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 solely relied upon for investment decisions.
Nasdaq April 30 -Trading Tips -Archives -Top Stocks -Questions

NASDAQ COMPOSITE
INDEX closed 1613.03

Nasdaq RALLY coming - May 6, 2002

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May 6 Go To Page 1. Nasdaq Composite closed at 1613.03 on May 3.
Intel closed at 26.56 below 90-day moving average resistance 28.02. RSI, MACD negative, falling stochastics very oversold at 0%/22%. Broke support completely at 28, which now becomes resistance after bouncing above 28 for several months. Next support level at 25. Intel reported in mid-April the firm earned $0.15 a share, no surprise, but it jumped 11% day of the news. Shows Wall Street was short the stock. Despite signs of a chip rebound, Intel fell 15% in last 12 trading days.
Microsoft closed 49.56 below 90-day moving ave. resistance at 51.98. RSI, MACD negative, stochastics about as low as possible 0%/21%. Microsoft had no earnings surprise in April. Lower expectations and analyst scrutiny effected range of analyst's profit estimates this year. Owner Bill Gates sold some of his holdings at 72. After 10 years, will anyone be using PC's, and will Microsoft dot.Net initiative take hold? World famous consulting firm Accenture Ltd. thinks it will, but then ACN's E-business consulting used to be just another subdivision of criminally charged Arthur Andersen. Microsoft peaked 119 two years ago at time U.S. started anti-trust action to break it up. Not the reason, according to brainless CNBC David Faber on-air comments on May 7.
Cisco closed at 13.14 below 90-day moving average resistance 13.84. RSI, MACD negative, stochastics now completely over-sold 5%/4%. CNBC guest J. Cramer pushed it at 20 on-air repeatedly in January. Lucky if it does not break 13, as Wall Street expecting $0.09 a share to be reported May 7. Cisco CEO John Chambers claims he cannot find qualified Americans to work at Cisco. Wants U.S. immigration quotas to allow more aliens into California. Yo, Chambers you looked at the U.S. East Coast yet? There are millions of qualified Americans there.
Oracle closed 8.43 below 90-day moving average resistance at 9.50. RSI, MACD negative, stochastics rising but are over-sold 20%/22%. Oracle has made a 2-year low after trading over 17 in February. Oracle management has reputation for over-optimistic guidance. That began just over a year ago when Oracle was trading over 21. Future is bleak.
Worldcom closed 1.79 below 90-day moving average resistance 2.50. RSI, MACD negative, stochastics completely dormant at 9%/8%. Will this be another bankrupt disaster? Mutual funds abandoning what is left. Fidelity funds dumping it like Global Crossing, Metromedia FN.
Dell closed at 24.32 below 90-day moving average resistance at 25.70. RSI, MACD negative, stochastics now falling at over-sold 10%/28%. Biggest CNBC bull 2 years ago Lehman's Dan Niles, with strong buy at 53. Why did analysts tell an unwitting public to buy Dell Computer at 50? Ask CNBC, who paraded these incompetent analysts nonstop.
Sun Micro closed 6.77 below 90-day moving average resistance 7.40. RSI, MACD negative, stochastics rising from over-sold at 22%/16%. Clinton force gone, oil drilling gets bucks, Internet gets disconnected.
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