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Technology Stocks : Compaq

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To: Night Writer who wrote (47776)2/12/1999 11:00:00 AM
From: Kenya AA  Read Replies (1) of 97611
 
NW: Pisani was going over the carnage in the boxmakers due to DELL. He said that although they were down big today, GTW and HWP still look good. Then he said that AAPL had fallen below its 50-day MA, a bad sign and that CPQ did as well, and both have been looking technically weak.

My read - both AAPL and CPQ fell below the 50-day MA a few days ago, but both closed above it yesterday on a snapback (shock treatment theory). Both stocks' RS improved dramatically with that move. I think CPQ (don't know about AAPL - they had bad news with that charge they're taking) will ride up along the 50-day MA. Important to remember that CPQ has EXCELLENT support at 42 which, IMO, is a stronger influence than 50-day MA.

K
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