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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (1519)	7/1/2001 11:49:24 AM
From: HG	Respond to of 10077

Moi ? <g>

To: Augustus Gloop who wrote (1519)	7/1/2001 12:41:29 PM
From: Rich1	Respond to of 10077

The Big Picture Monday, July 2, 2001 Printer-Ready Version Trading Glitch Confounds Nasdaq Investor's Business Daily Price, volume and reality diverged Friday afternoon as the Nasdaq fumbled with network failures. The electronic exchange suspended trading on some of its systems just after 3 p.m. EDT. Nasdaq officials extended trading an extra hour to make up for the lost time. (They later blamed WorldCom (WCOM), which operates the Nasdaq network, for the disruption.) They should have quit and licked their wounds with the market closed. Toward the end of the impromptu extended session, many stocks traded wildly. Prices jumped back and forth by 10% in some cases. Bid and ask quotes had little to do with last trades. To make matters worse, the Nasdaq composite wasn’t updated for hours. Take Engineered Support Services (EASI), a stock that’s been struggling with its breakout for the past two weeks. The stock traded lower between 33.62 and 31 during Friday’s normal hours. But by the end of the extra hour of trading, Engineered Support had erased its deficit and shot up to 39.19, a gain of 4.81. Meanwhile, the NYSE showed a burst of trading in its last hour. Some specialists linked the activity to end-of-the-quarter window-dressing, which isn’t unusual. However, the spike was unusually heavy. Trading surged 30% to 1.73 billion shares. At the end of the first quarter, the NYSE traded 1.33 billion shares, up 6% from the prior day. Monday’s trading should ultimately resolve the uncertainty and questionable prices from Friday. Based on information at press time, the Nasdaq climbed 1.7% as volume rose 4%. The S&P 500 gave back less than 2 points. The Dow Jones industrial average retreated 0.6%. Two Dow stocks accounted for more than half of the blue chip index’s loss. Honeywell (HON) dropped 3.21 to 34.99. General Electric (GE), which has been trying to acquire its fellow Dow component, said Honeywell’s offer to lower its price to save their merger made “no sense” for shareholders. Johnson & Johnson (JNJ) fell 2.24 to 49.96. The bulk of the loss came in heavy trade during the last hour. Despite the chaos, some high-quality leaders chalked up gains on heavy trade. Abercrombie & Fitch (ANF) rose 1.95 to 44.52 on heavy volume. The young adult fashion retailer is building a six-week flat base after busting out of a longer base in mid-May. School operator Apollo Group (APOL) bounced from its session lows to end up 2.40 points at 42.45, good for a closing high. Note the changes to the charts of psychological indicators at the bottom of the General Markets & Sectors page in the print edition. The percentage of bullish and bearish investment advisers now reside on one chart. The time frame also has been extended to cover one year. The new format makes it easier to spot extremes in their sentiment. Times when bears exceed bulls have coincided with market bottoms. Above that chart you’ll find the put/call premium ratio. It’s another contrarian gauge that spikes lower at market bottoms. Levels below 0.2% have paved the way for new bull markets. The short-sale charts now cover a year’s worth of trading, rather than 10 weeks. The longer period gives you a better view of how bearish traders are acting. Return to top of page