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by 11/6/2000 5:33 PM
Stocks quoted in this article:
Turnstone Systems (TSTN - 10-3/8) provides loop management solutions. Its solutions enable local exchange carriers to deploy and maintain digital subscriber line (DSL) services.

I have found that in a weak stock, one bearish chart gap is usually followed by a second. Such was the case today as the company guided analysts lower on its fourth-quarter revenue. The shares opened down 16-1/2 points and were unable to fill this gap today, creating the second bear gap. To get the report from the horse's mouth click on Turnstone Guides Investors . The company will give guidance on it first quarter 2001 during a conference call concerning the fourth-quarter shortfall. The shares are currently down by over 60 percent in today's market.

Prior to the announcement, the shares had been consolidating along the 20 level and appeared to be reversing course upward. Friday's close actually had the stock closing above its downtrending 20-day moving average for the first time since September 1. The high for the day coincided with the site of peak front month open interest option, the November call at the 30 strike.

Despite the plunge in the shares today, the November 15 call saw volume of 442 contracts on no open interest.
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by 11/6/2000 5:15 PM
Stocks quoted in this article:
For the 14th consecutive quarter, Cisco Systems (CSCO - 55-1/8) released earnings that exceeded analysts' estimates by a penny per share. Sales came in at the high end of expectations at $6.5 billion. Analysts, however, are anxiously awaiting CSCO's conference call, during which the company will provide its outlook for the second quarter and fiscal year 2001. The conference call is scheduled to begin at 4:45 p.m. eastern time.
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by 11/6/2000 5:13 PM
Stocks quoted in this article:
Computer storage maker EMC Corp. (EMC - 94-13/16) is off over three percent today as it continues to struggle in its attempts to overcome the century mark. From its late-May low of just above 50, EMC more than doubled to reach an all-time high at 104-15/16 on September 25. In early October, EMC fell back below the key 100 level and has made three unsuccessful attempts to overtake this important resistance.

Interestingly, today's price action has brought out a large options player speculating that EMC will continue to have trouble with 100. At some point this morning, a large position was opened using the January 105 call and the January 95 put. Total volume on each option was more than 14,000 contracts. Though it is difficult to tell as the trades came across the tape late, it appears that the institution sold the January 105 call for an average of 7-1/4 per contract. With the premium collected, the trader purchased an equal number of January 95 put contracts with an average price of approximately 9 per contract. The resulting premium required would be 1-3/4 per contract, or about $2,450,000. This option position would be profitable if EMC is at 93-1/4 or less at January's expiration.
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by 11/6/2000 4:29 PM
Stocks quoted in this article:
Voicestream Wireless (VSTR - 117-3/8) released third-quarter earnings after the close of trading today. The results, however, were nothing to write home about. VSTR reported a loss of $3.02 per share versus the consensus estimate of a $1.99-per-share loss. In after-hours activity, the shares of VSTR are still halted. <
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by 11/6/2000 4:06 PM
Stocks quoted in this article:
The percentage-gain leader on the Dow Jones Industrial Average (INDU - 10977.2) in late trading is General Motors (GM - 60-15/16). GM is up nearly seven percent on the day after bouncing off support at 57. This level acted as support in both June and July as GM free fell from its all-time high of 94-5/8 in late April. Though 57 failed to hold during GM's recent drop to 54-1/2, it was the intraday low on Friday as well as its Friday closing price. Though GM has moved steadily higher today to once again regain its 10-day and 20-day moving averages, it remains below its 10-week and 20-week moving averages, trendlines that rejected GM's rally attempt last week at 63-3/4.

Option activity continues to be weighted heavily toward the call side, as option speculators maintain their misguided optimism. The most active option is the at-the-money November 60 call with over 2,000 contracts traded. On the put side, the most active option is the November 55 put with just over 700 contracts traded. <
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