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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (646)	10/4/1999 3:34:00 PM
From: Ms. X	Read Replies (4) \| Respond to of 9427

From DWA's Market Report. September 28th, 1999 I wanted to post this since it is an excellent report on the interest rate front. The DJBB and all of the facets that we look into towards the future of bonds. AN UPDATE ON THE BOND MARKET We mentioned in yesterday's report that we would have an update on the bond indicators for you today. We gave you a glimpse into what was happening with our brief comments on Monday, but today wanted to expound on those and wanted to show you an updated chart on the futures contract and the TYX. We have started to see the first signs of hope with respect to a potential bottom in bonds. Let's take a look at why we say that. The T-Bonds December futures contract has given two consecutive buy signals off the bottom after falling to a recent low of 112 1-2. The most recent buy signal was a double top breakout at 114 1-2, and this followed the first upside breakout at 114 1-4. Very good support has formed in the 112 1-2 to 113 1-4 area. There is room for bonds to trade up off the bottom before the bearish resistance line is met at 117 3-4. T-Bonds December futures contract has positive momentum on both a daily and weekly basis; the longer term monthly momentum has been negative for nine months and is now getting less and less negative. A change is not far off, and such a change to positive monthly momentum would suggest higher prices for bonds. The bullish price objective for T-Bonds December, based on the move off the bottom, is 119 1-4. The 30 Year Yield Index (TYX) has broken down. On the shorter term (.25 per box) chart the TYX has given a notable sell signal. It did so on Friday when it broke a triple bottom at 60.00 (or 6%). Along with the triple bottom sell signal, the TYX also violated its bullish support line that dated back to December of last year when rates were around 4.9%. This breakdown comes after forming initial resistance at 61.25, below the August high of 62.50. There is some support at 58.75 then not till 57.50. The daily and weekly momentum's are negative for the TYX; and the longer term monthly momentum has been positive for nine months, but it getting less and less positive. It would turn negative at 56.78. The initial bearish price objective for the TYX, after topping out at 62.50, was 55.00. A newer, incomplete count yields 57.75. The longer term TYX chart (.50 per box) is still in an uptrend. It would give a significant sell signal at 58.50 and would test its uptrend line at 56.50. The NYSE Bond High-Low Index has reversed up from a low, low level of 4% to give a buy signal. This is another short term positive. The DJBB still remains on a sell signal and it would take a move to 100.20 to give a low pole warning, and a move to 100.80 to break a previous top. This is our main longer term bond indicator. As long as it stays on a sell signal, we remain (overall) bearish on bonds. As laid out above, there are some short term positives that have occurred in the bond market. So we may well be making a bottom in bonds, after almost a year long slide. So for those more intrepid in nature, you may choose to scale into some bond positions. Those that do so could consider playing either the T-Bonds December futures long; or by shorting the TYX. We, though, would ideally like to wait for at least a low pole warning in the DJBB before doing so. We will keep you posted to any further changes. T-Bond December - USZ9 Trend Chart * 120.75 O * 120.50 O * 120.25 O * 120.00--O--------------------------------------------------------------------- 119.75 O 119.50 O * 119.25 O * 119.00 5 * 118.75--O-----------------------------------------------------------------Top- 118.50 O X 118.25 O X O * 118.00 O X O X * 117.75 O X O X O * Bearish resistance 117.50--O-X-O-X-O------------------------------------------------line is well - 117.25 O O X O above at 117 3-4 117.00 O X O X X 116.75 O X O X O X O 116.50 O X 6 X O X O 116.25------O-X-O-------------X-O-X-O---------X-------------------------------- 116.00 O O X O O X O 115.75 O X O X O 115.50 O X X X O X X O X 115.25 O X O X O X X O X O X O X 115.00----------O-X-O-X-O-X-O-X-----O-X-O-X---X-O-------------X---------------- 114.75 O X O X 7 X O X O O X O X O X Med 114.50 O X O X O O X O X O X O X X -Has given a 114.25 O X O X O O X O X O X O X X second buy 114.00 O X O X 8 O X O X O X X O X signal off the 113.75----------O-X-O-X---------------------O-X-O-X-O-X-O-X-O-X---bottom ------ 113.50 O X O X O X 9 X O X O X O X 113.25 O O X O X O X O O X O Has formed 113.00 O O X O O X good support in 112.75 O O X 112 1-2 to 113 1-4 112.50--------------------------------------------------O----- range. --------- 30-YR Yield Index - TYX Trend Chart (.25 per box) 62.50 ------------------------------------X------------------------------------ 62.25 X O 62.00 X O 61.75 X X X O 61.50 X O X O X O 61.25 ----------------X---X-O---------8-O-X-O-----X-------X-------------------- 61.00 X O X O X O X O X X O X X O 60.75 X O X O X X X O X O X O X O X O X O 60.50 X O X O 7 O X O X O X O X O X O X O X O Med 60.25 X O X O X O X O X O O X 9 X O O * O 60.00 ----------------X-O-X-O-X-O---O-X-----O-X-O----------O Broke a triple 59.75 X O X O O X O X O bottom and violated 59.50 X O O X O X * O the bullish 59.25 X X O X O X * support line. 59.00 X O X O X O X * 58.75 --------X---X-O-6-------------O-------O--------------------------------- 58.50 X O X O X 58.25 X O X O X * 58.00 X X O X O X * 57.75 X O X O X O X * 57.50 ----X-O-X-O---O--------------------------------------------------------- 57.25 X O 57.00 X * 56.75 X * Bot 56.50 X * 56.25 ----X------------------------------------------------------------------- 56.00 O X 55.75 O 5 * 55.50 O X * 55.25 O X * 55.00 --O--------------------------------------------------------------------- USZ9 MONTHLY MOMENTUM Date Top Bottom Last Cross ================================================== Sep-99 0.00000 -0.00994 113.812 117.356 -Getting less and less negative and Aug-99 0.00000 -0.01378 113.812 118.759 will turn to positive at 117.356 Jul-99 0.00000 -0.02230 114.500 122.663 Jun-99 0.00000 -0.04082 115.031 130.545 May-99 0.00000 -0.04486 115.593 132.810 Apr-99 0.00000 -0.04381 119.250 136.209 Mar-99 0.00000 -0.04143 118.906 134.783 Feb-99 0.00000 -0.04356 119.125 136.019 Jan-99 0.00000 -0.00806 125.156 128.166 -Turned over to negative in January Dec-98 0.00804 0.00000 126.093 123.148 suggesting lower prices. Nov-98 0.01739 0.00000 128.468 122.134 Oct-98 0.02207 0.00000 125.312 117.383 Sep-98 0.03877 0.00000 130.656 116.873 Aug-98 0.02180 0.00000 125.187 117.440 Jul-98 0.01538 0.00000 121.937 116.490 Jun-98 0.00849 0.00000 122.125 119.083 May-98 0.00244 0.00000 120.531 119.656 TYX MONTHLY MOMENTUM Date Top Bottom Last Cross ================================================== Sep-99 0.02387 0.00000 60.820 56.780 -Getting less and less positive and Aug-99 0.03529 0.00000 60.820 54.925 will turn over to negative at 56.78 Jul-99 0.05828 0.00000 61.190 51.771 Jun-99 0.09577 0.00000 60.130 45.638 May-99 0.09833 0.00000 59.360 44.625 Apr-99 0.09131 0.00000 56.600 43.013 Mar-99 0.08465 0.00000 56.730 43.942 Feb-99 0.08127 0.00000 56.570 44.403 Jan-99 0.01061 0.00000 51.810 50.103 -Turned to positive in January, Dec-98 0.00000 -0.01498 51.470 53.979 suggesting higher rates. Nov-98 0.00000 -0.02418 50.520 54.596 Oct-98 0.00000 -0.03166 52.250 57.711 Sep-98 0.00000 -0.04901 48.910 57.497 Aug-98 0.00000 -0.01659 53.300 56.201 Jul-98 0.00000 -0.00038 56.580 56.647 Top of Report UPDATE ON THE DOW UTILITIES We have not focused a great deal of attention on the Dow Jones Utility Average though it is an index which we follow. For those of you who have our charting system, you can find this chart under the ticker symbol of UTIL. Elsewhere in today's report is an update on the 30 Year Yield Index (TYX) which has recently broken down. Keep in mind that this indicator moves inversely when compared to bonds. As rates decline, bonds rise in price and vice versa. In other words, should the TYX continue to move down, it would suggest higher prices for bonds and in such a case we should see the Dow 20 Bond Average move up and give a buy signal. Having said that, we want to reiterate that so far the 20 Bond Average has not given a buy signal and at this time we remain bearish on bonds. We will mention though that the Bond High-Low Index recently reversed up from below the 10% level and we have not seen a reversal from such a low reading since 1994. In 1994 and into early 1995 we actually saw three such reversals - in June 1994, July 1994 and in January 1995 - with the first two proving to be false or early. We should point out that the 20 Bond Average, after having been on a sell signal since November 1993, finally broke out in the middle of January of 1995 and embarked on a strong rally into July of the same year. So we would rather wait for a buy signal from the 20 Bond Average before getting too aggressive here with bonds. The Utility Average has been called a surrogate for interest rates for some time. We don't know if that will continue with the deregulation of much of the utility industry. However, that is more a fundamental story any way. At any rate, we wanted to take a look at this index after the sell signal in the TYX and the upside breakout in bond futures. A look at the chart below will show very weak action in the Dow Utility Index since hitting its high in June at 336. Since then we have seen three sell signals in the index with the latest coming at 308. That breakdown also led to a violation of the bullish support line when the Utility Average fell to 304. We have since seen a drop in this index down to 294, a decline of 12.5% from the chart high. However, notice that this index is now entering an area where it has bottomed previously. In other words, it is entering a support area. The 288-292 area is where the UTIL bottomed in February, March and April of this year. This could be a positive so long as the UTIL does not violate that support level. A move to 286 would take the Utility Index to new yearly lows which would be a negative. We would like to see this index try to build a base from which to rally and also to set up a buy signal here at a lower price. Right now, the UTIL would have to rally to 326 to break a double top. If it can rally to 300, pull back to 294 or thereabouts, then a rally to 302 would break a double top. We don't know if this will occur, but it will be worth watching. The point we are trying to make is that we have seen a couple of positives in the interest rate arena. Our main indicator, the 20 Bond Average, has not yet given a buy signal and we will watch for that rather than anticipate a buy signal. But that will be a close watch with the decline in the TYX (remember, it moves conversely), the breakout in bond futures and the move back to support by the Dow Utility Average. You can see the chart of the Dow Utilities below. Dow Jones Utility Average Chart 340 ----------------+------------------------------------------------ 338 \| 336 \| X * Top 334 \| X O * 332 \| X O * 330 ----------------+---------------------------X---X-O------------- 328 \| X O X O 326 \| X O X O 324 \| X 6 O X 322 \| X O X X O 320 --O-------------\|---------------------------X-----O-X-O-X-O------ 318 O \| X O X O X O 316 O X \| X 7 O X O Med 314 O X O X 5 O X 9 312 O X O X X O X 8 X O 310 --O-X-O-----X-O-C-O-------------------------X---------O---O------ 308 O X O X O X 1 X X O 306 O X O X O X O X O X X O 304 O X O X B O \| O X O X O X * O 302 O X O X O X \| O O X X O X * O 300 --O---O-X-O-X---\|-----O-X---X-O-X-O-----X---X------------O------ 298 O O \| 2 X O X O X O 4 X O X O 296 \| O X O X O O X O X O X * O 294 \| O X O X O X O X O X * O Bot 292 \| O X O X O O O * 290 ----------------\|-----O-X-3---------------*---------------------- 288 \| O 286 \| 284 \| 282 \| 280 ----------------\|------------------------------------------------ 9\|9 8\|9

To: OX who wrote (646)	10/4/1999 10:18:00 PM
From: Ms. X	Respond to of 9427

Part Three of the DWA Market Analysis Report: The-Trader's-Corner Trader's Corner Ideas This section of the report is designed to provide the "trader" with timely, actionable trading ideas on a regular basis. It is meant primarily for the more aggressive traders, yet there are times when the idea will be acceptable for traders and investors alike. For those who subscribe to the database, you can view the charts of all the stocks on the Trader's Corner in one file under the Reports, Charts, Trader's Corner function. At times the recommendations in this section may differ slightly from what you see in the other parts of the report; this is because in many cases the reasons for owning the stock and what the objectives are will differ for a short term trader versus the investor. This section is designed for those wanting to pick up dimes in front of a bulldozer. Be sure to remember that this page is for traders. Date Entry Last Sell Posture/ Stock Symbol Bot Price Price Tgt/PO Stop Comments Nucor NUE 07/09 49 11-16 45 13-16 Lo 60s 44 Sold half Lucent LU 08/16 65 13-16 63 1-4 79 62 Ericsson LM ERICY 08/23 33 3-8 31 -- 29 Lexmark LXK 08/25 75 15-16 82 1-2 105 81 Sold half Oracle Systems ORCL 09/07 41 1-2 43 5-16 Lo 50's 41 Sold half JDS Uniphase JDSU 09/07 113 1-4 115 15-16 -- 102 Unisys UIS 09/13 45 5-8 44 5-16 51 41 Sold half Adlac Comm ADLAC 09/28 59 7-8 58 1-2 69 56 Legend: ** = New Addition R = Removed # = Acceptable play for traders & investors * = Still Actionable at current levels s = Short position Mkt = At the Market PB = Pullback B/E = Breakeven PO = Price Obj Comments: No new additions today. Oracle Systems (ORCL): Raise stop point for short term traders to 41. Lucent (LU): Hold current positions with a stop of 62. JDS Uniphase (JDSU): Ran up to 121 then backed off toward the end of the day. We will look to sell half of our short term trading position at 121 should it get up there again. Top of ReportStatistically Significant Technical Breakouts Double Tops New Signals Multiple Signals AMTD 19-1/2 ADAC 9-1/2 ATHM 42 ASML 68 BHW 37 BEL 68 CAO 21 CA 59 CPTH 39 CUBE 45 DRTE 44 JMED 32 DTPI 44 LCOS 50 ETYS 65 MSTR 48 GIBG 5-1/2 NATI 35 ICIX 21 NVDM 15 KLAC 71 PAIR 14 LRCX 65 SPGLA 10-1/2 LSI 57 SUNW 95 MERQ 62 SYMC 36 MGCX 19 TAN 52 MMC 69 TDS 89 NITE 32 USWB 33 NTPA 37 VOD 236 OXGN 11 VRTY 66 PMCS 96 PROX 48 PSUN 29 RESM 29 RT 23 SDLI 83 SII 44 SIII 11-1/2 SMTC 39 TGLO 14-1/2 VICR 21 WINK 41 XLNX 69 Triple Tops New Signals Multiple Signals CINR 30 AMZN 69 GSNX 18 IMAL 18 SLVN 19-1/2 JDSU 118 NVLS 70 TSFW 27 Double Bottoms New Signals Multiple Signals ANF 34 ANCR 21 IMIC 2-1/4 BSC 38 KSWS 31 CGR 4 LU 63 CLTR 14-1/2 PSCX 7-1/2 COL 21 WWWX 3-1/2 DFS 24 EL 39 ESRX 75 FFD 11-1/2 FLO 14 LOD 3-3/4 LVCI 14-1/2 LVLT 52 MU 74 NCE 32 PCTL 3-3/4 SAWS 31 SKY 26 TCO 11 TRMS 16-1/2 UCOMA 75 Triple Bottoms New Signals Multiple Signals CORR 19-1/2 CL 46 DIIG 34 CTXS 60 MAT 21 WH 15 [ADAC] Adac Laboratories ($9.875) broke a double top at $9.50. This completes a bullish catapult formation and follows a higher bottom made at 7 1-2. Trying to make a definitive bottom after a year-long sell off. Ok to bottom fish here for more aggressive traders as there is room to trade up to 15 before the trend line is met. [AMTD] Ameritrade Holding Corp-Cl A ($19.125) broke a double top at $19.50. Trend and relative strength are still negative despite this breakout. Stock has resistance in the lower 20'S. Others look better right now. [AMZN] Amazon.Com Inc. ($80.500) broke a spread triple top at $69.00. Stock up strong today and it now lies at the top of its ten week trading band. Need to see a pullback or some sort of consolidation before initiating new positions. [ANCR] Ancor Communications ($20.000) broke a double bottom at $21.00. Third consecutive sell signal here though the stock remains above its uptrend line. Would stay away from ANCR for now and hedge if still long. Stock has been performing worse than the overall market. [ASML] Asm Lithograpghy HLDG NV ($68.563) broke a double top at $68.00. This break completes a bullish triangle as the trend and RS remain positive. Okay to play here. [ATHM] Excite@Home Corp ($43.438) broke a double top at $42.00. While the stock is back on a buy signal the RS and trend remain negative. No new positions here. [BEL] Bell Atlantic Corp ($65.750) broke a double top at $68.00. This break completes a bullish catapult as the trend remains positive. The RS is in a column of X's. Okay to play here. [BHW] Bell & Howell Co ($36.688) broke a double top at $37.00. Bouncing off its bullish support line. However, relative strength is bearish so this is only for traders. 31 breaks a triple bottom and also violates the uptrend line so use that as the stop. Would look to enter in the 35 area. [BSC] Bear Stearns Companies, Inc. ($38.375) broke a double bottom at $38.00. Completes a bearish catapult formation as well. Trend and relative strength are bearish and would avoid BSC here. [CA] Computer Associates Intl Inc ($58.750) broke a double top at $59.00. Good support is formed in the 55 area and we could now see a test of old highs. RS and trend are positive. Okay to play here. [CAO] CSK Auto Corp. ($22.875) broke a double top at $21.00. First buy signal off the bottom and puts the stock just below the bearish resistance line. Would take a move to 24 to get through it, and we would wait for that to occur before considering buying. RS is negative. [CINR] Cinar Films Inc ($29.625) broke a triple top at $30.00. Trend is now positive as CINR breaks through strong resistance. Daily momentum just turned positive and RS will likely reverse up to X's this week. Okay to buy CINR with the optimum buy point being a pullback to the 27 area. On the downside, 22 is a double bottom while it would take a move to 19.5 to break a spread quadruple bottom and violate all near term support. [CL] Colgate Palmolive Co ($46.063) broke a spread triple bottom at $46.00. This hits our stop point on the Best page as it also violates the bullish support line. For those still long we would look to exit or hedge CL, especially on a bounce back up. [CLTR] Coulter Pharmaceutical Inc. ($12.750) broke a double bottom at $14.50. Yet another sell signal and follows a lower top. New low and takes out the September 1998 low. Trend is negative and RS is in O's. Avoid. [COL] Columbia/Hca Healthcare Corp ($20.563) broke a double bottom at $21.00. Third straight sell signal and follows another lower top. Also violates the bullish support line. RS is negative. Take signal if long, otherwise avoid. [CORR] Cor Therapeutics Inc ($19.813) broke a triple bottom at $19.50. Topped out at 27 recently after a strong run up. This breakdown takes the stock through all near term support and from here could see a test of the uptrend line at 15 1-2. Those long should lighten up or hedge here. RS is in X's. [CPTH] Critical Path, Inc. ($41.375) broke a double top at $39.00. Stock is now back on a buy signal as the trend and RS remain negative. Would limit plays to traders only on a pullback to the 38 area. [CTXS] Citrix Systems Inc ($58.563) broke a spread triple bottom at $60.00. This break follows a lower top and violates a strong area support. Can lighten up here. A move to 56 will violate the uptrend line. [CUBE] C Cube Microsystems Inc ($43.906) broke a double top at $45.00. Third consecutive buy signal here and a new high as well. Trend and relative strength are positive. Would wait for pullbacks to the mid to upper 30's to buy. 30 would violate the uptrend line and would be the stop loss. [DFS] Department 56 Inc ($23.875) broke a double bottom at $24.00. Trend and RS remain negative. Avoid. [DIIG] Dii Group Inc ($33.250) broke a triple bottom at $34.00. Stock has been working sideways for a couple of months with resistance around 38-39 and support in the 33-35 range. Still in an uptrend with the RS chart in X's. Those long can give this one a little room here. A move to 32 would break a spread triple bottom and below that the bullish support line lies at 29. [DTPI] Diamond Tech Partners Inc ($43.250) broke a double top at $44.00. Stock bounced back after breaking a spread triple bottom the other day. On the downside, a move to 38 would now break a double bottom while a rally to 50 would take DTPI to new highs. Buyers here use a stop or hedge point of 38. [EL] Estee Lauder Companies ($40.438) broke a double bottom at $39.00. Stock now lies just above its uptrend line with RS in a column of O's. If still long can give this one room to 36, a violation of the bullish support line. [ESRX] Express Scripts Inc ($75.875) broke a double bottom at $75.00. Third straight sell signal as bearish signal has formed. This breakdown also brings a violation of the bullish support line. Those still long should sell or hedge here. RS is still positive. [ETYS] eToys Inc. ($65.875) broke a double top at $65.00. This break follows a higher bottom as the trend and RS remain positive. Look to play on a pullback. [FLO] Flowers Industries Inc ($14.500) broke a double bottom at $14.00. New low for this stock as negative trend continues. RS is negative too. Continue to avoid. Next support is around 13 1-2. [GSNX] Gasonics International Corp ($17.938) broke a triple top at $18.00. This break completes a shakeout pattern with RS in a column of X's. Okay to play here. [ICIX] Intermedia Communications of Florida ($21.000) broke a double top at $21.00. First buy signal off the bottom and good support is formed in the 18.5 area. Okay for bottom fishers with a stop loss of 18, a triple bottom break. [JDSU] JDS Uniphase Corporation ($115.938) broke a spread triple top at $118.00. Good support is formed in the 106 area as the trend and RS remain positive. Look to play on a pullback to the 110 area. [JMED] Jones Medical Inds Inc ($31.438) broke a double top at $32.00. New high for this stock and comes after forming initial support at 24. Trend is positive and RS is in X's. OK to buy JMED but would prefer to get in on a pullback to the high 20'S. First initial stop is 23. [KLAC] Kla-Tencor Corp ($69.375) broke a double top at $71.00. This break reverses a series of lower top and changes the trend back to positive. Okay to play here. [KSWS] K Swiss Inc ($30.750) broke a double bottom at $31.00. Stock now ready to test its recent lows and a move to 28 would violate the August lows. Trend is negative here and would hold off for now. [LCOS] Lycos Inc ($50.375) broke a double top at $50.00. Third consecutive buy signal and this break follows a higher bottom. RS is in a column of X's. Okay to play here. [LSI] Lsi Logic Corp ($56.500) broke a double top at $57.00. Stock back on a buy signal and follows a higher bottom. RS is positive as is the trend. Okay to play here. [LVCI] Laser Vision Centers Inc ($14.563) broke a double bottom at $14.50. Yet another sell signal and follows a lower top made at 19. Trend is negative and RS is in O's. Avoid. [LVLT] Level 3 Communications Inc ($52.375) broke a double bottom at $52.00. This break completes a bearish catapult as the trend remains negative. If long can move to the sidelines. [MAT] Mattel Inc ($20.313) broke a spread triple bottom at $21.00. Stock has now gone through last support at 22 after making lower highs and lows. RS and momentums are also negative. Continue to avoid. [MERQ] Mercury Interactive Corp ($62.500) broke a double top at $62.00. Rallied to 65 to test its previous highs. Extended right now and those looking to buy should wait for pullbacks to initiate positions. [MMC] Marsh & McLennan Cos Inc ($68.125) broke a double top at $69.00. This breakout comes from below the bearish resistance line and the RS chart is still in O's. Too many things still stacked against this one. Sidelines for now. [MU] Micron Technology Inc ($72.125) broke a double bottom at $74.00. This break also violates a spread triple bottom taking the stock through all near term support. Can lighten up here or take some other type of defensive action. [NATI] National Instruments Corp. ($34.063) broke a double top at $35.00. 4TH straight buy signal and a new high as well. Would wait for pullbacks in NATI to initiate new long positions. 25 would violate June low and would use that as the stop loss. [NCE] New Century Energies ($32.438) broke a double bottom at $32.00. Series of lower tops and lower bottoms persists, with this marking a new low. Trend is negative as is RS; we would continue to avoid. [NITE] Knight/Trimark Group, Inc. ($31.000) broke a double top at $32.00. Trend and relative strength are negative. Hold off for now. [NTPA] Netopia Inc ($40.000) broke a double top at $37.00. Stock back on a buy signal and is now testing old highs. RS is positive and this break follows a higher bottom. Look to play on a pullback. [NVDM] Novadigm Incorporated ($14.750) broke a double top at $15.00. This break takes the stock to new highs. Traders can buy with a stop loss of 12 1-2 which breaks a double bottom. [NVLS] Novellus Systems Inc ($67.625) broke a triple top at $70.00. Third consecutive buy signal with good support formed in the 62-63 area. Okay to play here adding on any dips. [OXGN] Oxigene Inc ($10.875) broke a double top at $11.00. Was able to find support at 8 1-2. But still has considerable resistance in the low teens and RS is negative. Others look better here. [PAIR] Pairgain Technologies Inc ($13.500) broke a double top at $14.00. Second consecutive buy signal and follows a higher bottom. RS vs DWA is in a column of X's. Okay to initiate partial positions here and add on any pullback. [PMCS] PMC Sierra Inc. ($94.375) broke a double top at $96.00. Stock back on a buy signal and follows a higher bottom. RS and trend are positive. Okay to play here. [PROX] Proxim Inc ($49.125) broke a double top at $48.00. First buy signal off the bottom after falling to a low of 39. Still has plenty of resistance in the mid 50's then the old high is 61. Trend is still negative and RS chart is in O's. Others look better here. [RESM] Resmed Inc ($30.625) broke a double top at $29.00. Was able to find support in the 24-25 area, but is now right up against the bearish resistance line, and has plenty of overhead resistance in the mid 30'S. Others look better here. [SAWS] Sawtek ($31.000) broke a double bottom at $31.00. Has again run into strong resistance in the mid 30'S. Still has some decent support in 29-30 area, then below that the bullish support line lies at 27. RS is positive. Those long can give this one a little room and use 26 as the worst case stop. [SII] Smith International Inc ($42.813) broke a double top at $44.00. Stock back on a buy signal with good support formed in the 40 area. RS remains positive. Can trade this one here. [SIII] S3 Inc ($11.313) broke a double top at $11.50. Above its uptrend line but relative strength is bearish. A move to 13 would take the stock to new yearly highs. A move to 8 would violate the uptrend line and would be the stop loss here. [SLVN] Sylvan Learning Systems Inc ($18.625) broke a triple top at $19.50. RS is negative and the stock now lies just below its downtrend line. RS is negative. No new positions here. [SMTC] Semtech Corp ($38.313) broke a double top at $39.00. Stock now back on a buy signal and this break follows a higher bottom. Could now see a test of old highs. Okay to play here. [SUNW] Sun Microsystems Inc ($91.563) broke a double top at $95.00. 4TH successive buy signal here and it takes SUNW to new highs. Wait for pullbacks to the upper 80's to buy this one. A move to 74 would violate the uptrend line. [SYMC] Symantec Corp ($35.125) broke a double top at $36.00. Good support is formed in the 32 area and could now see a test of old highs. Trend and RS are positive. Okay to play here with a stop/hedge point of 31, a triple bottom break. [TAN] Tandy Corp ($50.875) broke a double top at $52.00. Completes a bullish triangle as well. Trend and relative strength are positive here. A move to 57 would be new highs. Traders can buy here. 46 would break a double bottom and traders use that as the stop loss. [TGLO] Theglobe.Com Inc ($14.125) broke a double top at $14.50. First buy signal off the bottom though the RS and trend remain negative. No new positions here. Trimeris Inc. ($16.625) broke a double bottom at $16.50. Second straight sell signal and aborts a shakeout pattern. Also violates the bullish support line on this breakdown. Those long should lighten up or hedge positions here. [TSFW] Tsi International Software LTD ($26.813) broke a triple top at $27.00. Trend is positive as is the RS. Good support is formed in the 23 area. Okay to play here with a stop/hedge point of 22, a triple bottom break. [VICR] Vicor Corp ($20.875) broke a double top at $21.00. Steady uptrend persists as good support has formed in the 18 1-2 area. The overall trend is positive and the RS chart is in X's. Ok to buy here and use 18 as the stop point as that would violate the long term bullish support line. [VOD] Vodafone Air Touch Public Limited Co. ($234.188) broke a double top at $236.00. Second consecutive buy signal and follows a higher bottom. This break marks a new chart high. Okay to trade here with the first sign of trouble coming at 222, a double bottom break. [VRTY] Verity Inc ($65.500) broke a double top at $66.00. This break marks a new chart high and follows a higher bottom. RS and trend are positive. Look to catch this one on a pullback to the 63 area. [WH] Whitman Corp ($14.875) broke a spread quadruple bottom at $15.00. This follows a double bottom at 15 1-2 and now puts it back down to where it bottomed this time last year. A move to 14 1-2 would take this stock through all good near term support and if long we would use that as your stop point. Avoid otherwise. [WINK] Wink Communications, Inc. ($42.250) broke a double top at $41.00. First buy signal off the bottom with good support in the 35 area. RS is positive. Okay to bottom fish here. [WWWX] Worldwide Web Networx Corporation ($3.625) broke a double bottom at $3.50. Stock unable to move through the downtrend and is now back on a sell signal. Continue to avoid. [XLNX] Xilinx Inc ($66.875) broke a double top at $69.00. Stock back on a buy siganl and follows a higher bottom. Need to see this one move through its downtrend line before initiating new positions. RS is positive. [ANF] Abercrombie & Fitch Co. CL A ($34.375) broke a double bottom at $34.00. Stock once again is unable to move through its downtrend line. RS is negative and a move to 32 will break a spread triple bottom. [DRTE] Dendrite International Inc ($8.500) broke a double top at $44.00. Stock able to hold its uptrend line for the second time. RS is positive. Okay to play here. A move to 37 will break a spread triple bottom. [LU] Lucent Technologies Inc ($63.250) broke a double bottom at $63.00. While this break violates the uptrend line the RS is positive and the stock now lies at an area of support. A move to 62, will break a spread triple bottom. [SDLI] SDL Inc ($82.250) broke a double top at $83.00. Stock back on a buy signal with good support in the 75 area. Look to play on a pullback to the 78 area. A move to 74 will break a triple bottom. Telephone & Data Systems Inc ($88.500) broke a double top at $89.00. Third consecutive buy signal and follows a higher bottom. This break marks a new chart high and the stock is now trading at the top of its ten week trading band. Okay to trade here. A move to 82 will break a spread double bottom. [USWB] US Web ($33.375) broke a double top at $33.00. Stock has made a nice recovery after finding a bottom at 17 back in August. RS is now positive as is the trend with good support formed in the 29 area. Okay to play here. A move to 28 will break a triple bottom.