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To: Larry S. who wrote (15570)	8/2/1998 2:00:00 PM
From: DanZ	Respond to of 53068

MU, market comments. Larry, The chart on MU looks good, and as I'm sure you must know by now <gg>, I'm also very bullish on the SOX of which MU is a component. The money flow has been up 21 out of the past 22 trading days, indicating that the stock is under accumulation. MU broke out above the upper daily bollinger band on Friday and I would hold it as long as it doesn't close back inside of the daily bands. Support is around 32 1/4, resistance at about 34 1/4 from the weekly chart. The target on the monthly chart is at about 46. It made a double bottom on the monthly chart near 20 that took 8 months to complete. Given the time that the stock spent basing, and subsequent move, I think it is very likely that MU has seen it's low and will trade higher over the next few months along with the SOX and many other semiconductor stocks. Market comments: The major averages all closed right at their lower daily bollinger bands on Friday and are testing what I consider important short term support. While I think the odds favor the indexes breaking daily support, weekly support is only 1 to 2 percent lower and I don't think we will have a big meltdown. DJIA: Daily support at 8820 and flat; weekly support at 8740 and rising. The weekly bollinger bands are contracting, setting up an eventual breakout one way or the other in the intermediate term. Resistance is near 9350, making the risk to reward very good for the bulls. OEX: Daily support at 547 and flat; weekly support at 542 and rising. The OEX has been stronger than the DJIA for a few months and I think this trend will continue given the chart patterns. The OEX weekly bollinger bands are forming an ascending triangle with resistance at about 575 and support at 520. S&P 500: Daily support at 1110; weekly support at 1090 and rising. The weekly bands are contracting like the DJIA. If the S&P closes below 1110, then I think the odds are very high that it will decline to about 1090 (only 1.8% lower). SOX: The SOX has support at 240 and resistance at 275. It is trading in the middle of its range and exhibited good relative strength versus the major averages last week, especially the DJIA and Nasdaq. I expect this to continue longer term given that the semiconductor stocks have already gone through a steep correction and have been showing signs of bottoming. Support for semiconductor stocks has been rising as more and more investors accept the notion that the industry has hit a cyclical bottom. One analyst who has yet to turn bullish is Kurlak from Merrill Lynch. He is well respected and is still bearish on the industry, although his negative comments have been met with more of a muted response recently. The stocks in the SOX are all trading at very reasonable valuations and I think they will continue to attract money and move higher. The fundamentals, valuations relative to their historic levels, valuations relative to other stocks, and charts all support higher stock prices, IMO. Dan

To: Larry S. who wrote (15570)	8/2/1998 6:16:00 PM
From: Paul Dubsky	Read Replies (1) \| Respond to of 53068

COMS Larry, Dan Z, Ron, Susan, et al "Looks like" COMS wants to stabalize at $24.50, but will it? Is it a fake out headed to $20, or a true bottom, headed back up to $30? All in short term trading terms, of course.... Long term, can anyone argue that, fundamentally, COMS should be a $50 - $75 stock? It's trading well below its peer group, with CSCO trading a multiples triple to what COMS is. Sure, CSCO is CSCO, but really, are they worth 3x COMS? Even lame ASND, even after Friday's sell-off, is trading 2.5x COMS' valuation. What am I missing? COMS is trying to capture the "Always Connected" tradename, and with connectivity being paramount on everyone's minds, don't you think they're sitting pretty? Thanks for any sobering comments before I plop down my money in COMS.