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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: _warlock_ who wrote (40148)	1/6/2001 3:41:51 AM
From: craig crawford	Respond to of 64865

Someone was kind enough to send this to me, and I tried to clean it up as best as possible so it is easier to read. I went and checked the closing prices of all the stocks mentioned below, and added bold to the stocks which qualified as a selling climax by closing higher this week than last after making a 52 week low. SUNW barely squeaked by with a higher close this week after making a new 52 week low this week. The Selling Climax As a result of Tuesday and Wednesday morning's market action, many well-known stocks made new 52 week lows. These same stocks have rallied notably off their new lows, primarily due to the Fed rate cut. This now sets up the potential for many of these stocks to give a selling climax. Given that, today we wanted to briefly discuss "the selling climax" and list for you some of those stocks which have the potential for a selling climax. The selling climax can signal that a stock has made an intermediate term bottom. Such a climax can provide a reason to "bottom fish" a beaten up stock. The selling climax occurs when a stock makes a new yearly low (52 week) during the week, then closes up for the week. Such action in a stock suggests that the selling pressure has reached a climactic level - when it makes the new yearly low, then has likely dried up. When such a selling climax occurs, it often can signal that a bottom has been made in the stock. For those more aggressive in nature, this climax can provide a buying opportunity. Let's look at an actual example of a selling climax using our old favorite XYZ Corp. XYZ Weekly Price Data (Hypothetical) Week Ending....Close...High.....Low 01/05/01..........63.00....63.50...56.75 12/29/00..........57.625..60.50...51.375.(New 52 Wk Low) 12/22/00..........53.75....78.50...52.75 From the above data you can see that during the week of December 29th, XYZ made a new 52 week low of 51.375. But notice that the stock closed at 57.625, up from the previous week's closing price of 53.75 - this is the "Selling Climax", and suggests the stock could be making an intermediate term bottom. Below we list numerous stocks which made new 52 week lows this week. With many of them having rallied up from those lows, they have set up the potential for a selling climax. The table below will show you where the stock has to close today for the selling climax to occur (which as defined above, would be above the price listed in the column denoted "Last Wk's Close." Stock-Symbol............Current Price.....52 Wk Low......Last Wk's Close Sprint PCS - PCS.........23.75............17.625.............20.438 ADC Telecom-ADCT.....18.875...............15.125.............18.125 Amazon - AMZN..........15.50...............13.563.............15.563 Ariba - ARBA..............43.50..............33.875.............53.625 Avanex - AVNX.............59.75................40...............59.563 Aware - AWRE..............15...............12.875................17.75 Broadcom - BRCM........101..............72.375.................84 Broadvision-BVSN...........11...............8.50................11.813 CMGI - CMGI..................5.................4.125...................5.594 Cisco Systems-CSCO....41.50...........31.938.................38.25 Commerce One-CMRC...21.625...........16.625.............25.312 Conexant - CNXT..........17.125...........12.625...............15.375 Echostar - DISH..........25.625............20.50................22.75 Exodus Comm - EXDS...19.375...........14.875..................20 Gateway - GTW...........20.55.............15.30................17.99 Knight Trdng-NITE.......18.125...........13.25...............13.938 Nextel - NXTL..............28.25..............22.25....................24.75 Nortel Ntwk - NT..........36.25................29....................32.062 ONI Systems-ONIS.....33.25...............25.125.................39.563 PMC Sierra - PMCS....74.25................57.75.................78.625 Proxim - PROX............33.50................28.125....................43 Sap ADR - SAP..........30.25...............29.125.................33.688 STMicro - STM...........42.625...............37...................42.812 Sandisk - SNDK...........31.125..............24.50...................27.75 Sun Micro - SUNW......31.125.................25....................27.875 TMP World - TMPW.....49.125.................33......................55 Tower Semi - TSEM....10.625...............8.938.................10.563 Verisign - VRSN.........76.875................58.188...............74.188 Veritas - VRTS...........91.875................64.438................87.50 Vishay - VSH.............15.625...............13.75.................15.125 Vodafone - VOD...........36.125.................33..................35.813