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 May 6 -Trade to Win -Archives -Top Stocks -Bull or Bear

NASDAQ COMPOSITE
INDEX closed 1652.54

Nasdaq limited to 1766 - May 14, 2002

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May 14 Go To Page 1. Nasdaq Composite closed at 1652.54 May 13.
Intel closed 28.52 +1.51 (+5.59%) over moving average support 27.80. RSI, MACD positive, stochastics over-bought 82%/72%. Last week broke support, after bouncing above 28 for several months. Intel had 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 9% in last 18 trading days.
Microsoft closed 52.69 +2.64 (+5.27%) over moving average support at 51.80. RSI negative, MACD positive, stochastics rising to neutral 68%/48%. Microsoft had no earnings surprise in April. Expectations and analyst scrutiny effected range of analyst's profit estimates this year. Owner Bill Gates sold some of his holdings at 72. In 10 years, will any firm be using PC's, will anyone need Microsoft PC products? Microsoft to monopolize Internet Services with dot.Net initiative. If Hotmail slowness and X-box sales are any indication, bet on another technology. Microsoft peaked at 119 two years ago at a time the U.S. started anti-trust action to break it up. Not the reason for stock's fall according to brainless David Faber (CNBC) on-air comments May 7.
Cisco closed at 15.70 +0.28 (+1.82%) above moving average support at 15. RSI, MACD positive, stochastics remain extremely over-bought 85%/84%. CNBC host J. Cramer pushed it at 20 on-air repeatedly in January. When Nasdaq gapped from short-term bottom May 8, funds piled into Cisco. All because Cisco reported it earned paltry $0.10-Q1. Cisco CEO John Chambers claims cannot find qualified Americans to work at Cisco. Wants U.S. immigration quotas to allow more non-U.S. into California. Yo, Chambers you looked on the U.S. East Coast yet? There are millions of qualified unemployed Americans in PA and NY.
Oracle closed 8.47 +0.46 (+5.74%) below moving ave. resistance 8.60. RSI, MACD negative, stochastics rising from over-sold to 52%/48%. Oracle has made a 2-year low after trading over 17 in February. Oracle management has reputation for overly-optimistic guidance. Oracle like Microsoft at long-term product development cycle peak. No growth.
Worldcom closed 1.44 -0.14 (-8.86%) below moving ave. resistance 2.00. RSI, MACD negative, stochastics (and stock) completely dead at 4%/16%. Will this be another bankruptcy? Classic case of mutual funds owning too many shares bought 3 years ago, now dumping it, ruining survival chances. Like Global Crossing and Metromedia FN.
Dell closed at 25.36 +1.48 (+6.20%) above moving average support at 24.80. RSI, MACD negative, stochastics rising to very over-bought at 80%/68%. Two years ago, CNBC paraded guests daily recommending Dell over 50. Biggest CNBC bull 2 years ago, Lehman's Dan Niles, he issued buy at 53. Niles also pushed Compaq at 22 a share a year ago.
Sun Micro closed 6.71 +0.45 (+7.19%) above moving average support 6.70. RSI, MACD negative, stochastics rising to a neutral 54%/48%.
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