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To: Dealer who wrote (8492)	1/4/2001 10:14:48 PM
From: Walkingshadow	Respond to of 13572

Hi dealie, Technicals on the daily NEWP chart look equivocal and undecided: askresearch.com NEWP has now rallied into the area of its declining short-term moving averages, which should provide fairly strong upside resistance. The long term moving averages are in the same general area, and are either horizontal or slightly downsloping. So, these moving averages should provide considerable resistance overhead. Chart resistance is at 90, then about 101. Also, NEWP showed no follow-through at today's open after yesterday's big rise. It started selling off slowly, and just continued to do so throughout the day. But now, it has entered a zone of support, at the rising moving averages: askresearch.com NEWP's short-term picture should be much clearer when it becomes apparent whether it will hold support here or not, at 80. It looks ready to test here tomorrow, probably early on in the session. On the hourly chart, there are sell signals formed by a negative 5 ema/8 sma crossover, which occured 3 hours before the close. This was preceded a couple of hours earlier with declining OBV and a negative stochastic crossover sell signal, though this was not a strong signal: 207.61.23.99 Although January expiration is still two weeks away, I think it is worth noting that there is also a lot of overhead front month call-related resistance, with much less put-related support below, but the "Max Pain" point is at 80, just a little below where NEWP closed today. iqauto.com There are a lot of call positions clustered at the 80 and 100 strikes, so these should provide resistance. My interpretation of this is that there is strong overhead call resistance, but since the Max Pain point is not much lower than where NEWP is currently trading, there will probably not be a great effort from the options pits to get NEWP much below where it now stands. The put/call ratio now sits at 0.36, which is low relative to the CBOE equity put/call (around 0.65), but NEWP's put/call typically is less than that of the CBOE in general. In fact, the put/call for NEWP has not gotten above 0.75 all year long. Still, today's reading is low for NEWP even, though not at an extreme. The yearly low reading was 0.19, but NEWP has not had a put/call less than 0.40 for more than a month. So, today's put call is on the low side, but not an extreme low, tending to support the idea that the stock will move lower. There are 2.35 million shares held short as of 12/8/00, which represents about 80% of one day's volume. However, I would guess that much of these were covered yesterday. So, the remainder would not likely contribute further to a short squeeze, making a short position less risky. biz.yahoo.com Bottom line is that NEWP looks more ready to move lower than higher. I would anticipate a short-term move down, with some stabilization into the 80 range going into options expiration likely. Next support looks to be 80, then 68, then 57. As always, JMVHO......... Walkingshadow