Shares of KREM are currently trading near the $75 level in pre- market trading and that looks to us as if a long-term upward trend has been broken. We've added a level of horizontal support at $72.25 so traders can assess risk from here. We'd like to see a rally near the 50-day MA (thin blue) near $90 or high $80's to initiate short positions. Recently, the stock hit a new high, but MACD achieved a lower high. Volume is light, but this one may want to be added to a list for a gloomy market day.
Cisco makes acquisition
It's business as usual at Cisco Systems (CSCO) as the company agreed to acquire privately-held Radiata for $295 million in stock. CSCO already owns an 11% stake in Radiata and expects to record a charge of 2 cents a share related to the deal.
CMGI outlines guidance
CMGI outlined its financial guidance for fiscal 2001 and said it plans to exit operations for two business units (iCast and 1stUP.com). The company said it plans to reduce it number of majority-owned operating companies to between 5 and 10 by the end of fiscal 2001. Among CMGI's projections was a forecast of EBITDA profitability for four of its five business segments by the end of fiscal 2001.
Remember where you are and where you came from!
We'll remind traders to remember where the major indexes are and where they've come from. In yesterday's 04:30 EST update, we "rated" and "scored" the three major indexes as to how they're shaping up. Trade accordingly and don't let a strong futures market get you carried away.
Yesterday afternoon, bearish swing traders should have been stopped out of their short in shares of RDRT at $6.25. This was a nice profit if shorted at $7.38 and pre-market trades are currently taking place at $6.25. If you haven't closed it out yet, do so here. Resistance looks firm at $7.50 and we'd like to take a look at the stock again if market conditions deteriorate.
OptionInvestor Intraday, Tuesday, 11/14/2000 09:00 EST Update
Futures higher, much higher!
Wait an hour or two and things may be different, but currently futures are higher as the equity markets look like they want to try and build on yesterday's comeback. Currently S&P futures are higher by 9 points, NASDAQ futures are up 62 and Dow futures are higher by 57 points.
Retail Sales up 0.1%
Today's economic data has retail sales growing by 0.1%, which is slightly higher than economists had been looking for. Economist's consensus had many looking for little growth, or 0.0%. Once the retail sales number were released, we saw equity futures build marginally on gains and saw a slight pick up in the selling of the ten and thirty-year treasuries.
Foreign markets higher
Helping to build stronger futures market here in the U.S. was overseas trading. In the Asia/Pacific region Hong Kong's Hang Seng jumped 2.44% but Japan's Nikkei 225 traded off fractionally by 0.03%. Major indexes in India and South Korea were higher by more than 2%. In Europe we're seeing a lot of green across the board. France's CAC 40 is higher by 1.86%, Germany's DAX is up 1.60% and London's FTSE 100 is higher by 1.47%. Finland's Helsinki General is surging 5.74%. In Europe it looks to be the telecom and technology stocks benefiting from today's upward move at the expense of the food and drug sectors. Traders here in the U.S. might look for the same type of activity if a rotation takes place away from "defensive" stocks and into some beaten down sectors.