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

To: Jorj X Mckie who wrote (2107)	7/13/2001 8:27:05 AM
From: Rich1	Respond to of 10077

There you go again with those Round Bottoms...Any Heart shaped...<gg> The Big Picture Friday, July 13, 2001 Printer-Ready Version Better News Sees Techs Spike Higher Investor's Business Daily Like a Rolling Stones reunion concert, some aging megastocks strutted their stuff Thursday, sending investors dancing in the streets for at least a day. First came Yahoo (YHOO). After Wednesday’s close, the No. 1 Web portal reported a third-quarter profit of a penny a share. That was 9 cents lower than the year-ago quarter, but it beat First Call’s break-even estimate. The stock rallied 7.2% to 18.26, but is still 87% off its 52-week peak. Microsoft (MSFT) kept the good vibes flowing. Also after Wednesday’s close, the world’s top software maker said its June-quarter revenue would be up to 3% higher than expected, or $6.5 billion to $6.6 billion. That would amount to a 12% increase from a year ago, slightly down from 14% growth the previous quarter. Then came General Electric (GE), the granddaddy of blue chips. The diversified giant kicked off this quarter’s earnings tour by matching Wall Street’s views of 20% growth. Revenue fell 3%, the first year-over-year drop since the third quarter of 1994. See the pattern? The concert wasn’t their greatest ever, but at least they beat Wall Street’s expectations. Perhaps by virtue of their dominance in huge markets, investors treated the news as a clue that the economy’s coming back. Microsoft gapped up at the open and soared 5.10 points to 71.60 on heavy volume. It also gave a big boost to all three major indexes. The Nasdaq surged 5.3%, its biggest one-day gain since April 18. The Nasdaq 100, which includes the 100 biggest nonfinancial companies in terms of market cap on that exchange, soared 6.6%. The S&P 500 recouped its losses over the previous two days and sprinted 2.4%, slightly more than the Dow’s 2.3% gain. Advancers trounced decliners by wide margins on both markets. Volume was also bullish — at least for the Nasdaq. Turnover rose 7% to 1.89 billion shares, the second straight day of heavier trade on an up session. On the NYSE, volume edged slightly higher, yet it was well above average. The Dow slid 11% over the past seven weeks. Will the latest rally stick? Look for a follow-through, or a gain of at least 2% on heavier volume than the previous day, in the next two to five sessions. If it does, it may mean institutions are getting back in the market in force. Not all follow-throughs work, but no major market bottom has taken place without one. The Dow’s follow-through on March 27, when it rose 2.7% on above-average trade, has held true so far. Other sector-specific indexes reflected Thursday’s strength. The Morgan Stanley cyclical index rallied 3.3% and the Russell 2000 small-cap gauge 2.8%. A handful of breakouts popped up, the most of any day in weeks. Dianon Systems (DIAN) vaulted 3.39 to 47.21 on 3 1/2 times normal trade. The medical testing services firm cleared a 10-week base. St. Jude Medical (STJ) capped an eight-week base, jumping 2.58 to 64.90 on word the Food and Drug Administration approved its new pacemaker.