Traders Looking For A Pullback

November 8, 2002
Daniel Beighley

The
markets declined for the second day in a row on lower volume.
Commodities markets put in a half day, and will be closed Monday. This will keep
volume lower due to a reduction in asset allocation with stocks and bonds and
currencies, etc.Â Kevin
Haggerty has been looking for a pullback to set up a potential third wave
rally this fall, which is now likelier due to the Republicans’ mid-term election
wins.

There were no economic releases
today.

The 10-year U.S. Note
was +085 at 115 015.

The Dollar was -0.45 at
104.68.

Volume was average, at
1,398,928,000 on the NYSE, and
1,591,925,000 on
the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.45, and down
volume over up volume by a 2.96 ratio. Nasdaq declining issues over advancing
issues came in at 1.31, and down volume beat up volume by a 2.54 ratio.

The

VIX was -1.72 at 33.56. The

TRIN was -0.30 at 2.03.

Leading the Dow down was
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating),-7.87% at 17.79, as itÂ issued a profit warning for the
full year 2002. The company also said it will eliminate 400-600 jobs and will
close 175 under-performing stores.

Stocks in the news:

Natural gas and utilities
company El Paso Energy
(
EP |
Quote |
Chart |
News |
PowerRating), -16.52% at 7.68, announced a loss for its
fourth-quarter earnings and said that it plans to shut down its energy trading
business.Â

Entertainment giant and Dow
component Walt Disney Co.
(
DIS |
Quote |
Chart |
News |
PowerRating), -3.17% at 17.68,was downgraded by
Merrill Lynch to “neutral” from “buy” based on valuation.

Communications equipment maker
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), -0.45% at 34.78, beat its fourth-quarter pro forma
earnings expectations by $-.04 with profits of $0.31.

Semiconductor maker Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating), -21.92% at 11.36, fell after announcing third-quarter results that
came in below expectations.

Software and programming
company Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating), -0.93% at 26.49, was downgraded
by UBS Warburg to “hold” from “buy” based on valuation.

Broadcasting and cable T.V.
company Univision
(
UVN |
Quote |
Chart |
News |
PowerRating), +6.33% at 27.53, beat its third-quarter
earnings expectations by $0.01 with profits of $0.08 per share.

Drug maker Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating),
+5.56% at 62.24, gained after it reaffirmed its profit estimates and said it is
making progress to resolve its regulatory problems.

Biotech company Protein
Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating), -8.42% at 8.91, fell after it announced a
third-quarter earnings loss that came in below expectations.

Supermarket company Safeway
(
SWY |
Quote |
Chart |
News |
PowerRating), -11.50% at 20.00, issued a profit warning for the fourth-quarter and
2003 due to a weak economy.

Traders Looking For A Pullback

BUY THE FEAR, SELL THE GREED

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