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by 10/31/2000 12:18 PM
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In Monday's trading, Southwest Airlines (LUV 28-1/16) moved ahead by nearly seven percent to log an all-time intraday high. From a near-term intraday low on September 19 to yesterday's all-time intraday best, the shares ascended by more than 33 percent, climbing above all of their significant moving averages. In today's action, though, the stock has peeled off almost one point, or over two percent.

In LUV's options pit in the early afternoon, 3,511 contracts have crossed the tape on the December 27-1/2 call. This in-the-money option has open interest of 2,770 contracts. This is now among the most-active calls on the CBOE.

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by 10/31/2000 10:19 AM
Stocks quoted in this article:
Beverage giant PepsiCo (PEP 47-1/2) operates worldwide soft-drink, juice, and snack food businesses such as Doritos tortilla chips and Lay's potato chips. PEP also owns the international rights to the Seven-Up brand. PEP can now add SoBe products to its list of offspring as it has apparently reached an agreement to buy the product line for $370 million. PEP edged Coca-Cola (KO 59-1/2) for the drinks manufactured by the South Beach Beverage co. Both KO and PEP do not market such new-age drinks that are becoming very popular among the more health-conscious consumer.

PEP received more good news this morning when the FDA approved advertising claims that potassium cuts stroke risk and high blood pressure. PEP's Tropicana orange juice division has already made plans to start marketing the slogan as soon as Wednesday and have it posted on containers within a month. All this good news comes at the perfect time for the stock, as yesterday it soared to a new all-time high of 49-1/4. The stock has been trending in a sound upward channel, finding near-term support at its 20-day moving average.<
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by 10/31/2000 9:55 AM
Stocks quoted in this article:
With today being the last day of the month, the S&P 500 Index (SPX 1407.16), Nasdaq Composite (COMP 3242.2), and Dow Jones Industrial Average (INDU 10,859.3) all entered this morning's trading sitting close to their respective 20-month moving averages.

The SPX's 20-month trendline is now perched at 1390, just eight points below yesterday's close. The COMP remains beneath its 20-month moving average, which is currently resting at 3400. The technology-laden barometer last finished a month below its 20-month trendline in August 1998. AS for the Dow, it has overtaken its 20-month trendline this morning, as the long-term moving average is at about 10,835.

We view the 20-month moving average as the line of demarcation between bull and bear markets.

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by 10/31/2000 9:11 AM
Stocks quoted in this article:
Yahoo! (YHOO 52-5/8) shares have certainly been beleaguered of late. After moving as low as 45-1/16 on October 18, the equity has subsequently attempted mounted a meager rebound attempt, which has failed at its 10-day moving average.

Not all traders are singing the blues, though. The January 210 put on YHOO saw 11,500 contracts change hands on the CBOE yesterday. A 4,000-contract and a 5,000-contract block crossed the tape at 158 to account for much of the daily volume. Because open interest declined on the option from just over 11,000 contracts to about 4,100 contracts, we surmise that this volume was the result of liquidations to take profits.

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by 10/31/2000 9:09 AM
Stocks quoted in this article:
The AMEX Networking Index (NWX 940.2) will be worth watching today after this morning's better-than-expected profit report from Alcatel (ALA 57-1/8). The index may experience a well-needed relief rally. Subsequent to Nortel Networks' (NT 40) disappointing revenue numbers reported as part of their earnings last Tuesday, the NWX has proceeded to move below its 10-month moving average and the round-number 1000 level. The saving grace may be that the index has been able to hold its 20-month moving average thus far, which sits at roughly 850.<
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