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 June 23 How To Trade Index Dell Report STOCK PICKS

NASDAQ COMPOSITE
INDEX closed 2034.84

Nasdaq Stock Losses? "Just Relax"
Sun., June 24, 2001

******************Commentary*******************
June 24. INTEL stochastics bullish, rising at 31.35/29.19% (vs very over-sold 9.04/47.23%). It's a BUY at $26 despite what Lehman Bros. senior analyst Dan Niles says. It has been holding its trading range from $26 to $32 for months. MACD is still indicating negative at 0.44 but RSI is improving at 41.34. Intel's best customer Dell sales rising.
MSFT stochastics falling at 41.23/37.53% (vs over-sold 16.93/50.72%). This stock has broken down and both MACD and RSI are falling. In public announcement, Bill Gates states "Aids" is the world's greatest problem. Funny idea for someone who is married. He ought to try and help unemployed people in the U.S. get meaningful jobs here instead. Minds are terrible things to waste, Bill. I applied to Bill & Linda Gates Foundation for a job, and didn't even get the courtesy of a response.
CSCO stochastics neutral with no upside momentum at 31.08/20.05% (vs very over-sold but stabilizing 5.47/29.83%). MACD still negative but firming as RSI remains negative. Volume decreased during Wed. pop. CNBC Jim Cramer hates tech but buying Cisco? Worst advice.
ORCL stochastics falling again at 83.63/51.40% (vs the nicely rising 74.31/51.04%). Investors have forgotten what Larry Ellison did on March 1. Not me. That was the last time I ever buy ORCL over $20. ORCL had a great over-sold bounce last week but left a noticeable gap at $15.40-16.40 which will be filled soon. MACD is positive, RSI negative and ORCL is a "sell" at the top of its $14-20 trading range.
WCOM now has upside potential at the bottom of its $14-20 trading range, stochastics low of the year at 7.61/10.40% (vs very oversold 8.61/23.05%), with MACD and RSI plunging. More on telecoms fall.
DELL stochastics falling at 19.64/30.42% (vs over-sold 16.67/37.14%). MACD, RSI remain negative. BUY at $21 at low end of trading range.
SUNW stochastics over-sold but turning higher at 13.39/11.49% (vs very over-sold 9.09/16.76%). MACD, RSI negative but turning higher. Goldman Sachs analyst Laura Conigliaro blasted SUNW on May 29.
Big-cap Nasdaq tech stock weakness ended with over-sold bounces in Intel, Cisco, Oracle midweek. Still that was not enough to boost Nasdaq higher for more than a few days. This was not surprising in light of the previous week's decline, Nasdaq's worst week of the year (down 8%). Five common mistakes every investor makes. 1.Listening to TV financial news programs for stock advice 2.Chasing momentum plays 3.Not using Stop Loss Sell orders 4.Failure to understand just what "RISK" is 5. Not reading Stock Market Direction every day. Do you like being whipsawed by brokerage house downgrades or your own mutual fund investment groups dumping the same Internet and telecom names you may have bought in April-June's Nasdaq rally?
Diversify to JAPAN ADR's or go North to CANADIAN STOCKS.
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