Day Traders On-Line Warns Subscribers to Go to Cash Before Market Sell Off; Members Hit Big During Rebound On Stocks, Including Dell Computer, American Online and EMC Corp.

MONTEREY, Calif.--(BUSINESS WIRE)--Sept. 2, 1998--Subscribers to Day Traders On-line (http://www.daytraders.com), one of the largest trading sites on the web, hit big Tuesday on a number of rebounding stocks, including Dell Computer (NASDAQ:DELL), America Online Inc. (NYSE:AOL), as well as Lucent Technologies Inc. (NYSE:LU) and EMC Corporation (NYSE:EMC).

Day Traders On-line subscribers watched the market sell off largely in cash last week if they had been adhering to the advice of the service's newsletter and real time Trading Desk services; both of which had been calling for a market decline and urging caution with the markets as far back as July 31st, exactly 2 weeks after Dow hit new high.

In fact, as recently as August 26th, the service recommended members use extreme caution in their morning report. Following are actual excerpts:

"The market showed some strength intraday, but pulled back by the close on what was most likely profit taking and continued concerns of oversea markets and the state of our market in general. Volume was fairly heavy, however the fact that declining issues out numbered advancing issues did not reassure us. As pointed out yesterday, all rallies at this time are suspect in our eyes and therefore we would suggest members use them to take profits only. We recommend that you continue to take profits and maintain higher levels of cash this week. At this point, overall, we would say, while the market has been able to hang onto current levels around the 8500 mark, we have not exactly been impressed with its ability to reclaim ground towards the 9000 levels. Caution going forward is strongly recommended as every day we hover around the 8400 to 8600 levels is yet another day we have not clearly rebounded. We feel, to some degree, this increases the risk of a break down in the markets."

"...As we indicated before, if things break down and we find ourselves trading under the 200 day moving average for any length of time at all, then it becomes more likely that we'll slip back down into the 8000 or lower range until a firm footing can be rebuilt to attempt another rally."

And finally, the report issued one last warning to members; just two days before the market sold off over 500 points in a single day:

"...we are advising members raise cash and use extreme caution when playing this market for the next couple of weeks."

NOTE: A full copy of the original August 26th edition is available on-line free of charge. Please visit the following URL for the full text: http://www.daytraders.com/report082698.html

Yet, even though Day Traders On-line was recently cautious about the markets, don't get the misimpression that they are one of these eternally bearish type services. In fact, just the opposite is true. The service has been extremely bullish on stocks since taking their newsletter and alert service onto the Internet over two years ago.

As recently as Tuesday, Day Traders On-line alerted their members to go long the market to take advantage of a possible rebound in stocks due to an oversold condition. Members of the service's real time Trading Desk were alerted of a possible market bottom with the Dow trading at 7400 and to consider the purchase of such stocks as American Online (NYSE:AOL), Dell Computer (NASDAQ:DELL) and Ciena Corp (NASDAQ:CIEN). Based on these calls, members had the opportunity to take home profits of as much as 14.80% in a single day on Dell computer (which ran from $94 a share to over $108) and even higher profits on the stock of America On-line which was called a buy from the $70 dollar level and rocketed to $85 by the close, a potential gain for members of as much as 20% intraday! -0-

     Other stocks played by the service this week, both in the Trading
Desk and the morning newsletter which is e-mailed to members, include:

Compaq Computer Corp (NYSE:CPQ)
Intel (NASDAQ:INTC)
Microsoft (NASDAQ:MSFT)
Worldcom Inc. (NASDAQ:WCOM)
Cisco Systems (NASDAQ:CSCO)
Schering-Plough (NYSE:SGP)
Lucent Technologies (NYSE:LU)
Boeing (NYSE:BA)
Wall Mart (NYSE:WMT)
General Electric (NYSE:GE)
Schering-Plough Corp. (NYSE:SGP)
Motorola (NYSE:MOT)
Resource America, Inc. (NASDAQ:REXI)
Dell Computer (NASDAQ:DELL)

For further information about Day Traders On-line or to take advantage of their no risk, two week free trial offer of both their short term investment newsletter and real time Internet based trading site, please visit them on the Internet at their web site located at: http://www.daytraders.com or send e-mail to: [e-mail]. -0-

    CONTACT: Day Traders On-line
              Ray Johns, 408/649-4545
              [e-mail]
              http://www.daytraders.com
                       or
              For all questions & customer service
              needs, e-mail to: [e-mail]