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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (33015)	9/13/2000 5:23:28 AM
From: Condor	Read Replies (1) \| Respond to of 50167

Hi Ike: I thought this was interesting >>>> Tech caution: General Commentary There are a number of factors behind the group's retreat off its August high - most of which we have touched on numerous times in recent days... So we won't spend time today talking about the why... Instead will focus on the what, as in what investors are selling... Cisco (CSCO), Microsoft (MSFT), Yahoo! (YHOO), Intel (INTC), Micron Tech (MU), JDS/Uniphase (JDSU), Sun Microsystems (SUNW), Hewlett-Packard (HWP), Lucent (LU), Nortel Networks (NT), Ciena (CIEN), Oracle (ORCL), Corning (GLW), Brocade (BRCD), Broadcom (BRCM), PMC-Sierra (PMCS), Ariba (ARBA), Applied Materials (AMAT) and KLA-Tencor (KLAC)... These are just some of the category leaders that have been whacked in the past several sessions. Why is this important? Several reasons. First, shows that investors are beginning to question the excessive valuations assigned these stocks due the murky economic outlook. Second, if tech investors don't feel safe owning these leadership names, they may become increasingly uncomfortable with the sector overall... This hasn't happened so far, as money has simply rotated into many of the second and third tier names possessing positive growth stories... But most of the big names haven't seriously broken down either... That could change soon, however... Perhaps the biggest tech name - Cisco - is flirting with key support in the 58 area... A closing break below this floor would leave stock vulnerable to test of the 50-48 area... Such a move by CSCO would almost certainly spill over to the rest of the category leaders... If several of these stocks started taking out key support levels, we could see another implosion. Will this doomsday scenario unfold? Quite frankly, it's too early to tell... Briefing.com still holding to view that Nasdaq merely confined to a broad range (roughly defined by 4300-3300)... Current slide has merely brought tech heavy index back to middle of that range... Once we get past warnings season, buyers likely to return in anticipation of Q3 numbers... But traders need to pay close attention to the category leaders over the next week or so, as they are sending a very ugly message at the moment... If that message grows louder, Nasdaq could hit bottom of range before it retests the top. Robert Walberg, Briefing.com