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by 8/21/2000 2:04 PM
Stocks quoted in this article:
Gemstar - TV Guide International (GMST - 73) develops, markets, and licenses proprietary technologies primarily for consumers. After completing a consolidation into its ascending 10-day moving average on August 16, GMST rocketed 13 percent higher over the next two trading days. Currently, the stock is off 1.5 percent on the day.

On the options front, traders are adding to GMST calls in early afternoon activity. The in-the-money September 55 call and the out-of-the-money September 75 call are two of the most-active call contracts on the Pacific Exchange today with volume of 1,500 contracts at the 55 strike and 1,750 contracts at the 75 strike.<
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by 8/21/2000 12:57 PM
Stocks quoted in this article:
Alcatel (ALA - 75-1/2) builds next-generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide.

After putting in a new all-time high in Friday's session, ALA is off over two percent in early-afternoon trading. However, ALA is still trading comfortably above potential short-term support at its ascending 10-day moving average.

On the options front, the in-the-money September 75 call is active with volume of 1,370 contracts. It is noteworthy that today's volume crossed the tape near the bid in two large blocks of 1,000 and 370 contracts, respectively. This is one of the most-active call contracts on the Pacific Exchange. <
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by 8/21/2000 12:55 PM
Stocks quoted in this article:
One barometer of health in the broader market is that a trio of market bellwether names are approaching or have achieved all-time highs in today's trading. Brokerage giant Merrill Lynch (MER - 144) has used support from its 10-day moving average to springboard into new-high territory.

Diversified financial services powerhouse Citigroup (C - 76) has also logged a new high today. The rally in C is also significant because it takes the shares above the level of peak call open interest in the September series. Over 22,000 contracts of open interest reside on the September 75 call. By comparison, just under 6,000 contracts of open interest sit on the September 80 call.

Finally, those who believe that as General Electric (GE - 56-7/8) goes, so goes the market can be encouraged that GE is again within a fraction of a new high. The shares appear to have found support from their 10-day moving average.
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by 8/21/2000 12:39 PM
Stocks quoted in this article:
Copper Mountain (CMTN - 69) is up over seven percent in midday trading. The company announced that seven leading semiconductor technology suppliers will use CMTN technology in some of their voice-over digital-subscriber-line platforms.

The stock has run into resistance today at its downtrending 10-day moving average, a trendline that has placed downward pressure on the shares since they crossed below it in mid-July. Even with today's gains, the equity remains below all its key moving averages.

Despite this daunting technical picture, the call side is dominating in today's option activity on CMTN. The September 95 call has logged volume of 1,344 contracts. Since the option has only 190 contracts in open interest, today's action likely represents the initiation of new positions. In addition, the September 70 and 80 calls have seen volume of over 700 contracts each.
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by 8/21/2000 12:32 PM
Stocks quoted in this article:
After finding intraday resistance at the 1500 level in both last Thursday's and last Friday's trading, the S&P 500 Index (SPX - 1500.72) has been able to move above this key level. After moving as high as 1502.80 earlier this morning, the SPX pulled back to successfully test the 1500 level from above. It will be important to see where the SPX closes today in relation to this psychologically important level. A close significantly above this level argues for a move to the next "half-century" level, 1550, which was resistance for the index in late March.<
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