The Play Of The Day
August 31, 2000
08:48 AM EST.
Good Morning Stock Fans!
Last: 4103.81 + 21.64 ( +0.53%)
NASDAQ OUTLOOK TODAY: August 31, 2000:
Stock Fans, the NASDAQ did it broke 4100.00 an area it had been trying to break for the entire week into last week as well. The index now should traded over 4065.82 (yesterday's low) The next level of resistance exists at 4125.99. The fact the index hit 4115.99 yesterday (missed it by exactly 10 points) If the index can clear 4125.99 off the open today and hold it, the NASDAQ could find itself about 100 points off July 17, 2000, high and 200 day high of 4289.00. The NASDAQ on a good PPI it would see could make a push to 4189.00 as soon as tomorrow.
As for today, the NASDAQ if it can hold yesterday's low may take a shot at 4155.00 another level of resistance. One thing is for certain talk of not be able to clear 4100.00 has ended now can the index hold it? My answer to that question is if it can clear 4125.99 before losing 4065.82 it should do just that today and find the 4150.00 area.
NASDAQ KEY INDICATORS TODAY:
LONG OVER 4077.00 ADD OVER 4125.99
Support: 4065.82 ( range = 60.17)
SHORT AREA: under 4050.00 ADD UNDER 4020.00
STOCK TO WATCH IN INDEX: (NASDAQ:ORCL)
Latley ORCL, has been a great indicator for me on the index. It seems to me that with NASDAQ over 4100.00 again. The NASDAQ if ORCL can break 90.00 could make a move over 4125.99. Basically ORCL ranges are:
Over 90.00 Break out as 90.50 if it is cleared ORCL could really go and so should NASDAQ
Under 86.00 ORCL could sell off fast and find it sell at 79.00 if INDEX loses 3993.00
ORCL sideways - 89.00 - 86.00 (So could be NASDAQ)
Today's "Play of The Day!" is: Sapient (NASDAQ:SAPE)
SAPE, has been killed off its 60 day high of 74.00 a share reached in mid July 2000. Just yesterday on over 5 million shares trading, that's 4 times more than normal volume of 1 million shares SAPE was crushed as low as 45.50 yesterday before it managed to gain some support and close at nearly a 90 day low of 46.56.
The stock was as low as 28.75 back on May 24, 2000, when the NASDAQ also hit its year low. SAPE went all the way to 60.00 plus off that bounce and off its current 90 day low of 44.00 SAPE found its current 60 day high of 74.00.
What does all this mean? Well, Stock Fans! It should mean that SAPE bounce back about 33% in the next week or so as it has retraced a little over 50% off mid July 2000 high. SAPE technically is also way oversold as its schocastic, and RSI looks to be turning over as this stock on massive volume yesterday looks to have hit bottom about 1.00 dolor off its current 90 day low of 44.00
KEY INDICATORS: SAPE
Buy Area: 45.75 (off the open)
Sell Stop: 42.68750
7 DAY TARGET: 61.50-62.00
Type of Trade: Swing Trade
BONUS PLAY #1
SJ KEY SHORT PLAY: (NASDAQ:VNTR)
VNTR, did exactly opposite of what SAPE did yesterday as it traded up over 2.00 on 5-1 ( 4 times normal volume) yesterday. The stock has a "gape down" open in its chart at 16.81. The stock would appear to have little chance to see 17.50 before it re tests the 14.00 area.
Looking for a SHORT on this one over next 3 days for a pull back to 14.00.
KEY INDICATORS: VNTR
Sell Short Area: 16.25
Buy Stop: 17.75
1-3 DAY TARGET: 14.25
PRO TRADER SAGO'S BONUS PLAY'S:
BONUS PLAY #1 Nextel Communications Inc (NasdaqNM: NXTL)
Nextel Communications Inc. provides a wide array of digital wireless communications services throughout the United States. The Company offers a differentiated, integrated package of digital wireless communications services under the Nextel brand name, primarily to business users. The Company's digital mobile network utilizes a single transmission technology. This digital technology, developed by Motorola, Inc., is referred to as the integrated Digital Enhanced Network, or iDEN, technology.
Stock Fans going back to the well. We caught Nextel on 8/15 on the dip and it was kind enough to hit our target before pulling back. The daily chart on 8/29 shows one of those neat tails. This is supposed to show the weak hands have been washed and our favorite MM's are accumulating cheap shares. So with the volume pop and bounce Nextel's charts look solid for a swing scalp!
Key Indicators: NXTL
Buy Area:$50.50 to $51.00
TARGET:$53.55 to 55.08
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
Daytrade for $.50 - $ .75 point scalps. Avg. daily price range $3.35
BONUS PLAY # 2 Kana Communications, Inc (NasdaqNM: KANA)
Kana Communications, Inc. develops, markets, and supports customer communication software products and services for e-Businesses. The Company's products and services allow these companies to manage high volumes of inbound and outbound e-mail and website-based communications, while facilitating the delivery of specific and personalized information to each customer. The Company's products are comprised of a software platform and a suite of customer communication applications. Together the platform and the applications create an advanced and scaleable online customer communication system for e-Businesses. The Kana platform consists of the Kana Core Technology, which includes Kana Conduits. The suite of software applications consists of Kana Connect, Kana Notify, Kana Realtime, Kana Assist, Kana Classify and Kana Response. The Kana Core Technology has a number of capabilities, including message delivery, automation, message transport, and performance management,
Stock Fans B2B is back! Well, at least in some form. Kana has formed new alliances and has a nice four month base to bust out of. The closing price closed above its 10 day moving average on strong volume.
Key Indicators: KANA
Buy Area:$38.35 to $38.75
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.50 - $.75 point scalps. Avg. daily price range $3.07
BONUS PLAY # 3 Sprint FON Group (NYSE: FON)
Sprint FON Group is a subsidiary of Sprint Corporation, which is mainly a holding company. In November 1998, Sprint's shareholders approved the formation of the FON Group. The FON Group is intended to reflect the performance of all of Sprint's operations other than those considered part of the PCS group, which encompasses Sprint's domestic wireless Personal Communications operations. These operations include the long distance division, local division, product distribution and directory publishing businesses, activities to develop and deploy Sprint ION (Integrated On-Demand Network) and other strategic ventures.
Stock Fans what caught my eye on this was the block buys at the close. Some institution was loading up on the 100k blocks at the end of the day trying to disguise its actions. Look at the daily chart. FON has made a new 52 week low. The charts look to bounce and I want to bounce with it.
Key Indicators: FON
Buy Area:$32.25 to $32.75
TARGET:$34.3875- $ 35.50
Time Frame: 2 to 6 days
Type of Trade: Swing Trade
PRO TRADER DAVID'S PLAYS
PLAY #1: Network Engines: (NASDAQ:NENG)
Companies that cause online gridlock by driving too much traffic to their Website, could certainly rev up their Network Engines. The Company develops server appliances and related software designs foruse by online content, Web hosting, application service, and Internet service providers. Its WebEnginge Blazer server can act as a stand alone unit or be grouped to handle more data. Network Engines has licensing agreements with IBM, Micron Electronics, and VA Linux.
Their one year sales change is a staggering 447%.
KEY INDICATORS: NENG
Buy Area: 34.625 - 35.50
Sell Stop: 32.50
1-3 Day Target: 38.75-39.50
3-5 Day Target: 41.00-42.50
This stock only traded 406,000 shares so its rather thin for my liking but the fact is its in the right industry at the right time and its making new highs and is not overextended! Technically this stock has just exceeded its previous highs so it could check back into the breakout zone at 33 but then it should clear.
PLAY #2: Nvidia Corp. (NASDAQ:NVDA)
NVIDIA's 3-D graphics card may have the user questioning what's real. They design the RIVA and VANTA graphics processors, which OEMs such as Dell and Compaq build into their PCs, enabling users to run visually interactive and multimedia applications. NVIDIA combines 2-D and 3-D processing on a single chip, providing a lower cost alternative to multi-chip systems.The fabless company sells to add-in board and motherboard makers, such as Intel, Creative Technology, and Diamond Multimedia. the one year sales change is 148%
Technically I can see a large triangle indecision pattern that has come just about to the apex. Furthermore the price pattern is looking like a coil that will resolve itself to the upside. The caveat here is that its a tad overbought but still within the range
KEY INDICATOR: NVDA
Buy Area: 77.50-78.25
Sell Stop: 74.875
1-3 Day Target:81.50 -82.25
3-5 Day Target: 85.00+ if it can break above 86.50 with any volume this one could see 90s
PRO OPTIONS TRADER MATEO'S OPTION PLAY:
PE Corp.-Celera Genomics (NYSE:CRA)
PE Corporation-Celera Genomics Group (Celera Genomics) generates and commercializes genomic information to accelerate the understanding of biological processes and to assist pharmaceutical, biotechnology, and life science research entities in areas of research including: new drugs and improved drug development processes; novel genes and factors that regulate and control gene expression; and interrelationships between genetic variability, disease, and drug response. Through GenScope, Celera Genomics offers genomics-related products and services including gene discovery, target discovery and validation, efficacy and safety assessment, and pharmacogenomics study services. Through AgGen, the Company specializes in providing services to the agriculture market. AgGen provides genotyping and genomic services for plant and animal breeding programs.
This is a familiar play to many of us. CRA is forming a flag pattern on the daily chart and is just dying to break out and UP. Never short a dull stock or market. Well, with the Nasdaq now poised to break up to 4200, CRA may go along with the other biotechs in the Naz. So, even though CRA trades on the NYSE, the sector that is hot is the biotechs on the Naz. I would look to get CRA on any weakness, 97 - 98 and then wait for the breakout which could come into the close today.
CZA IT - CRA Sept 100 Call - look for entry at 4 - 4.5
STOCKS ON OUR SCREENS TODAY:
1. IFCI- ON CNBC today We will look for 27.50 on a bust out.
2. CMRC- 66.00 would appear to be resistance.
3. EBAY- Oversold! If it can find 62.00 before it loses 58.00 it could make a move to 64.00
4. EXDS- This one looks like it will not see 70.00 before it tests 64.00-63.00 area.
5. CLRS- over 60.00 break out, under 58 short back to 55.00
6. JDSU- I like a move back to 122.8750 today. maybe 125.00
7. INSP- 42.00 could happen on big volume.
8. GNET- Should folow.
9. WJCI- Looking for a fast move to 50-51.00 and a sell there.
10. ONVI- Forgottan high flyer in B2B space as a April IPO went to 70 plsu yesterday it found 7.00!
11. FMKT- It could bust 86.00 and hold it. Now it appears it may test 75.00 area.
12. BIOM- Watch close may move.
13. APNT- if it can't break 52.00 today It looks like a range short back to 55.00
14. AFCI- It has 50.00 but looked very tired as it got it. 52.00 looks to be after this one tests 46.00 support.
15. MACR- May be stuck in trading range.
16. CMTN- it coukld see 66.00 in its current range break
17. TIBX- 200 day MA 100.00 it looks like it can't break it and hold it sideways.
18. AOL- It could break out and trade at a 7 month high if it can bust 62.00!
19. HLIT- came on yesterday. It could see 35.00
20. BVSN - massive volume! It could find 39.00 today!
21. LPTH- 53.43750 retrace would be perfect. Looks like it may need to do this before 60.00
22. PIII- It could keep going.
Have a great day!
More to come.........
and BigPlayStocks.com TEAM OF PRO TRADERS!
GET IN THE GAME:
The Stock Jock and BigPlayStocks.com, Inc. are financial information publishers. Information on the www.bigplaystocks.com web site should not be construed as a recommendation to buy or sell stocks. Financial information published on the www.bigplaystocks.com is intended to be an adjunct to your investment research, not a substitute thereof. The Stock Jock and BigPlayStocks.com, Inc. strive to publish accurate and complete financial data, but are not liable for the accuracy of the opinions and research posted on the www.BigPlayStocks.com web site.