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 April 4 -Trading Tips -Sitemap -Stock Picks -EMAIL ME

NASDAQ COMPOSITE
INDEX closed 1785.87

Nasdaq is headed down until April 15, 2002

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April 9 Go To Page 1. Intel closed at 29.93 below its 90-day moving average resistance at 30.25. RSI, MACD negative, stochastics popped to 60%/50%. Support remains 28.40. Intel opened sharply lower, fell to exactly 28.40, then rallied 1.53. If it breaks 28.40, next support is at 28.
Microsoft closed at 57.22 below 90-day moving ave. resistance 57.40. RSI, MACD negative, stochastics turned higher to neutral 60%/30%. Bill Gates sold holdings at higher price levels from 70 to 72 past year. At the same time, mutual fund managers have been investing your money in Microsoft at 70. Let's see, who knows more on Microsoft, Bill Gates or 25-year old MBA's running billion dollar mutual funds?
Cisco closed at 16.18 below 90-day moving average resistance 16.45. RSI, MACD negative, neutral-bearish stochastics still weak 32%/26%. Cisco CEO John Chambers lacks credibility, despite Cisco holding $16 billion. This only proves Chambers cannot find new projects with investment returns higher than short-term money market yields from holding $16 billion cash. How hard could it be to find high technology investment projects yielding returns greater than 4%?
Oracle closed at 12.34 below 90-day moving average resistance 12.40. RSI, MACD negative, stochastics staged nice reversal to 69%/33%. Management in company has a reputation for overly optimistic sales guidance. That began just over one year ago when Oracle was still trading over 21. With IBM reporting weak revenues in latest earnings warning, big-cap IT spending appears on hold for another quarter.
Worldcom closed 6.06 below 90-day moving average resistance 6.50. RSI, MACD negative, stochastics oversold 5%/20%. WCOM appears to have sunk to the bottom like the Titanic. Once it traded at 66 in the last 2 years as CNBC hyped Bernie Evers and his overvalued stock. Stock may now be undervalued. If only mutual fund managers bought laggards. They no longer do. Mutual fund managers are only rated on short-term performance compared to their peers.
Dell closed at 26.88 above 90-day moving average support at 26.55. RSI, MACD neutral, stochastics overbought at 98%/68%. Stock did nothing for a year, but two years ago the loud touts at CNBC had it trading over 50. Most prominent bull on Dell when it traded at 53 was Lehman Brothers Dan Niles. Watch PC stocks Tuesday in reaction to Compaq announcement Monday. In any case, PC rally will fade as Hewlett-Compaq merger will invite lawsuits.
Sun closed at 8.50 below 90-day moving average resistance at 8.80. RSI negative, MACD positive, stochastics weak 25%/25%. Stock has been a gainer every time it traded below 8.40. Has a multi-billion suit against Microsoft. Like Worldcom, Sun traded ten times higher in the past 2 years on CNBC hype. In fact, CNBC is the leader in bad hype.
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