The Play Of The Day
08-03-99 08:55 EST.
Good Morning Stock Fans!
OK, well you are here and "Paying Customers!" So glad to have you all.
STOCK JOCK plays it right AOL and ATHM and the rest of the market all go lower into the close!
Yesterday the market performed just as I thought it would. We rallied on open then! Guess what Stock Fans! the volume dried up the buyers left and well we went down. AOL stated the side as it around 3:09 PM EST broke under $95.00 a share. That caused (NASDAQ:INTC) to loose $73.00 and that was that. I predicted a small rally at the end of the day after we sold way off yesterday.
Here is MY AUGUST 1999 Prediction
Stock Jocks August prediction is DOWN! We will go down in increments we have LOW volume. Not many buyers and still fairly high prices. I will look for the NASDSAQ especially to trade stocks in ranges of yesterday support becomes today's resistance. Not like a rollor coaster or anything no quick fast BIG sell off on panic. It is instead just like my man Bob Pasini from CNBC says "We Drift Lower, we meander lower on anemic volume" I would compare it more to more like a careful trip down a flight of stairs one step at a time....One step at a time.
What this means is really simple like an overpriced car in the your local new papers classified to get phone calls and people to look and then buy. You have to lower the old price that always get buyers to volume in! We must lower the prices. It is that simple easy really. This will be good for the market. If we are going to higher in October late and through mid December 1999 then we have to remember that old market adage and in life in general. WHAT goes UP must come DOWN!
I look for the NASDAQ to go down to 2425.00 by months end and the DOW to make its way down to 10,223.77 by the end of August 1999.
Well, lets put this thinking all in motion and go back to good old America Online (NYSE:AOL) today. I just can't stay away!
FUTURES tend up 5.50 I have seen this all before. You can create volume if there are no buyers! DOWN WE GO! Today's Play of The Day will not lack volume or drama as it is indeed (NYSE:AOL)
AOL was all over the board yeserday.I went as high as $98.25 just missing Thursday's July 29, 1999, close of $98.75 buy just $0.50. When it missed the overlap I was quite sure AOL was headed lower and it by day end would prove to be very true.
Today AOL's high to me looks to be $96.25 it goes no higher. I will look to get my AOL Options here the AOL August 21, 1999, $90.00 Option Puts. The (SYMBOL:AOO-TR). I will then hold them as AOL still I say with history today as it has treated me well so far. I am not "fooled" by AOL gapping up today on the open I will hold my AOO-TR Option Puts right down to $89.50.
Then Stock Fans as it should grind to a halt as the bid and ask narrow and look to buy on the bottom. I will go right back in and "double dip" AOL off the low and buy AOL AOO-HT August $100.00 Option Calls.
Stock Fans! I go with what I know and look good with my FAV! .. AOL!
More to come.....