Microsoft Action Kicks Off Potentially Volatile Week
  Friday’s market consisted of the early gap-up, from 9:30 to 9:55 AM ET–just five (five-minute) bars. It was similar to last Wednesday and Thursday, as the S&P 500 drifted lower all day to hit its intra-day low between 3:30 to 4:00 PM. Once again, it was poor action, which usually precedes a sell-off of sorts.
The long bond led the enthusiasm on Friday, getting close to a 6% yield. Technology fever continued, with the Internets continuing their momentum phase.
Volume was big again at just over 1 billion, and the 21,978 blocks of 10,000 or more shares was the most all week.
Any early overreaction to the downside today will offer the opportunity for Trap Doors and Opening Reversals The S&P futures were off 16 to 17 points early this morning, and are now down around 12 (at 8:30 AM), I guess on the excuse of Microsoft. Any early overreaction to the downside today will offer the opportunity for Trap Doors and Opening Reversals for quick counter-trades.
Expect more volatility this week, with Mr. G taking center stage, and the probability of some retracement of the 14-day rally we have just had. I doubt Microsoft will get out of here on the downside, as the institutions will come in on any severe reaction; also, there are many analysts who think Microsoft is worth a lot more dead than alive, so it should be very interesting.
Program Trading NumbersBuySellFair Value7.505.006.20Pattern Setups  Cisco [CSCO>CSCO], Merck [MRK>MRK], Nextlink [NXLK>NXLK], Voicestream Wireless [VSTR>VSTR], ADC Telecommunications [ADCT>ADCT], going through Thursday’s high, Computer Sciences [CSC>CSC], STMicroelectronics [STM>STM], Nextel [NXTL>NXTL], if they want to take it to new highs (they seem to love to run this stock), and Vitesse Semiconductor [VTSS>VTSS].
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