Option Investor
Market Updates

Another Rough Open

HAVING TROUBLE PRINTING?
Printer friendly version

Stocks have opened significantly lower today, but have rebounded slightly. The Dow is currently off 239 points and the Nasdaq is off 65. Today could be quite volatile. Options expiration is contributing to that as well as software downgrades by Deutsche Bank Alex Brown and JP Morgan. Both companies stated that weak IT spending environment would lead to declines in license and service revenue. The Software Index (GSO) was down over 5%, but is currently off 3.85%.

Microsoft Daily Chart

The initial sell off has pushed Microsoft (MSFT) below $50. Not only is this a nice round number, but Microsoft's March low. Should this stock be unable to climb back above support today, $44.75 is the next feasible support level.

PeopleSoft Daily Chart

It was only a few months ago that PeopleSoft (PSFT) was trading $51. Now the stock is desperately trying to stay above support at $17.50. That's a $32 drop, or 63%. That certainly seems a little oversold, but until the chart changes it could get more oversold. If support holds, PSFT could be interesting.

Adobe Daily Chart

Adobe (ADBE) is also clinging to support at $24.56. ADBE has been able to hold above this level for two days, and is once again giving it its all. The stock is only down 23 cents today. Should support continue to hold, Adobe might be an interesting long candidate IF the overall market reverses.

Airline Update - The U.S. government has reportedly passed a $10 billion bailout back for the airline industry.

Jeffrey Canavan
Assistant Analyst
www.PremierInvestor.com

Intraday Update Archives