Steve Zito, MS Fin/BS Econ Wharton School, HTML Writers Guild
uses economic and technical analysis to forecast the direction of the stock market. The views in this newsletter are opinions only, and should not be relied upon as advice on investment decisions.
Nasdaq July 10 -How To Trade -Sitemap -Stock Picks -PAGE ONE

NASDAQ COMPOSITE
INDEX closed 2067.32

Will Nasdaq Try Again to Test 1950?
Tue., July 17, 2001

******************Commentary*******************
July 17. PAGE TWO
INTEL has very neutral RSI, MACD, but stochastics are over-bought at $30. Surprisingly today Intel filled a chart gap from July 12 between $28 and $29.30, reducing pressure on the downside. I have said many times in the past 4 months that Intel is range bound between $26 and $32. Microsoft stochastics are VERY over-bought and Mr. Softee has that huge chart gap to fill between $66.50 and $70. Microsoft suffers if Personal Computer stocks report weak guidance for the third quarter (back to school time). Take all your billions and hire people-Bill Gates. Cisco mimicked Intel, today filled the chart gap between $17 and $18. RSI and MACD are neutral as are stochastics, which have eased from an over-bought condition. Cisco will make NEW lows soon this year. Oracle has neutral RSI, MACD, but Oracle is VERY over-bought and shows a definite upper range at $20. Don't believe management hype. Worldcom, unlike the other big-cap Nasdaq leaders, has NO GAP to FILL. RSI is negative, but starting to rise toward 50%, MACD has already turned positive, but stochastics approaching over-bought. Worldcom can be held with less RISK than weaker Telecom stocks. DELL, as usual, popped in the over-sold rally of the past few days, but that just means it will fall harder. Hitting $29 was not a breakout as the parade of Cable TV market experts have proclaimed. DELL is the leader of a MATURE industry, and without new markets to find and conquer is at best, a market performer. While RSI and MACD are positive, stochastics are the MOST over-bought of the big-cap tech. Sun Microsystems has headed down, down, down thanks to endless Goldman Sachs downgrades. RSI is negative, MACD is positive, and stochastics are plunging yet not over-sold. SUNW support at $13.50.
All stocks bought July 11 for current Nasdaq rally to be sold July 18.
Diversify to JAPAN ADR's or look North for CANADIAN STOCKS.

BACK TO PAGE ONE
Copyright Notice, all pages Copyright©2001 and are made available as a service to the global Internet community. Pages may not be reproduced or sold in any medium without explicit, written permission from Steve Zito.