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 on in your investment decisions.
Nasdaq May 21 Day Trading Sitemap Intel *New Subscribers $10

NASDAQ COMPOSITE
INDEX closed 1697.63

May 24, 2002 - Nasdaq will retest 1600

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May 24. Go To Page 1 Nasdaq Composite closed at 1697.63 -May 23.
Intel closed 29.39 -0.20 (-0.68%) below moving average resistance at 29.60. RSI, MACD positive, 29%/21% stochastics forecasting a slow downward drift. Play Intel for a trading range topping at 31, with its minor support at 28, major support at 26. Over-valued on a P/E basis.
Microsoft closed 54.82 +1.13 (+2.10%) over moving average support 54.00. RSI negative, MACD positive, rising stochastics up to neutral 64%/31%. In 10 years, will firms be using PC's, will any business need Microsoft products? Yes, as Microsoft is allowed to monopolize the Internet like it did the PC space. Microsoft wants to attempt to corner Internet Services with a new dot.Net initiative. Will spend $2 billion on promoting no-growth X-box games, while radically cutting prices on slow moving software. Like 2 market leaders Sony (PlayStation) and Nintendo (GameCube), Microsoft cut X-box prices from $299 to $199 May 15 and began marketing campaign to link X-box to the Internet. Games anyone? Play them at lunch time (or on company time) in your comfy corporate cubicle. A.Greenspan praises productivity gains by U.S. workers but does it include PC games on corporate lunch hours?
Cisco closed 16.90 +0.34 (+2.05%) above moving average support at 16.50. RSI, MACD positive, stochastics up from over-sold to neutral 70%/32%. When Nasdaq made a short-term bottom on 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 touted Cisco over 20 repeatedly in January.
Oracle closed 9.37 +0.57 (+6.48%) above its moving average support 9.10. RSI, MACD positive, stochastics rising from over-sold to neutral 55%/28%. Oracle, second in software to Microsoft, has peaked in the long-term product development cycle. With IT spending growth dead only growth project at Oracle is a bid to produce the National ID card.
Worldcom closed 1.79 +0.14 (+9.03%) over moving average support 1.60. RSI, MACD negative, stochastics are at the top of over-bought 92%/79%. Will be another bankruptcy? Classic case of mutual funds owning too many shares bought 3 years ago, now dumping it, ruining survival chances, selling everything. Announced tracking stock MCI will be recombining with parent in July. Removed from the S&P 500.
Dell closed 27.48 (+0.08%) over its moving average support at 27.15. RSI, MACD positive, stochastics rising to modestly neutral 41%/33%. 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 7.41 +0.07 (+0.95%) above moving average support 7.20. RSI, MACD positive, stochastics rising smartly to over-bought 79%/55%. Sun makes servers for Internet infrastructure. With Bush's team in and Clinton agenda gone, oil gets bucks, dot.com is shafted.
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