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.
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NASDAQ COMPOSITE
INDEX closed 1527.80

Sept. 20, 2001

******************Commentary*******************
Sept. 19 Go To Page 1 Nasdaq closed 1527.80 -27.28 on Wednesday. Please give to the Afghan Relief Effort. Two million refugees are now in neighboring Pakistan. They don't have any food, clothes, hope, or money, and certainly can't spend $350.00 in the New York NBA store like Bill Clinton did this week. Muslims believe in prophetic message of Mohammed. They do not believe their religion is better than other religions. The 250 attacks on Arab-American students on American campus is atrocious. About 90% of Turkey and Pakistan are Muslim and they will be offered millions of U.S. taxpayer dollars to join Bush. Doesn't help 31 million in U.S. living in poverty. This never changes. The campaign against terror to be TV-announced Thursday night by the Bush coalition will not be over in 1 month, 3 months, even a year. American public will never know what the future holds, but the stock market is forecasting a long, drawn-out recession, a new Bear Market for the Dow Jones has only just started. Today, I want to suggest to buy puts but Dick Grasso (CEO-NYSE) appeared on TV talk shows, said it is politically incorrect and unpatriotic to sell America short, and the SEC is investigating everyone who bought PUT OPTIONS. Funny, Wall Street HEDGE FUNDS and SHORT-SELLERS managing wealthiest accounts at large Wall Street brokerages have been selling the Nasdaq short and no one has accused them of being unpatriotic. U.S. Congress is populated by money interests and former Wall Street executives who want to maintain a divide between wealthy and poor. General Electric's network CNBC portrayed the NYSE opening on Wednesday morning, showing Dick Grasso, who was patted on the back by the Senator for New Jersey for getting the exchange up and running on Monday. Not surprisingly Sen. Jon Corzine (D-NJ) is the former CEO of Goldman Sachs. It uniquely qualifies him to represent ordinary blue collar workers and lower middle income Americans with 90% investment losses. Technical Analysis. On 90-day chart, Nasdaq 6.5% under moving average resistance. Nasdaq rarely gets more than 4.4% from 90-day MA. RSI, MACD are deeply negative, stochastics at 22%/10% rising from 0%/5% Monday (low for year). Any news of capture of war targets could get Nasdaq rising to fill a gap at 1645. Long-term Nasdaq 2-yr resistance is 15% above Wednesday's close, a rare excessive rate of decline. A RULE of thumb, traders will SELL the "first rally" off a low, watch the shorts selling heavily Thursday. While hedge funds, insurance companies, mutual funds, and short-sellers are trashing Nasdaq, CEO's and spokepersons are parading in the press urging public to buy. RSI, MACD negative, these statistics did not make lows for the year this week. L/T stochastics also did not make new lows, but at 19%/8%, very close to levels seen in March.
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