Monday’s Names On The Radar Screen

• November 2, 2001
• TradingMarkets Editors

Unemployment soared to a five-year high, but the Dow
(
$INDU |
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PowerRating) and S&P 500
(
$SPX |
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PowerRating) managed to close up modestly for the
day, while the Nasdaq
(
$COMPQ |
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PowerRating) was off slightly. Microsoft’s
(
MSFT |
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PowerRating)
announcement of their settlement with the DOJ did help out the market today, but
Microsoft closed slightly lower. Today the VIX
(
$VIX.X |
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PowerRating) opened near the top of its range and closed
near the lows. This intraday shift in sentiment suggests that fear is continuing
to subside as investors are already looking for another interest rate cut next
week. Today the VIX did cross below its 10-day moving average, but did not
trigger any CVR Signals. The VXN
(
$VXN.X |
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PowerRating) showed somewhat similar behavior
but it opened and closed in the bottom half of today’s range. This intraday shift in sentiment also suggests that
fear is continuing to subside. The VXN did not trigger any CVR signals for
today either. Both volatility indices are somewhat neutral and are not showing
any biases. Next week we have earnings from Cisco Systems
(
CSCO |
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PowerRating) on
Monday, as well as the FED meeting on Tuesday.

Points of Significance:

Computer Sciences
(
CSC |
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PowerRating) jumped 18% higher
after the company reported earnings that were in line with analysts’ estimates, but it
was their upbeat forecast that sparked today’s rally. Options volume was heavy,
as it traded over 13 times its average daily contract volume. QLT
PhotoTherapeutics
(
QLTI |
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PowerRating) broke down from a descending triangle today on
eight times its average daily volume. Options activity was heavy as it
traded three times its average contract volume. THQ Inc.
(
THQI |
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News |
PowerRating) broke out
of a short term base and also broke above its 200-day moving average on double
its average daily volume today. Contract volume was heavy as it traded
over two and a half times its average daily contract volume. Hot Topic
(
HOTT |
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PowerRating)
traded lower on four times its average daily volume today after meeting
resistance at its 20-day moving average. Hot Topic is also forming a head and
shoulders top formation. Option volume was heavy as it traded over five times
its average daily contract volume. GIGNA
(
CI |
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PowerRating) gapped up on over triple its
average daily volume, but met resistance at its 20-day moving average. CIGNA’s
implied volatility is also at a new high. Eastman Kodak
(
EK |
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Chart |
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PowerRating) appears to be
headed for new lows. Its implied volatility is at a new high.

Abnormal Options Volume With Price Movement

– Abnormal options volume (calls and puts) with stock price movement

Stocks With Biggest Spikes in Implied
Volatility – Stocks with biggest increases or decreases in implied
volatility compared to previous day.

Spike Up

Spike Down

Please use stops on every trade!