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 14 Trade to Win Sitemap Nasdaq Big-Cap Research

NASDAQ COMPOSITE
INDEX closed 1701.59

Nasdaq headed for 1600 - May 21, 2002

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May 21. Go To Page 1 Nasdaq Composite closed at 1701.59 -May 20.
Intel closed 30.19 -1.01 (-3.23%) above moving average support 29.90. RSI, MACD positive, 40%/79% stochastics falling from over-bought. Play Intel for a trading range topping at 31, with minor support at 28, major support at 26. Over-valued on P/E basis, for risk-loving traders.
Microsoft closed 54.01 -2.02 (-3.61%) below 90-day resistance 54.10. RSI negative, MACD positive, weak stochastics plunged to over-sold 20%/68%. In 10 years, will firms be using PC's, will any business need Microsoft products? Microsoft wants to monopolize Internet Services with its dot.Net initiative. Will spend $2 billion on promoting useless X-box games, while radically cutting prices on slow moving products. Like 2 market leaders Sony (PlayStation) and Nintendo (GameCube), Microsoft cut X-box prices from $299 to $199 last Friday and started marketing campaign to link X-box to Internet. Games anyone? Play them at lunch time (or company time) in your comfy corporate cubicle.
Cisco closed 16.58 -0.67 (-3.88%) over moving average support 16.38. RSI, MACD positive, stochastics falling from extremely over-bought to 37%/76%. When Nasdaq made a short-term bottom May 7, funds piled into Cisco, because Cisco reported $0.10 per share Q1 earnings. Cisco left a chart gap from 13.50 to 15.15 which could be filled in June. CNBC host Jim Cramer pushed Cisco over 20 repeatedly in January. CEO John Chambers claims cannot find qualified Americans to work at Cisco. Wants U.S. immigration to allow more non-U.S. workers into California. Yo, Chambers you ever looked on the U.S. East Coast yet? There are millions of qualified unemployed Americans in PA and NY.
Oracle closed 9.11 -0.45 (-4.71%) above moving average support 9.10. RSI, MACD positive, over-bought stochastics plunging to 37%/68%. Oracle made its 2-year low under 8 after trading over 17 in February. Oracle, second in software to Microsoft, has peaked in the long-term product development cycle. With IT spending growth non-existent, only growth project at Oracle is bid to produce the National ID card.
Worldcom closed 1.49 +0.14 (+10.4%) above mov. ave. support 1.48. RSI, MACD negative, stochastics actually rising to an over-bought 78%/56%. 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, mutual funds selling everything. Removed from S&P 500 Index too.
Dell closed 27.23 -0.72 (-2.58%) above moving average support 26.90. RSI, MACD positive, over-bought stochastics plunging to 40%/78%. Two years ago, CNBC showcased guests recommending Dell at 50. Biggest CNBC bull 2 years ago Lehman's Dan Niles had buy at 53. Niles pushed Compaq at 22 a share a year ago, he is a CNBC expert.
Sun Micro closed 7.12 -0.23 (-3.13%) above moving average support at 7.05. RSI, MACD negative, stochastics falling to neutral 45%/75%.
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