Professional Trader's Newsletter for July 7th, 1999

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Our new upside targets for the major market indices are as follows: 

The S&P 100 'OEX' new upside target of 732.57 
The S&P 500 'SPX' new upside target of 1,453.71 
The NASDAQ 100 Index 'NDX" new upside target level of 2,522.28 
The NASDAQ Composite 'COMPQ' new upside target of 2,923.20 
The Dow Jones Industrial Average 'INDU' new upside target level of 11,747.45

The last time I made a longer term prediction on the Dow Jones Industrial Average was shortly after the Dow Jones Industrial Average 'INDU' set a new closing high in late November of last year.  My notebook indicates that on November 28th of last year,  with the Dow Jones Industrial Average 'INDU' having closed the day before at 9,333.08 I predicted a move to 11,136.87  Yesterday the Dow Jones Industrial the Dow Jones Industrial Average closed at 11,135.12  This is 1.65 "Dow Points" from my prediction!  I would love to predict the Dow moving to 15,000 or 20,000 (and I believe it is only a matter of time before the Dow Jones Industrial Average reaches those levels) but unfortunately the charts are only providing me with a measurement to the level of 11,747.45  And I do not move markets by force of shear personality,  I only repeat what the charts are telling me.  The Bottom Line:  The overall market should move higher.

Index Options:   none

BUY:  NextCard, Inc. 'NXCD' @ $40.0625/share.  (Stops @ $36.625,  Price Targets $44.25 & $58.50)  YH: $50.00  YL: $22.00  Options Recommendation:  None Available. NextCard, Inc. 'NXCD' is an Internet-based provider of consumer credit, offering an online credit approval system for a Visa card.  The company recently came public through an Initial Public Offering (IPO) priced at $20.00/share in mid May of this year.  Donaldson Lufkin Jenrette 'DLJ' was the lead underwriter on the offering.  The company raised approximately $120 million in its IPO.  The shares of 'NXCD' gapped higher on the open of trading yesterday.  They finished the day sharply higher and closed above a key upside resistance level.  The shares should continue to move higher and test $44.25/share,  their closing high since coming public.  If they can close above that level then they will have completed a "cup pattern" with a measured move to $58.50/share.  First Union Capital Markets recently initiated research coverage on 'NXCD' with a "BUY' rating.

BUY:  J.B. Oxford Holdings, Inc. 'JBOH' @ $14.875/share.  (Stops @ $14.125,  Price Targets $19.69 & $30.375)  YH: $25.75  YL: $0.375  Options Recommendation:  None Available.  JB Oxford Holdings, Inc. 'JBOH' operates a discount brokerage firm offering investors online trading services.  The shares of 'JBOH' closed above a key upside resistance level yesterday.  They should continue to move higher and test $19.69/share,  their yearly closing high.  If they close above that level then they will have completed a "cup pattern" with a measured move to $30.375/share.  The proposed move to allow extended trading hours is expected to primarily benefit the internet brokerages.

BUY:  MapQuest.com, Inc. 'MQST' @ $19.75/share. (Stops @ $17.625,  Price Targets $25.94 & $38.125)  YH: $28.00  YL: $13.00  Options Recommendations:  None Available. MQST is an online provider of mapping and destination information through its web site, mapquest.com.  This company came public in an Initial Public Offering (IPO) priced at $15.00/share.  Robertson Stephens was the lead underwriter.  The shares of 'MQST' closed above a key upside resistance level on Friday,  and they gapped higher on the open on trading yesterday.  They finished the day sharply higher on heavier than normal trading volume.  They should continue to move higher and test $25.94/share,  their yearly closing high. If they close above that level then they will have completed a "cup pattern" with a measured move to $38.125/share. 

BUY:  Ditech Communications 'DITC' @ $24.69/share.  (Stops @ $21.125,  Price Target $30+)  YH: $26.625  YL: $11.00  Options Recommendation:  None Available. Ditech Communications 'DITC' designs, develops and markets echo cancellation equipment and equipment that enables and facilitates communications over fiber optic networks.  This company came public in an Initial Public Offering (IPO) priced at $11.00/share on June 9th of this year.  Alex Brown & Sons was the lead underwriter.  The shares of 'DITC' set a new closing high yesterday on significantly heavier than normal trading volume.  Due to the fact that the company is a recent IPO and there is a lack of overhead resistance on the charts,  and the strength of the upward move the shares of 'DITC' should easily move another $5-10+ higher.  Yesterday,  Robertson Stephens initiated research coverage on 'DITC' with a "Buy Rating"  and Alex Brown & Sons initiated research coverage of 'DITC' with a "Strong Buy" rating.