. (NasdaqNM:SCMR)

Sycamore Networks, Inc. develops and markets intelligent optical networking products that transport voice and data traffic over wavelengths of light. The Company combines significant experience in data networking with expertise in optics to develop intelligent optical networking solutions for network service providers. Sycamore's products are based on a common software foundation, enabling concentration on the delivery of services and end-to-end optical networking. Sycamore's products and product plans include optical transport, access and switching systems and end-to-end optical network management solutions.

SCMR came with earnings yesterday after the bell and they looked great. They beat the Street by .02. Now we just need to see how the Market reacts. In after hours trading SCMR sold off very quickly to 148 before rebounding to 155. I think that is excatly where they dip it to today and then it can run next week to test 170 possibly, as I believe the Nasdaq will test 4200 by Thursday August 31. So, I am looking for an entry into SCMR at 148-150 with an 8% stop.

SCMR Sept 165 Calls QSM IM - last ask 7 5/8 - If SCMR sees 170 by next week, these will be a double.



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STOCKS ON OUR SCREENS TODAY:

1. GERN- 36.00 could be the top if it can hold 31.00
2. DURA - all time high yesterday as late in the day on over 2 x average volume it broke 26.00
3. EMLX- 116.00 is now resistance. It looks to have 106.00 as support now.
4. HEII- Big news, and volume yesterday. It looks like it holds 20.00 today and may re test 25.00.
5. CYTO- Looking like 9-10 could be soon.
6. VRTL- Holding well at current levels
7. MACR- 65.00 support
8. ZIGO- Closed at day high on huge volume of over 10 to 1. It could see 80 easy and hold 66.00
9. KEI- Lower volume uptrend move looks solid to make it back to 73-76.00 or so.
10. TRMB- came on late in the day and broke 40.00 its prevoius resistance. it could see 55.00-60.00
11. PWER- It broke out yesterday on more volume.
12. MUSE- Called a core holding on a seroius run may split soon.
13. VSEA- Nice move could follow through
14. OVTI- Blew away numbers. It has a low float and is ONE TO WATCH for a BREAK OUT! Instutions have been gathering for last 10 days
15. JDSU- Govnerment wents more info on SDLI merger. If that merger is in any jepordey it could goto 136-141 fast.
16. MRVC- 66.00 support 67.00 resistance
17. WIND- added to S and P small cap 500. Had big volume yesterday may follow thruogh

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Have a great day!

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

Stock Jock!
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