Southern Bells

November 17, 2000
Dave Baker

Does it ever amaze you that some of the companies that are hurting the most
are those who produce products that we use almost every day? I am not simply
referring to companies to whom I myself have contributed, such as The Gap
(
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I am thinking of those sectors which do business with each of us almost every
day, such as Telecom.

Over the last few months I have pointed out the continued
weakness in the group, looking specifically at the inverted cup-with-handle
formation last month. Today, it finds itself once again trading near its lows.
After setting a fifth lower high, the group made another move south. While it
did bounce off support earlier this weak, it remains near its lows in a small
congestion pattern. With a bearish overtone still in place, monitor this group
for continued weakness.

Let’s take a look at several of the
names in the group that are showing similar weakness. Topping the list is one of
the group’s leaders, Worldcom
(
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even give this stock away.