Net Surprise

August 30, 2000
Daniel Beighley

Internets and B2Bs rocketed Wednesday on the heels of several analyst
upgrades, while blue chips remained under some selling pressure. By the close,
the Nasdaq had gained 0.5%, the Dow lost 1.0%, and the S&P 500 slipped 0.5%
in a session where volume edged up a bit from Tuesday’s light levels.

For the day, 1.51
billion shares traded on the Nasdaq and 816 million shares changed hands on the
NYSE.

Analysts commented that the market’s quiet but steady August rally has left
it fairly overbought and vulnerable to a pullback once market participants
return en masse after the Labor Day holiday.

"We’ve been churning higher with low volume, and we’re basically looking
for the market to move into a corrective phase in September, so I think we’ll
have some choppy action here in the next few days," said Tim Hayes, Global
Equity Strategist, Ned Davis Research.

"In September, I’ll be looking for the volume to pick up, and there’s a
good chance that will happen to the downside for the first few weeks of
September. I’m looking to see if after a correction we resume some of the
favorable trends that have occurred this month. That could then set things up
for a good rally in the pre-election period, he added.

According to preliminary numbers, the Dow fell 112.09 to 11,103.01, the
S&P 500 eased 7.23 to 1502.61, and the Nasdaq gained 21.74 to 4103.91.

Looking ahead, the July factory orders report will be released at 10:00 AM
ET, and the consensus looks for a decrease of 6.8%.

Net Surprise

BUY THE FEAR, SELL THE GREED

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