Key Intraday Reversal

February 20, 2002
Daniel Beighley

The markets began the day in
negative territory, but managed to stage a turnaround for a key intraday
reversal. Telecoms and biotechs were at the top of the gainers list, with gold
and silver, and oil leading the negative column.Â Â

Further fear of fraudulent
accounting entered the markets after it was said that Computer Associates
(
CA |
Quote |
Chart |
News |
PowerRating) is the subject of a federal investigation, though by the end of the day,
the markets seemed to discount the negative news. The sole piece of economic
data today came in the form of the Consumer Price Index, as the Labor
Department reported an increase of 0.2% in consumer prices. Excluding energy and
food sectors, the Core CPI also came in at an increase of 0.2%, in line with
expectations.

Overall
NYSE volume was 1,403,843,000.
NYSE advancing issues were 1,893,
with up-volume at 897,455,000;
declining issues were 1,225,
with down-volume at 493,931,000.
Overall Nasdaq volume was 1,900,555,000.
Nasdaq advancing issues were 1,980,
with up-volume at 1,278,396,000;
declining issues were 1,533 with
down-volume at 594,584,000. The VIX
was down 2.11 to 22.26. The TRIN
was down 1.50 to 0.85.

On slightly above average
volume, the Dow was able to regain its 50-day MA, the S&P 500 was able to
close above its 20-day MA, and the Nasdaq remained below its major moving
averages, though it closed with a bullish “hammer” formation on its
daily chart. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 1.62%, closed
just below its major moving averages. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), up 2.20%, also closed just below its major moving averages.

Software maker Computer
Associates
(
CA |
Quote |
Chart |
News |
PowerRating), down 17.38% to 20.91, fell on news that the company is
being investigated by the Federal Bureau of Investigation over issues of
accounting fraud. Computer Associates claimed that they were not aware of the
investigation.

Entertainment monster Walt
Disney Company
(
DIS |
Quote |
Chart |
News |
PowerRating) was up 6.43% to 24.33,Â on news that the U.S.
Supreme Court agreed to review Congress’s 20-year extension of copyright
protection pertaining to Mickey Mouse, Pluto, Goofy and Donald Duck.

Media giant America Online
(
AOL |
Quote |
Chart |
News |
PowerRating),
down 4.82% to 24.29, was downgraded by Lehman Brothers to Market Perform from
Buy claiming the company has lower growth potential with its acquisition of
broadband services and its European expansion.

Medical equipment manufacturer Medtronic
(
MDT |
Quote |
Chart |
News |
PowerRating), down 0.74% to 47.20, announced earnings of 26 cents a share, up from
last year’s profits of 25 cents a share. This maker of pacemakers and
neurological-, spinal- and diabetes-related products said it experienced growth
in all areas of its business.

Drug maker IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating), up 10.87% to 62.10, announced that the U.S. Food and Drug
Administration has approved its cancer drug Zevalin.

Advertising company TMP Worldwide
(
TMPW |
Quote |
Chart |
News |
PowerRating), down 8.40% to 29.23, reported earnings had fallen 21%, in line with
expectations. The company cited a soft economy for its decrease in business.

Chip maker Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), up
0.20% to 30.00, said in a filing with the Securities and Exchange Commission
that it expects to break even with earnings for the first quarter, in line with
expectations.

Key Intraday Reversal

BUY THE FEAR, SELL THE GREED

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