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 Mar.25 -Trading Tips -Sitemap -Stock Picks -WRITE ME

NASDAQ COMPOSITE
INDEX closed 1826.75

Nasdaq will rally briefly on Mar. 28, 2002

******************Commentary*******************
Mar. 28 Go To Page 1. Technical Analysis on largest Nasdaq stocks
Intel, Microsoft, Cisco, Oracle, Worldcom, Dell

Intel closed at 30.41 below 90-day moving average (MA) resistance 30.80. RSI, MACD negative, stochastics neutral at 24%/24%. Intel in trading range. Intel is over-valued on a P/E basis, but is bullish based on increasing cash flow.
Microsoft closed at 59.44 below 90-day moving average resistance 60.25. RSI, MACD negative, stochastics rising to neutral 30%/20%. Microsoft has not moved in line with the Dow for the past 8 weeks despite inclusion in Dow. Bill Gates sold holdings at higher price levels from 70 to 72 over the last year. Gates knows more about his business prospects than mutual fund managers.
Cisco closed at 16.34 below 90-day moving average resistance at 16.45. RSI negative, MACD positive, neutral-bearish stochastics fell to 26%/28%. Cisco CEO John Chambers is lacking credibility but CSCO has $16 billion cash. This shows John Chambers cannot find projects with investment returns higher than the short-term money market yields on holding $16 billion cash. How hard could it be to find worthwhile projects yielding higher than 4%? Chambers also testified before Congress that he could not find skilled American workers to work at Cisco, and for that reason the immigration laws should be relaxed. Alan Greenspan agreed with this conclusion. All that while millions of skilled older Americans on the East Coast have been out
of work from foreign students with expired visas who barely speak English being sponsored by American technology companies for open skilled labor positions on the West Coast. Write Congress!
Oracle closed at 12.63 below 90-day moving average resistance at 12.80. RSI, MACD negative, stochastics leveling off very oversold 20%/21%. Management in this company has a reputation for overly optimistic guidance. Not that Oracle management is any different
from any other tech company.
Worldcom closed at 6.19 below 90-day moving average resistance 6.60. RSI, MACD negative, stochastics oversold at 19%/8%. WCOM appears to have landed with a thud, but unlike its bankrupt Internet customers, has profits. Stock may be undervalued. If only mutual fund managers looked for laggards. Ask your neighborhood 25-year old MBA.
Dell closed at 25.95 below its 90-day moving average resistance 26.40. RSI, MACD negative, stochastics neutral at 30%/28%. Stock did nothing over one year or two years, but is a huge winner compared to the moronic management at Hewlett, Compaq.
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