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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Electric who wrote (13174)	7/26/1998 5:59:00 PM
From: Robert Graham	Respond to of 42787

Interesting chart CSCO has. Moved up during the market sell off. Longer term momentum is flat and will take time to recover. The pop followed by a sell off of this stock was no surprise. Look at the MACD. When a MACD indicates good momentum that quickly fades and the indicator quickly curves down toward its signal line, there may be a bounce when the indicator meets its signal line before the stock resumes its sell off. This stock can move lower. The Stochs is on its way down toward its 50 signal line. This signal line may provide some support. Best case is a consolidation for the interim. Here the stock went into a consolidation during some strong market days which then popped and promptly sold off as a false start. The stock did bounce off of its 20 day EMA which is a good sign. I agree this is one stock to watch. Many of its technicals are still positive. It looks like momentum is what has suffered a great deal. But then this has been the case before the market sell off as it was basing. There is definitely some buying interest developing in this stock. I also notice that this company has a spurious earnings record that has been trending down for years. 5 year earnings growth rate of 55%, 3 year of 41%, and a one year of negative 16 percent. Last 5 years earnings record starting with 4/97 calculated on a 12 month change basis: 50%, negative 46%, 85%, 30%, negative 83%. The stuff that a speculator's dream is made out of: unpredictable but impressive earnings gains. Considering the market we are now in, I do think this is a good candidate for trading after this market correction is behind us. Institutions hold 70% of this stock. Interesting! So we have leverage value here in an effective float of 300M and an average daily trading volume of 10M, we have a monthly volume turnover of about 70% which is fairly good. I would watch for fund selling of this stock given its appreciation since about 75. Price rejection occured when the stock attempted to make it to above the 100 level. The tape will need to be consulted here. Bob Graham

To: Electric who wrote (13174)	7/26/1998 6:51:00 PM
From: Lee Lichterman III	Respond to of 42787

This is the third time people have mentioned INTC as a barometer of the future market. I don't get it. I understand that INTC is like MSFT, DELL etc, in other words a darling of the market but ... Here is a company that can't get their future product out the door on schedule, no software making upgrades necessary anymore and all but one PC maker reporting dismal performance of sales which are made up of their product. I am actually surprised they are not back down to the high 60s or low 70s right now. There were numerous companies that reported excellent sales with bright future prospects that have been hammered the last 2 weeks. I don't think INTC failing to climb would be an indicator of a bleak market but more an indicator that investors are starting to wake up and smell the coffee. To me, it is like saying if Yahoo doesn't make 300 we are all doomed. <ggg> I know I'll get slammed for this one.