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  Jeff Bailey   5/11/200,  6:45:48 PM
Pivot Matrix for tomorrow at this Link

  Jeff Bailey   5/11/200,  5:44:33 PM
Closing Internals at this Link

  Jeff Bailey   5/11/200,  4:48:59 PM
OSI Pharma (OSIP) $73.92 +2.73% ... trades $73.45 as I type after reporting wider than expected loss of $1.27 per share (consensus was loss of $1.03). Looks like the period from June 5-8 is the date to be monitoring. Link

  Jim Brown   5/11/200,  4:38:36 PM
Cisco saying on the conference call that the extra week in the quarter helped them more than they expected and contributed to them beating by a penny.

  Jim Brown   5/11/200,  4:35:58 PM
OSIP Heavy activity after their earnings, bids as low as $18, ask as high as $127, actual trades in the $73 level. Looks like some traders on a fishing trip. Sure hate to get one of those fills on the ask side.

  Jeff Bailey   5/11/200,  4:34:16 PM
If (es04m) settles above 1,091.75, I'll go out on a limb and say it will trade 1,104.25 by week's end. I'll also go out on a limb and say SPX.X will trade its WEEKLY Pivot of 1,108.38.

  Jeff Bailey   5/11/200,  4:21:19 PM
Cisco (CSCO) $22.25 +2.91% ... trading $22.03 as I type. After-hour low has been $21.60 on the knee-jerk.

  Jeff Bailey   5/11/200,  4:13:26 PM
Good note Jane (16:10:54) ... will be watching June crude futures should they trade their bullish vertical count of $41.75. Stocks tend to lead the commodity.

  Jim Brown   5/11/200,  4:03:51 PM
Earnings After the Close - Reduced List:

ANF est = +0.30, actual = +0.31
WTW est = +0.47, actual = +0.47
CSCO est = +0.18, actual = +0.19
OSIP est = -1.03, actual = -1.27
SCMR est = -0.04, actual = -0.04

  Jane Fox   5/11/200,  4:01:07 PM
Dateline WSJ Oil prices settled above $40 a barrel Tuesday in New York -- their highest price in 13 years -- as traders discounted Saudi Arabian calls on the Organization of Petroleum Exporting Countries to raise its output.

Crude oil for June delivery surged $1.13 to $40.06 a barrel, its third close above $40 a barrel since the contract began trading on the New York Mercantile Exchange in 1983. The last time was in the run-up to the first Gulf War, when crude reached its all-time closing high of $40.42 on Oct. 11, 1990.

  Linda Piazza   5/11/200,  3:57:17 PM
I thought perhaps there would be an attempt to close the OEX above the 200-dma, and there has been. It looks as if it might end the day jammed up underneath the resistance from that former supporting trendline from the broadening formation I've been mentioning since April, however.

  Jeff Bailey   5/11/200,  3:53:00 PM
Cisco hold over earnings? ... yes, my swing trade calls for CSCO in today's monitor $0.50 per contract, were for a hold over earnings.

However! If I (Jeff Bailey) were also holding a profitable QQQ swing trade long from yesterday, as well as CSCO calls, then I'd probably sell one or the other prior to the close (probably the QQQ as profit has CSCO calls free and downside limited), book a profit on one. Selling one (if holding both) would be in the view of risk management.

  Linda Piazza   5/11/200,  3:40:34 PM
As I type, the OEX is again headed below the mid-channel S/R on the five-minute Keltner charts. Keltner support is at the current level, at 533.02, and then down at 530.75. It would not look good to see the OEX close below its 200-sma/ema's, though, and I wonder if there will be a push to keep it there into the close.

  Jeff Bailey   5/11/200,  3:16:23 PM
03:00 Internals at this Link

  Jeff Bailey   5/11/200,  3:02:36 PM
Cisco Systems (CSCO) $22.25 +2.86% ... session high and trying to bust a move above its WEEKLY R1.

5-MRT has BLUE #4 right here too. #5 at $22.35 and #6 at $22.48.

  Linda Piazza   5/11/200,  2:53:26 PM
What can we say about what's happening with the OEX? It's sitting right on the mid-channel Keltner S/R on the five-minute chart, so in an equilibrium position. No evidence there. To sum up other evidence, the OEX has spent most of the day between the 200-sma/ema's but below the former supporting trendline of lower lows from the broadening formation that's been in place since early April. What else? On the 30-minute chart, it's trading within an ascending regression channel that began forming off yesterday morning's low. Depending on which candle shadows you include or don't include, that ascending regression channel is either just now stalling beneath the 50% retracement of the plunge that immediately preceded its formation (at about 535.88) or else has not quite reached it (at about 537.38). Until an unless the OEX can maintain a level above the 50% retracement of the plunge, that ascending channel may well be a bear flag rising into resistance, which is what I tend to believe it might be. At this time, however, it's difficult to say more--in an equilibrium position on the Keltners, caught between support and resistance on the daily chart, and rising but below the important 50% retracement of the plunge on the 30-minute chart. I don't see definitive evidence either way here, and that's what makes active traders crazy on a day like this, trying to micro-analyze every jot up or down.

  Jeff Bailey   5/11/200,  2:33:24 PM
QQQ $35.31 +1.85% ... back to test session high

  Jane Fox   5/11/200,  2:31:45 PM
Dateline WSJ A video posted Tuesday on an Islamic militant Web site showed a group affiliated with al Qaeda beheading a 26-year-old American contractor in Iraq, saying the death was revenge for the abuse of Iraqi prisoners by U.S. soldiers.

Meanwhile, the chief of Iraq's war-crimes tribunal said the U.S. has pledged to hand over Saddam Hussein and about 100 other former regime prisoners to Iraqi authorities by June 30, the date by which the U.S. plans to transfer sovereignty to a new Iraqi government. However, the Pentagon disputed the tribunal's claim.

Also in Iraq, gunmen attacked a U.S.-run civilian convoy in the western desert, leaving some personnel unaccounted for, U.S. officials said. The latest attack came as Iraq's oil minister said the weekend bombing at a southern pipeline had cut oil exports by 30%, taking a toll on the industry that is expected to play a key role in Iraq's economic recovery.

  Linda Piazza   5/11/200,  2:25:30 PM
Is all this talk about higher fuel costs helping stocks such as electrochemical technologies company FuelCell Energy, FCEL? That's hard to say. The daily and weekly charts offer some conflicting evidence. On the daily chart, a confirmed H&S is evident, with the downside target near $12.64, just below the 200-dma at $13.14. I'd certainly expect a bounce from the 200-dma, if hit, so wouldn't necessarily believe that the full downside target would be met, but that doesn't mean that a fall to that 200-dma wouldn't be possible. The P&F chart shows a downside target of $8.50, but there's a bullish support line currently at $14.50. However, the weekly chart shows a possibility of a cup-and-handle formation having been confirmed, with expanding volume about a month ago seeming to confirm that breakout over the $18-19.00 lip of that cup-and-handle formation. However, FCEL has since pulled back, creating an evening-star reversal signal on that weekly chart. While it's possible that the lip is actually closer to $14.90-$15.60, a level that FCEL currently trades above, bearish divergence on the weekly chart supports that reversal signal. There's mixed evidence, then, but all-in-all, it doesn't appear that rising fuel costs have particularly benefited this stock, and it does appear possible, but not necessarily probable, that it will roll down and retest that 200-dma. It looks as if that $14.50-14.90 zone will be the zone that's tough to break on the way down, however.

  Jeff Bailey   5/11/200,  2:06:26 PM
Buy Program Premium SPX.X 1,091.75.

Where we might have looked for one, at WEEKLY S1 of 1,089.02.

  Linda Piazza   5/11/200,  1:49:11 PM
Today's OEX high touched that trendline of descending lows that was part of the broadening formation in which it's traded since early April. That supporting trendline now is serving as resistance.

  Linda Piazza   5/11/200,  1:24:33 PM
The OEX is turning lower beneath the mid-channel Keltner S/R, and also below the 200-ema, although it's just barely below the 533.87 level of the 200-sma. The five-minute chart shows a possibility that it could bounce from the current level, down to 533.33. Be careful, bulls, if that happens, because you're not safe yet. If the OEX then rounds down again below 535.35, there's danger of it completing a H&S on that five-minute chart.

  Jeff Bailey   5/11/200,  1:21:48 PM
Swing Trade raise bullish stop alert for QQQ to $34.85 (just under today's DAILY R1)

QQQ $35.16 +1.38% slipping back under WEEKLY Pivot here

SPX 1,092.00 at MONTHLY S1, but still above WEEKLY S1 (1,089.02)

  Jeff Bailey   5/11/200,  1:14:20 PM
OSI Pharma (OSIP) $73.70 +2.43% (update) ... just above its WEEKLY Pivot of $73.29.

Reports quarterly earnings tonight after the bell. Consensus is looking for a loss of $1.03 per share versus year ago loss of $0.75.

Still swing trade long the July $90 calls (GHU-GR), no stop, target $120.

  Linda Piazza   5/11/200,  1:06:29 PM
I guess we should have expected a day like today after the big ranges the OEX has traded over recent days. Doesn't make it any more fun while it's happening, though. Resist the urge to micro-analyze the action today, however.

  Linda Piazza   5/11/200,  12:59:08 PM
Busy with other duties lately, I haven't been paper-trading the IPO's released or watching them according to Jeff's 5MRT system. I should have been. Today saw the release of Atlas America's IPO, with Atlas being an independent energy company that develops and produces natural gas, also transporting it, although that's not their primary focus according to the information that I have. The stock first traded at 11:25, with an opening level of $17.32, and with a first five-minute range of $17.16 to $17.40. On the second five-minute candle, ATLS triggered a bullish play according to Jeff's system (a system using fitted or stacked retracement levels). A few minutes ago, it hit the $18.48 upside target.

  Jim Brown   5/11/200,  12:39:48 PM
QQQ - Goldman Sachs has been a big buyer of May 34 puts today @ .25 They purchased 60,000 on CBOE and 100,000 total nationwide. It is tough to draw any conclusions from this because we do not know if they were opening a new position, closing an existing position or using it as a hedge against a long position in something else. I would bet they are expecting more downside but that is just my opinion.

  Jeff Bailey   5/11/200,  12:37:48 PM
QQQ $35.20 +1.55% .... back to check its WEEKLY Pivot.

SOX.X 466.25 +1.6% ... after trading its WEEKLY R1 (469.96) with current session high of 470.15.

Bulls look for QQQ to provide support strength is my thinking.

SPX.X 1,093.21 pulls into its MONTHLY S1 of 1,092.92.

Looking highly computerized at this point.

  Jim Brown   5/11/200,  12:22:47 PM
The Richmond Fed Manufacturing Survey today dropped to 13 in April from 30 in March. New Orders fell to 17 from 28 and the six month outlook fell to 22 from 29. It appears the recovery is not charging ahead in all areas of the country. This was the first drop in the Richmond Survey since November. This was likely the reason for the 10:AM dip.

  Jim Brown   5/11/200,  12:19:28 PM
The Job Openings and Labor Turnover Survey (JOLTS) today showed that openings surged +10.9% in March and well over the +4.3% in February. New hires rose by +441,000 in March according to the survey. Despite being a month behind the Jobs Report this is a very strong confirmation that the pace of hiring has increased substantially.

  Linda Piazza   5/11/200,  12:19:02 PM
The same Keltner resistance on the OEX five-minute chart is currently at 535.76-535.84, with support drawing close, too, from the current level, down to 534.40. Channels narrow, suggesting a breakout one direction or the other after a period of equilibrium.

  Linda Piazza   5/11/200,  12:14:54 PM
The OEX is still finding resistance at that former supporting trendline that I depicted in the chart linked to my 11:33 post.

  Jeff Bailey   5/11/200,  12:14:10 PM
Cisco Systems (CSCO) $22.15 +2.45% .... session high has been $22.23, where CSCO's WEEKLY R1 is $22.22.

I'm thinking if the QQQ is going to "catch up" to the SOX.X in the WEEKLY Pivot as suggested by our comparison test between SOX.X and NDX.X yesterday morning, then CSCO most likely the key stock.

  Linda Piazza   5/11/200,  12:11:06 PM
The OEX broke below the supporting trendline of the rising wedge on the five-minute chart, but has traded sideways since, rather than breaking down precipitously. Perhaps it is broadening into a regular rising channel.

  Jim Brown   5/11/200,  11:50:13 AM
YHOO - According to Goldman Sachs YHOO is 30% undervalued. They issued a report today suggesting that compound earnings though 2007 put their YHOO price valuation at $58 to $66. They are expecting Yahoo to grow its business by 40% per year. YHOO jumped +2.50 on the news to resistance at $54.

  Jeff Bailey   5/11/200,  11:43:24 AM
Semiconductor Index (SOX.X) 469.96 +2.37% ... trades WEEKLY R1 here.

QQQ $35.36 +1.99% ....

SPX.X 1,095.21 ... edges above MONTHLY 80.9% retracement (see 11:00 AM EDT intra-day)

  Linda Piazza   5/11/200,  11:42:54 AM
The current OEX five-minute climb needs to broaden out a little, as it's beginning to look a little rising wedge-ish. That's not a bullish pattern, but it can be resolved and broadened, so I'm trying not to draw too many conclusions.

  Linda Piazza   5/11/200,  11:33:33 AM
Here are a couple of things I'm watching on the OEX daily chart: Link

  Jim Brown   5/11/200,  11:30:19 AM
Earnings After the Close - Reduced List:

ANF est = +0.30,
WTW est = +0.47,
CSCO est = +0.18,
OSIP est = -1.03,
SCMR est = -0.04

  Linda Piazza   5/11/200,  11:16:21 AM
OI Put Play WHR: Like AMZN, WHR is trying to follow through with the third candle of a three-candle reversal signal known as a morning-star formation. In WHR's case, the task has proven difficult, with WHR producing an upper shadow on today's candle, so far. The 10-dma has now fallen to $64.60, at about the level of the H&S neckline, and below our current $65.76 stop. WHR saw big losses after being listed, a benefit for our put play, so I began counseling yesterday that play participants should consider their own account management styles when deciding whether to stick with our stop loss or to set one appropriate to their own styles, not letting a profitable play turn unprofitable. I encourage the same today. We know that a bounce has begun and that it's likely to be turned down beneath resistance, but neither oscillators or candles provide evidence that guarantees that's going to happen.

  Linda Piazza   5/11/200,  11:08:58 AM
Some five-minute Keltner resistance lines have now snaked just above the current OEX position, interposing themselves between the current OEX level and upper Keltner resistance. That new resistance lies from 535.35-535.55, and it looks as if the OEX is about to test it. Remember that the OEX can tug those lines a little out of place.

  Linda Piazza   5/11/200,  11:06:07 AM
OI Put Play LTR: LTR just refuses to drop, but is creeping up this morning as slowly as it crept down last week. Yesterday it found support at the 100-dma and is using that as a base from which to bounce, but that bounce is tepid so far. The stop remains at $60.01, but as I did yesterday, I encourage you to set personal stops based on the losses incurred on your purchased options. I wasn't yet substituting on the pick team when this play was picked, so am uncertain of options prices when it was, but setting a stop based on a loss of 1/3-1/2 of your option's value is a tactic used by some.

  Jim Brown   5/11/200,  11:04:01 AM
The market internals for Monday were very negative. In fact it was the most negative day since October 10th 2002. New 52-week lows broke 1000 at 1181 and that was the first time over 1000 since 10/10/02. New 52-week highs were only 32 and also the lowest since July-25th 2002.

  Linda Piazza   5/11/200,  10:57:48 AM
OI Put Play AMZN: AMZN's stop was lowered last night to $44.75, just above the 30- and 50-dma's. This morning, the stock is following through on the suggested reversal signal, perhaps on its way to producing the third candle of a three-candle reversal signal, a morning-star formation. The day is far from over, but those in profitable positions should feel free to set their own stops, including one at a breakeven level. For those who want to take on slightly more risk, this morning the 200-ema is measuring $44.76, just above our stop, so those traders might allow a few cents extra above our official stop. There's no one right way to do this, but only right account-specific ways to do it, and that's your decision. The person who takes a breakeven exit risks having AMZN roll over and plummet all the way to the bottom of its descending regression channel, our profit target, without being able to participate in those gains. The one who elects the higher exit risks taking a loss if AMZN heads up past that 200-dma after all. Our official stop loss will remain $44.75 as posted on OIN's pages, however.

  Linda Piazza   5/11/200,  10:43:00 AM
This morning, the TRAN challenges its 200-ema at 2821.62 (according to stockcharts.com), with the TRAN at 2828.51 as I type. The 200-sma is much higher, at 2858.61, but it was the -ema that supported prices through the middle of March and then served as resistance for several days after the TRAN had moved below that average. MACD remains bearish, but this support test may determine whether the TRAN produces a higher low or heads back down to test that March low area.

  Jim Brown   5/11/200,  10:41:21 AM
The Dow continues to hover right around its 200dma at 10005 which should be support. That support broke yesterday and is proving to be weak again today. If the 10K level breaks today it could set off another round of selling. The same level on the SPX is 1078 and the low for yesterday. So far that SPX has rebounded much higher than the Dow and that was due in part to the -$4 drop in CAT which led the Dow much lower on Monday.

  Linda Piazza   5/11/200,  10:31:08 AM
The OEX still clings to important support in the form of the 200-sma/ema's and the mid-channel Keltner support on the five-minute chart, but that hold remains tentative, with five-minute MACD on the verge of a bearish cross. As I typed, the OEX began moving down a little, but remains within testing range of the 200-sma.

  Linda Piazza   5/11/200,  10:06:39 AM
The OEX is so far holding just above the five-minute central Keltner channel support and, more importantly, above the 200-sma/ema's. That hold seems tentative as yet, but it's there and holding there, with the advdec line so far holding strong, too. That gives more support to the bullish case right now, but I'd sure be ready to bail if I was in a bullish play or thinking about entering one. For now, I consider such a play a dangerous and countertrend one, even though 538.50-540 might be possible.

  Jonathan Levinson   5/11/200,  10:04:09 AM
The Fed has replaced 6B in expiring repos with in overnight repos, for a 750M net drain today.

  Jeff Bailey   5/11/200,  10:03:40 AM
Swing trade call option alert for the Cisco Systems May $22.50 calls (CYQEX) offered $0.50, target $23.

CSCO trading $21.95 +1.56% here.

  Jeff Bailey   5/11/200,  9:58:43 AM
Buy Program Premium SPX 1,093.04

  Jeff Bailey   5/11/200,  9:48:56 AM
S&P 500 Index (SPX.X) 1,092.73 +0.51% .... back to its MONTHLY S1 here.

  Linda Piazza   5/11/200,  9:47:34 AM
For those of our readers who have asked me to update each day the first five-minute range for the OEX, that range was from 533.35 to 534.69.

  Jeff Bailey   5/11/200,  9:45:51 AM
Netflix (NFLX) $29.25 +8.3% Link .... CSFB upgrades to "outperform" with target of $43.

  Linda Piazza   5/11/200,  9:45:14 AM
As I make observations now that the markets have opened, I'd note that although the OEX moved temporarily above the 200-sma/ema's, it's still within the testing rather than surmounting range. (See my 9:42 post.) Those Keltner channel lines have a sort of gravity, too, that tends to tug the OEX candles back unless they break completely free of them. This current resistance hasn't yet been surmounted in my opinion.

  Linda Piazza   5/11/200,  9:42:26 AM
Here will be a good test of my observations. Here's the first OEX-related post that I would have made this morning pre-market open, undoctored after the market opened:

Yesterday, the OEX tested its 200-dma, as many speculated that it might do, myself included. Now what? Daily MACD looks bearish, but RSI shows tentative bullish divergence, divergence that can be erased. Is it time for a bounce?

Thirty-minute RSI had hooked up by yesterday's close, but we know that kind of RSI action can be fickle. Thirty-minute MACD lines try to turn up, too, with the MACD histogram growing less negative. The fifteen-minute Keltner charts show a double-bottom-ish formation (some fifteen-minute candle shadows are below the double-bottom level) that will be confirmed on a move above the 533.98 peak between the two troughs, with an upside target of about 538.50 or so if confirmed. Mid-channel resistance on the fifteen-minute chart is from 538.88-539.76. Five-minute Keltner charts show that the OEX may attempt to reach next Keltner resistance, at 533.74-534.27, both near the levels of the 200-sma and 200-ema's. Beyond that, next Keltner resistance on the five-minute chart lies at 539.33. The 533.75-534.50 zone keeps being mentioned, either as the location of those important moving averages or as the location of Keltner resistance. Before a rally of any size can be mounted, those 200-dma's, that last five-minute high, and five-minute mid-channel Keltner resistance must be cleared, setting up the possibility that the OEX could then move up to 538.50-540.

First, that resistance must be cleared, and I can't be certain from this vantage point that it will be. However, I do note that, as of today, it will be a week since the OEX last touched upper Keltner resistance. I checked back to March's declines and noted that a week was about the time the OEX spent between touches of the upper Keltner boundary then, too.

  Linda Piazza   5/11/200,  9:37:46 AM
Sorry to be late signing on. I had some difficulty posting this morning. Here's the first post that I would have made this morning, although the European indices will have moved since this was prepared, of course:

Good morning. The Nikkei opened slightly in the red, dropped just below 10,800, and then began climbing. Early decliners included NTT Data and Softbank, with the two closing lower by 9.2 and 8.7%, respectively. NTT Data declined after saying yesterday that full-year net profit and sales may decline for the year ending March 2005, with net profit perhaps to fall as much as 40%. Softbank declined after posting a net loss bigger than the previous year's. Asahi Glass, the nation's largest glassmaker, was an early gainer after reporting earnings. With the help of that gainer and others as investors bought blue chips on dips, the Nikkei climbed almost 90 points above Monday's close, but was unable to maintain that high of the day. It closed up 22.48 points or 0.21%, at 10,907.18. Blue chips closing higher included Hitachi, Fujitsu, NTT DoCoMo, and Advantest. Toyota closed flat after its release of the last fiscal year's earnings. As expected, its group net profit was more than 1 trillion yen, at 1.162 trillion yen, the first Japanese company to top that level.

Other Asian bourses mostly climbed. The Taiwan Weighted gained 1.05%. South Korea's vice finance minister asked that domestic institutional investors abstain from placing stop-loss sell orders, with that restraint perhaps helping the Kospi at least manage a flat close, up 0.04%. Singapore's Straits Times gained 0.65% and Hong Kong's Hang Seng gained 0.20%. China's Shanghai Composite gained 0.50%.

With the exception of Russia's Moscow Times, perhaps suffering in news that a Russian citizen has been killed in Iraq, other European bourses currently trade higher. The Moscow Times has dropped 4.67%. In the U.K., those gains come despite the news that the March U.K. machinery output number disappointed, falling 0.3% over February's level with a gain having been forecast. In the E.U., a storm brews this morning over a decision by the ministers to give Italy a reprieve over its rising deficit, with the level of that deficit a violation of the Stability and Growth Pact. Some attendees and market watchers angrily stated that allowing Italy that reprieve set a bad example for the new ministers attending for the first time since ten new member states were admitted. Germany and France also violate those deficit rules. Also of interest, the OECD pronounced the global economic recovery strong, but mentioned that the recovery was bypassing continental Europe and that the continued expansionary policy in the U.S. was a danger.

In early trading, airline stocks led early gains. Air France and KLM Dutch, recently merged, announced passenger traffic numbers for April, showing a 79.5% gain from the year-ago level in a measure of passengers to available seats. In other stock-specific news, Deutsche Bank rose in early trading as it hammers out the details of its offer for a banking unit owned by Deutsche Post. Germany's energy and water group RWE also gained in early trading after reporting Q1 earnings and giving an upbeat forecast for 2004's operating profits despite the dampening factors of higher costs, unfavorable exchange rates, and weather conditions.

As of this writing, the FTSE 100 trades higher by 27.60 points or 0.63%, at 4,422.80. The CAC 40 has gained 33.97 points or 0.96%, to trade at 3,587.32. The DAX has gained 43.98 points or 1.16%, to trade at 3,828.59.

  OI Technical Staff   5/11/200,  9:32:51 AM
Monitor Alert
We are experiencing an intermittent problem with the market monitor this morning and are working quickly to get it fixed.

  Jim Brown   5/11/200,  9:32:15 AM
MCI (Worldcom) reported a loss for the quarter of -$388 million and said it was going to layoff another -7500 workers in addition to the -4500 it said it would layoff in March. This -12,000 worker cut is coming after they emerged from bankruptcy and suggests they are not being received well in the marketplace.

  Jane Fox   5/11/200,  9:09:56 AM
Dateline WSJ In one of the largest class-action settlements ever, Citigroup Inc. agreed to pay $2.65 billion to settle a suit brought by investors of the former WorldCom Inc., who lost billions when the telecommunications giant filed for bankruptcy in 2002 after a massive accounting scandal.

The world's largest financial-services firm, facing many other lawsuits tied to its role in other corporate scandals, also announced it was substantially beefing up its reserves earmarked for pending litigation. Following the bank's addition of $5.25 billion pretax to reserves, and the payment of the WorldCom settlement, Citigroup will have $6.7 billion in litigation reserves remaining.

The actions open an expensive new chapter in the bank's continuing clean-up efforts. Coming nearly a year after its last major settlement with regulators, settlement of the WorldCom lawsuit, which stemmed from Citigroup's underwriting of WorldCom securities, suggests that resolving complaints from private investors could be far more costly for the bank than making amends with the government.

  Jim Brown   5/11/200,  9:07:45 AM
The two remaining economic reports for today are at 10:00:
Job Openings, Labor Survey (last 4.3%)
Richmond Fed Survey (last 30)

  Jim Brown   5/11/200,  9:06:41 AM
The Chain Store Sales fell again to only a +0.3% gain from +1.5% last week.

  OI Technical Staff   5/10/200,  11:44:39 PM
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