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  Jeff Bailey   5/28/02,  9:51:37 PM
Toll Brothers (TOL) $30.27 (unch) .... earning's tomorrow morning before the opening bell, most likely will be "market moving."

Risk: Any negative comments on call or from earnings could see stock and housing sector unravel to downside and perhaps broader market. The strong housing sector has perhaps been the pillar of the economy.

Reward: With the stock having exceeded its bullish vertical count of $25.50, it has become tough to ascertain potential upside from a technical perspective. On February 26th, stock gapped to new 52-week high at $23.25 on bettern than expected earnings and sector (DJUSBH) also built on gains.

The S&P 500 (SPX.X) is trading about 35-points below its February 26th close when TOL last reported earnings.

I will note, last week insider at TOL filed a 144 (insider sales filing with SEC) to sell 1 million shares, but amended filing shows insider sold 700,000 shares. I have no qualms with insider selling some stock when that stock as tripled over 2.5 year period, but with some Enron (OTCF:ENRNQ) $0.17 and Adelphia Communications (ADLAE) $2.00 -27.79% issues still on investor's minds, TOL earnings will be watched closely.

Bears have been calling for a housing sector "bubble" and TOL earnings will be closely monitored.

 
 
  Jeff Bailey   5/28/02,  6:54:41 PM
Novellus (NVLS) $46.57 +1.06% ... Dow Jones reporting that company says it sees current quarter earnings of $0.08 per share versus the current consensus estimate of $0.07 a share; sees Q2 revenue of $220 million, Q2 shipments of $225 million, but not commenting on Q3.

After-hours price action has NVLS lower at $45.66 (-1.95% from close), AMAT $24.12 +1.34% at $23.73 (-1.6% from close) and KLAC $55.01 +1.06% trading 53.91 (-1.9% from close).

 
 
  Jeff Bailey   5/28/02,  6:45:59 PM
Williams Cos. (WMB) $17.11 -1.77% .... S&P cuts company's credit rating to BBB from BBB+. Link

 
 
  Jim Brown   5/28/02,  6:44:34 PM
Pivot Trade Wrap (What is this?) Link

Novellus will decide direction. The conference call after the close will decide the direction for the tech sector tomorrow. The news that they were raising the estimate for Q2 orders to $275 million was met with a lukewarm investor reaction. The reason was cautious comments by the CEO that they could not give any guidance for the 3Q and that increased business spending would be required to hit their targets. The chip sector was trading down in after hours with small losses of 50 cents to $1.00 for most stocks.

There are no economic reports due out tomorrow and stocks will be left to trade on their own. The TRIN at 1.72 and the Put/Call ratio at 1.08 is very bullish and would suggest a rebound soon. (That does not take into account any reaction to the NVLS conference.) Nothing prevents these indicators from becoming more oversold but typically the Put/Call ratio is very reliable at predicting a bounce when it is over 1.0. Time will tell.

Support levels for the Dow are 9922 and 9911 with resistance at 10000 and 10100.

Support for the Nasdaq is in the 1650 range with 1632 and 1600 below that. Resistance is 1660 and 1674.

S&P support at 1067 and 1054 with resistance at 1080.

OEX support is 532, 530 and 522 with resistance at 536 and 540.

The open should be interesting tomorrow. See you at 9:15.

 
 
  Jim Brown   5/28/02,  3:58:10 PM
Pivot Trade Exit Point Alert - OEX/SPX/DJX
Another false alarm! Despite the strong rally in the Russell the broader markets continue to fail near the afternoon highs.

Cancel all outstanding signals. With no clear direction we do not want to get triggered right at the close. Let's wait and see what NVLS says after the close and choose tomorrow's direction based on the reaction to their news.

 
 
  Jim Brown   5/28/02,  3:42:22 PM
Pivot Trade Signals
All dressed up and nowhere to go. The markets just keep trading sideways despite all the hopes and curses of all concerned. The bulls cannot push it up due to lack of buyers and the bears can't tank it due to lack of sellers. One reader said he feels like the bridegroom waiting at the altar with the bride in a heated discussion with her father in the back of the church. He is supposed to be getting married but the bride still has cold feet. The music keeps starting but when the bride does not appear his hopes are dashed again.

The market music keeps starting but "shorts" out every time a gain of more than five minutes appears. Traders want to go long but they are afraid of commitment. ( That marriage analogy again.) We still have two signals open to go long. One on a breakout over 537.50 and another on a dip to 530.50. With the OEX hovering at 534 there is no clear indication of which will get hit as we move towards the close. Got to go, I think I hear that music again !

 
 
  Jim Brown   5/28/02,  2:58:06 PM
Pivot Trade Entry Point Alert - OEX/SPX/DJX
I previously discussed the possibility of a bounce in the 530 area, about 2 points below our low for today. This is based on intraday support from May-13th, the day before the huge gap open rally. This is a purely speculative play. Any dip to that level could be very fast so I am going to issue this signal now.

Go LONG the OEX/SPX/DJX on any dip to 530.50. (SPX 1068 est) The stop loss on this signal will be 528.50. (SPX 1064.50). If the market blows through these levels we want to keep the losses to a minimum.

 
 
  Jim Brown   5/28/02,  2:46:59 PM
No earnings but Novellus guidance is expected to drive the markets tomorrow. NVLS is expected to raise guidance for new orders from $250 million to a range of $250 to $275 million due to aggressive spending by foundries in Taiwan and an increase in copper utilization at other manufacturers. Piper Jaffray is bullish on the NVLS outlook but bears claim this guidance is already priced into the market after the AMAT guidance earlier in the month. The bears feel that any weakness in the NVLS guidance tonight could actually tank the market since everyone is expecting an improvement. If they say anything about "slowing" or "lack of visibility" then we will get another leg down in the SOX. The SOX broke under 500 at the open and has been gaining ground slightly on hopes that their guidance will be positive.

 
 
  Jeff Bailey   5/28/02,  2:26:06 PM
Hi Jeff, If you would, please comment on (gnss) you was advising to new entry when it pull back to 25,24 ??

I don't really have a new entry on GNSS. Mentioned it as actionable on Thursday near current levels via subscriber e-mail. (see 05/23/02 02:42:28) Link

Stock hasn't done anything since that time. Link

 
 
  Jim Brown   5/28/02,  2:13:05 PM
Pivot Trade Exit Point Alert - OEX/SPX/DJX
We were stopped out of the OEX/SPX/DJX short at 14:03 when the OEX traded above 534.75. (SPX 1075 est).

With the Dow flirting with 10000 we are still live on the LONG trigger at 537.50 (SPX 1079 est). This will be a breakout play. As I previously mentioned I am also going to issue a LONG signal if we trend back down to touch the 530 level, which I see as a potential bounce point.

 
 
  Jeff Bailey   5/28/02,  2:09:21 PM
Replay of Thursday's close? Biotechnology Index (BTK.X) +1.51% now and building some gains. Networking Index (NWX.X) +0.43 and seeing some marginal gains in Disk Drive Index (DDX.X) +0.44%. All three have been weaker in recent months, but not getting hammered today.

Semiconductor Index (SOX.X) -0.7% has clawed back from earlier losses.

While some of the players have changed, the game remains the same.

QQQ $30.91 -1% recovering a bit from session low of $30.49.

 
 
  Jeff Bailey   5/28/02,  2:06:18 PM
Hi Jeff, If you would, please comment on what might be expected as a result of the breaking of the reversal pattern this morning with the break of 28. Particularly in light of its sitting right on top of its ascending pnf trend line, Good short term buy with risk management below?? or ??

Today's trade at $28 was a 3-box reversal. The only thing this "does" is negate the "bearish signal reversed" pattern we talked about last week as we now have a series of "equal" X's at $31 and not the series of lower highs that is needed for this pattern.

Per your question of "risk/reward" this is perhaps an excellent risk/reward bullish trade near-term, with a stop at $25, which just so happens to be my original profiled stop on 1/2 bullish position in the underlying stock of INTC last week. Link

Now we understand the current bearish vertical count on INTC is still $22, so bulls need a stop at $25 for protection. Link

But then, a risk/reward trader may understand today's profiling of Cisco (CSCO) as bearish. Here we see a good stop at $28 for a bear, and bearish vertical count of $7. Note the "trends" of INTC versus CSCO. Both good risk/reward trades. Link

 
 
  Jim Brown   5/28/02,  1:53:02 PM
Pivot Trade Signals
The OEX is hovering at 532-533, which represents an exact retracement of the gap open on May 14th. The close on May-13th was 533.48. If it were not for the negative sentiment this would appear to be an excellent entry point for a long position. I would prefer to make that entry on any drop to 530, which was the intraday support from the 13th. An even better entry point would be 520-522 which was the intraday support from the 7th-10th. Using these levels let's plan on closing the short and buying the dip "should" the OEX move to the 530 level. I will follow this up with a specific signal at the time should this come to pass. This is just my opinion as I "think out loud". We will see how the afternoon develops.

 
 
  Jim Brown   5/28/02,  1:36:06 PM
Pivot Trade Exit Point Alert - OEX/SPX/DJX
With conditions improving we may soon be stopped out of the morning's short at our entry point. Despite the "apparent" improvement in the indexes I am not going to lower the entry point for the long signal currently at 537.50 (SPX 1079 est). The rising intraday range has resistance to 537 and we want to get past that level before taking a long position.

 
 
  Jim Brown   5/28/02,  1:27:17 PM
Pivot Trade Signals
Suppress that urge! I almost had to sit on my hands to prevent buying that last bounce. I kept telling myself, "wait for 10,000." The Dow has been laboring under that level since 10:51 this morning. I am using that level as a confirmation of any move in the other indexes.

When the markets are trending sideways in VERY weak volume as we are seeing today it is very hard not to want to make something happen. I have had a dozen emails pointing to a bottom in the SOX, BTX, (your sector here) and calling a bottom in the broader markets over the last two hours. They may eventually be correct but we need to wait for confirmation. These +2 to +3 point swings are meaningless in the long run. Be patient!

About the only thing we can count on today is that we are likely to see another big move before the days end. Which way is still up for discussion.

 
 
  Jeff Bailey   5/28/02,  1:25:25 PM
Treasury Watch now we're seeing YIELD across all maturities back in the green. Just marginally and perhaps "mirror image" of lower YIELD action a couple hours ago. Very seesaw action and may have some short-term equity bears a little jittery.

Biotech (BTK.X) 417.35 +0.36% and now Networking Index (NWX.X) (unchanged) finding a little bit of firming too.

GSTI Software (GSO.X) 122.26 -1.74% has been stuck here for last couple of hours. Semiconductor Index (SOX.X) 491.51 -1.62% off worst levels, but not showing much leadership that a QQQ bull would like to see. Not yet anyway.

 
 
  Jeff Bailey   5/28/02,  12:41:48 PM
Boston Scientific (BSX) $26.53 -1.5% ... announces it has received the CE Mark for its Symbiot Covered Stent System and will begin immediate commercialization of the product in Europe. Link

P/F chartists will note that while stock did trigger "bullish triangle" at $26, stock has met its past bullish vertical count of $26.50. May wait for break to new 52-week high, or look for bullish entry at $24, if stock were to trade $21 (giving sell signal) that would then set up potential for new bullish vertical count on a trade at $28.

 
 
  Jim Brown   5/28/02,  12:39:01 PM
Just as the indicators on the 5 & 10 min charts were turning positive another down draft hit. There was a rumor that there could be a problem when Bush left the NATO meeting an hour early. What did he know and why did he leave? That question worried traders and the futures market took a dip while everyone waited for a news announcement that has not come. Now back at the lows of the day we are waiting on the next rumor to give us direction. (grin)

 
 
  Jeff Bailey   5/28/02,  12:24:12 PM
QQQ & Biotech there are 18 "biotech type" stocks that are components of the QQQ. (ABGX, AMGN, BGEN, BMET, CEPH, CHIR, GENZ, GILD, HGSI, ICOS, IDPH, IMCL, IMNX, IVGN, MEDI, MLNM, PDLI, SEPR)

Those showing gains in group as it relates to QQQ are ICOS +4.95% Link , ABGX +1.64% Link , IVGN +1.73% Link , PDLI +1.32% Link , BGEN +1.07% Link and represents 5 of top 8 gainers in QQQ here.

All 5 trade below trend. Some action today hints of short-covering from more overextended downside levels.

 
 
  Jeff Bailey   5/28/02,  12:18:45 PM
Biotechnology Index (BTK.X) 416.05 +0.05% .... first "tech" sector to turn green after this morning's reversal back lower. Nothing major here, but monitoring to see if this sector might have QQQ firming a bit.

 
 
  Jim Brown   5/28/02,  12:11:16 PM
Pivot Trade Signals
Only five Dow components are positive at this time. EK, have you looked at this chart lately?, HPQ, MMM, MO, DIS. Not you normal market movers! The biggest Dow losers are AXP -1.05, KO -1.28, HD -2.34, MSFT -1.32, PG -1.41, WMT -1.32.

 
 
  Jeff Bailey   5/28/02,  12:10:32 PM
Treasury Watch YIELDS on 30, 10 and 5-year have all reversed marginally lower now (buying in bonds) as negativity toward stocks has gotten traders a little more defensive today.

The 13-week YIELD ($IRX.X) still showing green at 1.732%, just below the current Fed funds rate of 1.75%.

Short-term action hints that bond market doesn't see Fed lowering rates anytime soon, but perhaps leaving rates where they are for June meeting. Right now, about 11% of market participants see chance of Fed raising rates at June 26th meeting. 47% see Fed raising rates at August 13th meeting.

 
 
  Jim Brown   5/28/02,  11:52:29 AM
Pivot Trade Signals
At the risk of jinxing the markets I will report on the improving internals. There has not been a major change but the advance/decline ratio has improved to .57. This is still very negative but coming off the .51 low for the day. New highs are 105 to new lows of 65 which is surprising considering the negative indexes. This continues to indicate a stealth rally in the broader market. The VIX hit a two week high at 23.37 this morning and has settled in the 23 range intraday.

 
 
  Jim Brown   5/28/02,  11:44:18 AM
Pivot Trade Signals
The S&P has paused at 1070-1072 and could be drawing the attention of dip buyers. The next minor intraday support is 1067, which dates back to May-13th. Should that fail then 1052-1054 would be the next major test. This is the support level from May-7th and also from the month of October. A bounce here would be a major buy signal. Obviously we are still 20 points above those levels but I am just trying to set the stage for future possibilities.

 
 
  Jeff Bailey   5/28/02,  11:29:35 AM
Jeff, If I remember correctly, you are bullish on the Qs. Can you elaborate on your bullish bias? Time frame and target.

For those that have been following, I have "two" bullish biases in the QQQ right now.

First was 05/06/02 in the September $30's. Therefore bullish bias remains until expiration, or target of $34-$35 is achieved.

Second was on Thursday at QQQ $31.07 and target of $33.25, stop $29.95. This was short-term for this week using market history as catalyst. We used "anchoring" in GSO.X and BTK.X on Thursday as technicals to be looking long the QQQ on Thursday.

Disclosure, I have bullish positions in the QQQ.

 
 
  Jim Brown   5/28/02,  11:25:10 AM
Pivot Trade Exit Point Alert - OEX/SPX/DJX
With the continued drop in the major markets I want to lower our stop to just below our entry point in case we get a sudden rebound. Change the stop to 534.75 (SPX 1074.75 est)

 
 
  Jim Brown   5/28/02,  11:20:52 AM
Pivot Trade Signals
More on the Consumer Confidence numbers. Analysts are worried that the CC number, while slightly above estimates, was still below the March numbers. This makes the second month in a row that numbers have been lower than March and indicates that consumers are still cautious about the future and maybe even worsening. Fewer consumers were contemplating purchasing a home according to the numbers and many were expecting interest rates to rise soon. Consumers also expected the business environment to get worse going forward. These internal numbers could have been partly responsible for the morning drop.

 
 
  Jim Brown   5/28/02,  10:56:01 AM
Pivot Trade Entry Point Alert - OEX/SPX/DJX
The SHORT on the OEX/SPX/DJX was triggered at 10:46:16 when the OEX traded below 535 at 534.96. (SPX 1074.99 est) We are going to put a tight stop on this should buyers decide this is the opportunity they were looking for. The stop is 537.50 (SPX 1079 est) which is the same as our trigger to go long. If we get a bounce here at this level it could energize dip buyers and trigger short covering by the bears. With internals still declining it is unlikely but never bet against the unexpected!

 
 
  Jeff Bailey   5/28/02,  10:52:03 AM
Cisco Systems (CSCO) $16.23 -1.9% ... I think stock looks "pricey" relative to the QQQ. Would be looking short/put here, target $14 over next couple of months. Good "offsetting" trade for bull in QQQ.

 
 
  Jim Brown   5/28/02,  10:49:25 AM
Pivot Trade Signals
More on the Russell. With the yearly Russell re-balancing in the wings do you think money managers are playing some games here? The Russell will be rebalanced on June-30th based on the market caps of all stocks on May-31st. This will require index fund managers to sell large quantities of the last years losers, pushing them down even further and buying large quantities of the winners. This happens yearly and provides some excitement for summer traders.

 
 
  Jim Brown   5/28/02,  10:45:25 AM
Pivot Trade Signals
The bottom fell out of the Russell-2000 this morning. Currently down -4.11 at 489.53 it appears ready to roll over even further. The breakdown in the small caps could be a leading indicator for the other indexes over the next few days. The rally last week was commonly referred to as a big cap rally as money managers were putting money into the more liquid issues. This was contrary to the trend earlier in the year when the Russell was setting relative highs at 518 in April. The 489 level today is below last weeks support of 490 and well above next support at 469. A break here could provide traders with a very negative indication.

 
 
  Jeff Bailey   5/28/02,  10:45:20 AM
AT&T (T) $12.51 -2.18% ... breaking to 52-week low today. Looks vulnerable to the December 2000 lows near $12.00. Link

P/F chart remains bearish with vertical count of $9.50.

 
 
  Jeff Bailey   5/28/02,  10:32:45 AM
L-3 Communications (LLL) $61.91 -2.5% ... stock lower after Friday's filing for $750 million offering. Link

Today's trade at $62 is double-bottom sell signal in longer-term upward trend. Trader long the underlying stock may sell covered call here to work down cost basis. Rising 50-day MA at $61.34 has been technical support two prior tests ($43.40 and $53.20)

 
 
  Jim Brown   5/28/02,  10:32:36 AM
Pivot Trade Entry Point Alert - OEX/SPX/DJX
There has been no bounce as of yet. At these levels there could be a serious downdraft if they are broken yet they are also serious support. The Dow is very near 10000, the Nasdaq at 1644 and the S&P nearing 1075. While nobody knows which direction will prevail let's put in a signal for both. This should allow us to capture the move in either direction.

Go long the OEX/SPX/DJX if the OEX trades above 537.50. (SPX 1079 est) Go short the OEX/SPX/DJX if the OEX trades below 535. (SPX 1075 est)

 
 
  Jeff Bailey   5/28/02,  10:26:38 AM
Pfizer (PFE) $35.35 -0.39% ... Granted FDA approval to market Neurontin for the management of post-herpetic neuralgia. Link

 
 
  Jim Brown   5/28/02,  10:24:31 AM
Pivot Trade Signals
The OEX has paused at its last Wednesday's low of 536 but the SPX is still two points above its 1075 low for the same time. I really hate to jump in here with a short position after the major drop in the last 15 minutes. I keep expecting the selling to abate since this severity is extreme. As I write this, the Dow actually posted a small green candle on the minute chart. Daylight at the end of the tunnel or a train heading in our direction?

 
 
  Jeff Bailey   5/28/02,  10:23:19 AM
Treasury Watch YIELD across all maturities slightly higher this morning, indicating marginal selling in Treasuries. Will monitor closely to see if negative stock action drives cash back toward the perceived safety of Treasuries. Will set an "upside" YIELD alert on 10-year YIELD at 5.21% to alert to any meaningful selling in 10-year YIELD, which would be just above the now rounding lower 50-day MA. Link

 
 
  Jim Brown   5/28/02,  10:17:49 AM
Pivot Trade Signals
The market internals have drastically changed in the last ten minutes. The advance/decline ratio went from a positive 1.20 just before the announcement to a negative .61 at 10:13. The VIX spiked to 22.68 on the severity of the sell program. The Nasdaq is slowing as it approaches the 1644 low I mentioned earlier but the rate of decline for the Dow is still very steep. If buyers are going to appear it needs to be right here!

 
 
  Jim Brown   5/28/02,  10:14:04 AM
Pivot Trade Signals
Buy the rumor, sell the news. A monster sell program hit at 10:02 just as the markets were seeing a lift from the positive economic numbers. The apparent good news for some was evidently a reason to take profits for others. We will wait patiently for some indication that buyers are seeing this dip as a blue light special before picking a direction. My first impulse is to buy support here and look for a bounce but if the market cannot rally on positive economic numbers and no negative weekend events then maybe the real direction will emerge as down.

 
 
  Jeff Bailey   5/28/02,  10:11:04 AM
Research in Motion (RIMM) $15.69 -4.85% .... stock rather defensive today. Mentioned this stock along with Handspring (HAND) in last Thursday's 11:00 Update Link

I still like the RIMM December $15 puts (RULXC) from original profile of $2.60 here at $3.20.

Disclosure ... I currently hold a bearish position in RIMM

 
 
  Jim Brown   5/28/02,  10:08:30 AM
Pivot Trade Signals
The Confidence number was 109.8 and very slightly above the estimates. The expectations component was 109.4 with the present situations at 110.3. The Conference board commented that the rate of climb could be leveling. The Existing Home sales rose a higher than expected +7% at 5.79 million.

 
 
  Jeff Bailey   5/28/02,  10:05:27 AM
Existing Home Sales were stronger than expected at 5.79 million.

 
 
  Jeff Bailey   5/28/02,  10:04:44 AM
Consumer Confidence was slightly better than expected at 109.8 for May.

 
 
  Jim Brown   5/28/02,  10:02:28 AM
Pivot Trade Signals
The Dow is approaching its Friday low of 10084 and not far off its 10063 low from last Wednesday. The Nasdaq has already broken below the Friday low of 1658 but firmed at that level. The prior low from last Wednesday was 1644. These are critical support levels going into the Confidence report

 
 
  Jeff Bailey   5/28/02,  10:01:09 AM
Consumer Confidence and Existing Home Sales due out at 10:00 AM EST. Economists are looking for a confidence reading near 109.6 and Existing Home Sales of 5.37 million.

 
 
  Jim Brown   5/28/02,  9:57:31 AM
Pivot Trade Signals
The Consumer Confidence numbers at 10:AM ET could provide a boost or knock the props out from under the current support levels. The consensus estimate is 109.6 and up from the prior release of 108.8. We will also get Existing Home Sales at 10:AM and that number is expected to be 5.37 million units. This is also down from 5.40 million in April's report. We will wait for these reports before making a play decision.

 
 
  Jim Brown   5/28/02,  9:53:12 AM
Pivot Trade Signals
The Nasdaq is coming very close to the 1660 level as the Dow nears 10100 again. Definitely a test of wills here for the bulls/bears. While some thought buyers would emerge this morning with no terrorist events over the weekend it appears that sellers are still in control.

 
 
  Jim Brown   5/28/02,  9:47:53 AM
Pivot Trade Signals
The markets are flirting with negative territory as indecisiveness rules. The Dow dipped into negative territory for a couple minutes to 10095 before firming slightly. The Nasdaq came within two points of negative before firming slightly. It definitely looks like the opening enthusiasm has waned despite the positive advance/decline ratio at 1.29.

 
 
  Jim Brown   5/28/02,  9:42:15 AM
Merrill trimmed estimates on Intel before the open but retained its strong buy rating on the stock. They knocked a penny off their estimate. INTC is trading lower by -.29 cents.

 
 
  Jim Brown   5/28/02,  9:35:49 AM
The Dynegy CEO Chuck Watson has resigned amid controversy over sham trades with CMS Energy. The CMS CEO quit for the same reason four days ago. DYN opened up on the news at $10 after closing at $9.32 on Friday.

 
 
  Jeff Bailey   5/28/02,  9:33:56 AM
Tower Semiconductor (TSEM) $6.71 +5.6% ... stock higher after company announces that orders throughout the current quarter are higher than previously expected, and therefore it currently expects sales in Q2 to increase by at least 35% over the first quarter of 2002. In addition, TSEM indicated that it expects a moderate growth rate also throughout the second half of 2002.

 
 
  Jeff Bailey   5/28/02,  9:31:20 AM
Handspring (HAND) $2.03 ... stock trading higher at $2.22 after announcing it has unveiled its Treo 90 device with keyboard.

In Thursday's 11:00 Update, we discussed potential impact of this on Research in Motion (RIMM) Link

 
 
  Jeff Bailey   5/28/02,  9:28:02 AM
DiamondCluster Intl. (DTPI) $9.52 ... stock getting hit to downside at $8.35 in pre-market after Wachovia Securities downgrades to "sell" in wake of company's recent option exchange program. the program lowers the average effictive strike price on the options. After exchange, total options will equal approx. 73% of shares outstanding-- very high relative to DTPI's non-troubled peers. Link

 
 
  Jeff Bailey   5/28/02,  9:16:39 AM
TXU Corp. (TXU) $54.30 ... Company to offer $750 million of securities. Link

 
 
  Jim Brown   5/28/02,  9:15:57 AM
Leigh Stevens
Leigh will not be contributing to the Market Monitor today or tomorrow. He had a family medical emergency over the weekend and had to leave town unexpectedly. He will be back on Thursday.

 
 
  Jim Brown   5/28/02,  9:13:11 AM
Pivot Trade Signals
The futures are pointing to a higher opening despite a downgrade of Home Depot by UBS Warburg. Personal Income rose +0.3% but Personal Spending rose a less than expected +0.5%. Analysts were expecting +0.7%.

The major indexes are all at support, Dow 10100, Nasdaq 1660 and the S&P is slightly above 1080 at 1083. This could be a critical day for traders. While the futures are higher they are not indicating a giant opening. There are buyers out there but there still appears to be no conviction. We need to watch and see how this opening plays out before developing a directional bias. A positive open and early fade could set the tone for the entire week. There are no major earnings to give the market direction and volume is likely to be very light.

 
 
  Jim Brown   5/24/02,  11:29:38 PM
Market Monitor
The Market Monitor for Friday May-24th has already been archived but may be seen by clicking here: Link

Remember, Monday is Memorial Day and all the markets are closed for trading. Please join us again on Tuesday at 9:15 for your daily quota of thrilling market action.

 
 

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