No Surprises

  • June 19, 2000
  • Kevin Haggerty







“…
the institutions don’t hang too long with any kind of cyclical stocks in
the Dow right now.”

The first thing I
did when I got back was check
the Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating), which ended up +27 points on the week or 0.7%, the SPX
I see did nothing, as it traded from 1457-1464 range, -7 points or 0.5%, and the
Dow, I guess, was the dog of the week, declining 165 points or 1.5%. But that’s
not a surprise. We’re in a tech environment and the institutions don’t hang too
long with any kind of cyclical stocks in the Dow right now. They can’t get the
performance. I also take a look at
the consolidation. The QQQs are still trading in that 90-95 base, which is an excellent narrow-range pattern. I see that EMC
(
EMC |
Quote |
Chart |
News |
PowerRating) and Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) broke out of their
consolidations. I also see the S&P 500 stuck in the 1480-1445 consolidation.
So, having said that, and based on what I’ve seen so far in the NDX last week,
the next move is probably going to be out of that consolidation to the upside,
barring any overt news.

Program
Trading Numbers

(September Futures)

Fair
Value

Buy

Sell

22.30

23.60

21.10

Pattern Setups  

We have found some interesting stocks
for this week. Stocks that look good, that set up, are: National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating), Veritas Software
(
VRTS |
Quote |
Chart |
News |
PowerRating),
BEA
(
BEAS |
Quote |
Chart |
News |
PowerRating) (above Thursday’s high of 45 1/2), JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating)
(above Thursday’s high of 121 13/16), Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating), Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) (above Thursday’s high of 82 5/8), Sun Micro
(
SUNW |
Quote |
Chart |
News |
PowerRating) (above
Thursday’s high of 92 1/2) and Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) (which looks like it will want to
take to new highs above 60). Also Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) and Sycamore
Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating) — this could be a very explosive stock right here — and
also Comverse
(
CMVT |
Quote |
Chart |
News |
PowerRating). 

I see in the drugs, they took Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) and Warner-Lambert
(
WLA |
Quote |
Chart |
News |
PowerRating) out of their consolidations to new highs
as these drugs back and fill, based on how the techs do. But any kind of
pullbacks in these drugs, I’m sure they’ll be add-to positions and I’m sure
they’ll be good candidates. 

Taking a look at some of the
bottom-fishing names we’ve had, of course JC Penney
(
JCP |
Quote |
Chart |
News |
PowerRating) is now
consolidating at much higher levels, and I see Staples
(
SPLS |
Quote |
Chart |
News |
PowerRating) is now up 27%
where we had it in the bottom-fishing area. These are stocks that don’t come along every day, but you can clearly see the Generals come into these stocks and when they do, they’re good opportunities.

Have a good trading day.