The Play Of The Day
August 28, 2000
08:59 AM EST.
Good Morning Stock Fans!
NASDAQ RECAP: August 25, 2000:
Last: 4042.68 (-10.60) (-.026%)
NASDAQ OUTLOOK TODAY: August 28
Stock Fans, there isn't much other than NASDAQ areas of support and resistance to move this NASDAQ index today. It won't be till Friday and we get the PPI again that the index will have much to move it as the next 2 weeks or so truly are "The Dog Days of Summer!" With that said, the best way to play the index today is simply use 3996.00 as a bail out long and a switch in market position to short. On the same basis use 4100.00 as a NASDAQ break out as 4125.80 is the next level of resistance. The index should based on its current state of momentum and RSI find an area now of at least 4125.80 its current resistance before it loses 4000.00 again. If the index loses 3996.00 the highest reading ahead of the FED decision to leave interest rates alone last week it could sell off back down to at least 3810.00 where support exists.
Today, I like the index to hold 4011.00 as it appears that area has good support. I see it going no higher than 4120.00 today as it establishes a range of 4011.00 - 4120.00 over the next few days.
NASDAQ KEY INDICATORS TODAY:
1st. Level Resistance: 4083.12 ( Friday's High)
2nd Level Resistance: 4125.80 (7/22/00 High)
1st Level Support: 4025.59 ( Friday's Low)
2nd Level Support: 3980.00 (200 day MA)
Today's "Play of The Day!" is: Speech Works: (NASDAQ:SPWX) (Recent IPO)
SPWX, has been trading for less than 30 days , but already has established a range of over 100.00 to just under 50.00. In that time it reported earnings that caught the stock off guard to say the least. It looks as if shares of SPWX have renewed interest based on Friday's beginning of a bounce that should send shares of SPWX back to 62.00 or so a share. The stock looks good today as one that before it loses 50.00 to
find 62.00 its next level of resistance.
KEY INDICATORS: SPWX
Buy Area: 55.8750-56.00
Sell Stop: 50.00
1 DAY TARGET: 61.50-62.00
Time Frame: today
Type of Trade: daytrade
BONUS PLAY #1 RF Micro Devices: (NASDAQ:RFMD)
RFMD, is coming is splitting today. The reduced price and the fact that 9- times out of 10 stock such as RFMD "popular" (based on volume) almost always add on in this case about 4.00 points right off the open. The stock most likely is also shorted. It looks as if before RFMD loses 40.00 it runs to 48.00.
KEY INDICATORS: RFMD
Buy Area: 41.3750-42.00
Sell Stop: 39.68750
1-2 DAY TARGET: 46.8750-47.93750
BONUS PLAY #3: eBAY (NASDAQ:EBAY)
I like EBAY to hold 60.00 today and to make a move higher to its next level of resistance 66.00. The stock looks good to traded in a 61.00-66.00 range as it should see 66.00 today based on Friday's renewed interest for the stock. A sell stop at 59.50 would seem to be a great spot for this one as it should hold. EBAY looks good to see 66.00 before it loses 60.00 over the next 2 days.
KEY INDICATORS: EBAY:
Buy Area: 61.6250
Sell Stop: 59.43750
1-2 DAY TARGET: 66.00
OVERSOLD STOCK TO WATCH TODAY:
Storage Networks (NASDAQ:STOR)
The stock was killed about 5 trading days ago as it was hammered off the 130.00's to drop as low as 105.00. It then bounced back to 115.50.00 where it ran into resistance again, and then on Friday lost 105.00 its support and dropped as low as
101.00 or so. The stock has excellent support at 95.00-96.00 area as it should on FEAR today drop under 100.00. I expect investors to bail out of shares of STOR as it loses 100.00 but should hold 95.00 at its worst level today.
*If shares of STOR lose the sell stop set at 94.00 even today the next area to go in for an expected 20% bounce is at 91.6250 as 89.00 should hold in the worst of STOR sell offs. This stock is one to have over the long term as its a solid EMC type stock.
KEY INDICATORS: STOR:
Buy Area: 97.8750-98.00
Sell Stop: 94.00 even
1-2 DAY TARGET: 106.00-111.50 (on a bounce)
PRO TRADER SAGO'S BONUS PLAY'S:
BONUS PLAY #1 Chiron Corporation (NasdaqNM: CHIR)
Chiron Corporation is a biotechnology company that participates in three global healthcare businesses: biopharmaceuticals, vaccines and blood testing. The Company is developing products for preventing and treating cancer, infectious diseases and cardiovascular disease. The Company's products include Proleukin, a recombinant form of interleukin-2, which the Company markets as a treatment for metastatic renal cell carcinoma and metastatic melanoma. The Company manufactures recombinant human platelet-derived growth factor, the active ingredient in Regranex Gel, which is marketed by Ortho-McNeil Pharmaceutical, Inc., a Johnson & Johnson company, as a treatment for diabetic foot ulcers. Chiron also manufactures Betaseron for Berlex Laboratories, Inc. and its parent company, Schering AG, which is marketed by Berlex and Schering AG as a treatment for multiple sclerosis. In addition, the Company sells a line of traditional pediatric and adult vaccines.
Stock Fans, Chiron is another one of the profitable Medical-Biomed plays. They have a PE of 62, a growth rate of 45% and growing sales. They are just about 30% off of their 52 week high. The hourly chart bottomed on Friday and started to turn up. The Daily, Weekly and Monthly charts all look to turn up. I will wait for the morning dust to settle before committing to a position.
Key Indicators: CHIR
Buy Area:$49.25 to $49.75
TARGET:$52.24 to $53.51
Time Frame: 3 to 10 days
Type of Trade: Swing Trade
Daytrade for $.50 - $ .75 point scalps. Avg. daily price range $2.94
BONUS PLAY # 2 Network Appliance, Inc (NasdaqNM: NTAP)
Network Appliance, Inc. and its subsidiaries are engaged in the design, manufacturing, marketing and support of high performance network-attached data storage and access devices, which provide fast, simple, reliable and cost-effective file service for data-intensive network environments. The Company pioneered the concept of the network appliance, an extension of the industry trend toward specialized devices that perform a specific function in the network, similar to the development of the router for network communications. Network Appliance filers and NetCache appliances are based on the Company's patented data access solutions, including Data ONTAP software and standards-compliant hardware.
Stock Fans we have played Network Appliance many times. This is a great company with growing sales and earnings. I want to catch this on a dip, as I expect this to move to new highs after Labor Day. The charts look solid and I will wait for the morning shake to get my entry.
Key Indicators: NTAP
Buy Area:$98.50 to $99.75
TARGET:$104.75 to $107.23
Time Frame: 3 to 10 days
Type of Trade: Swing Trade
Daytrade for $.75 - $1.50 point scalps. Avg. daily price range $5.71
PRO OPTIONS TRADER MATEO'S OPTION PLAY:
FreeMarkets, Inc. (NasdaqNM:FMKT)
FreeMarkets, Inc. is a leading B2B eMarketplace, with online markets for industrial parts, raw materials, commodities and services. Since 1995, FreeMarkets has created online auctions for products in more than 100 supply verticals, including injection molded plastic parts, commercial machinings, metal fabrications, chemicals, printed circuit boards, corrugated packaging and coal. More than 4,000 suppliers from over 50 countries have participated in the FreeMarkets B2B eMarketplace. FreeMarkets is the only B2B eMarketplace that includes online auction technology, technical operations, industrial market making services, access to a global database of suppliers and call center support to buyers and suppliers in over 30 languages. Customers include Visteon Corporation, United Technologies Corporation, The Quaker Oats Company, Owens Corning, Eaton Corporation, Emerson Electric Company, FirstEnergy Corp., SmithKline Beecham, Navistar International and Delphi Automotive Systems Corporation.
With the Nasdaq over 4000, many of the 'secondary' stocks are starting to get serious interest. FMKT exploded on last Friday with 2.55 millions shares trading hands, 3 times the normal volume. Now, here is how I see it. FMKT can just keep going here, or it may pull back and regroup. 58.25 is the breakout point and is now viewed as support. Watch for 67 to serve as resistance overhead. If FMKT can break 67 to the upside on good volume, look for a major breakout to 77. Options are still relatively inexpensive and could be a great vehicle to trade with.
FAQ IN Sept 70 FMKT Call - last ask 3
STOCKS ON OUR SCREENS TODAY:
1. GENE- under 29.00 its a buy.
2. NXTV- It looks like it could find 48.00 again.
3. TFSM- heavily shorted. It should hold 17.00 and could see 20.00.
4. EMLX- After Friday's Hoax,,, It should drop back to 92.00 before it breaks 114.00 again.
5. MACR- 65.00 support. Over 69.00 could run
6. VRTL- 10.00 looks to be support.
7. CTCH- Watch volume on this one
8. SITE- moving in pre market. One to watch for 27.00 today.
9. NEWP- Looks like its running on a split.
10. AMTL- 32.6250 support
11. JDSU- Trading range: 126.6250- 120.00
12. OVTI- 44.00 Is resistance. If it can get some volume, it could run
13. DCLK- 44.00 could be near.
14. CMRC- broke out on Friday could add on more.
15. EXDS- If it can break 67.00 it could run back to 80.00.
16. RSTN- Goldman starts as a buy today.
17. SITE- under 24.00 is a good spot for this one to be a buy
18. NUAN- could bounce hit hard.
19. RNWK- 44.00 is support due to bounce.
20. CMTN- limit buy at 57.6250 for a bounce back to 63.00
Have a great day!
More to come.........
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