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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (26358)	10/26/2000 11:02:01 PM
From: cybersaavy	Read Replies (1) \| Respond to of 42804

From Briefing.com briefing.com Updated: 27-Oct-00 General Commentary Don't be fooled by yesterday's closing rally, the selling ain't over yet - especially in the high valuation stocks which just started tanking on Wednesday... The bounce was related to three things: 1) Nasdaq found support near the recent corrective lows 2) short covering in optical networking stocks ahead of JDS/Uniphase's earnings report and 3) light bargain hunting. Given that the Nasdaq was trading above 3500 two days ago, Briefing.com wasn't surprised by fact that we saw some buying interest when the index broke below 3100 and moved to within striking distance of the 3026 low. Short-covering ahead of the JDSU report also came as little surprise, especially given that the stock was testing congestive support at 62 in early afternoon trading - a full 41% below this week's high of 104 9/16... Not wanting to risk being short if the company provided a bullish surprise after the close, bears covered their positions comfortable in the knowledge they could pound the stock again today if the news was bearish. As JDSU began to climb, so did the rest of the momentum crowd - and for much the same reason. Trader's should note that JDSU reported earnings of $0.18, two cents better than expected... Year-over-year revenues rose 241.8% to $786.5 mln. On a sequential basis sales jumped by 23%. For more on the numbers and the conference call see Industry Briefs below and/or Short Stories page. Short covering wasn't the only reason stocks such as JDSU bounced back, some of the more optimistic traders were "bargain hunting" - like we said JDSU had dropped 41% in a matter of days... Nevertheless, Briefing.com contends it is too soon to jump back in the momentum crowd... Though many of the recent relative strength leaders have shed 35% or more the past couple of days, most of these stocks aren't yet bargains... For one, technicals have broken down with many stocks taking out key support levels on big, big volume... It takes time for stocks to repair such damage... In addition, valuations are still too high (in the current environment) for these stocks to launch a sustained recovery... Look for those investors that failed to get out of these stocks on Wednesday to sell into any recovery gains. As these leadership stocks resume their descent, the rest of the Nasdaq will follow suit. And the next test of the the psychologically important 3000 won't be as successful. Robert Walberg (or perhaps the bottom's in when Briefing.com & Robert Walberg least expect it?) cybersaavy