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by 12/27/2000 2:08 PM
Stocks quoted in this article:
Job cuts rose 19 percent in December in the Internet sector as the companies continued to suffer. Salon.com (SALN- 2-15/16) cut 20 percent from their staff, Ask Jeeves (ASKJ- 11/16) cut 25 percent, and Sonic Foundry (SOFO- 1-13/16) cut 40 percent of their personnel.

The CBOE Internet Index (.INX- 196.66) continues to trade well-below its 10-month and 20-month moving averages. Trading is currently at levels not seen in more than two years.

Investors remain blissfully optimistic about the sector as the Schaeffer's Open Interest put/call ratio (SOIR) listlessly lingers at a modest 0.46. This reading is lower than all but a handful of such readings over the past year. Within the sector can be found securities like CMGI (CMGI- 6-1/8 ) and At Home Corp (ATHM- 5) that have more exuberant ratios at or approaching yearly lows.
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by 12/27/2000 1:55 PM
Stocks quoted in this article:
Network Associates (NETA- 4) is setting two new records for its history books, but not in the direction most shareholders would prefer. After announcing on Tuesday that they would be posting an earnings' loss instead of a profit analysts had expected for the fourth quarter, the security has spiraled downward, losing more than 65 percent so far today. Trading volume is through the roof with the stock having already traded over 54 million shares.

NETA blamed the loss on a weakening customer demand and key distributors lowering inventory levels. The company is also reeling from the blow of the loss of three of their main executives. The CEO, president, and Chief Operating Officer are expected to step down. <
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by 12/27/2000 11:05 AM
Stocks quoted in this article:
If you closely follow the S&P 500 Index (SPX - 1320.13) over the short term, be wary of the 1321.65 level. This point becomes critical as it marks a 50 percent retracement of the decline that began on December 11. The index made an intraday high of 1389.05 and the low was created on December 21 at 1254.26. From another perspective, 1321 is also important as it marked short-term troughs on October 13 and November 22. <
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by 12/27/2000 11:03 AM
Stocks quoted in this article:
The AMEX Securities Broker/Dealer Index (XBD - 544.16) was able to muster another positive close in yesterday's trading. The group continues to show strength after finding support at the 500 level on a couple of occasions earlier this month. The 500 level is also key because it corresponds roughly with the XBD's rising 20-month moving average.<
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by 12/27/2000 11:02 AM
Stocks quoted in this article:
Intel (INTC - 33-1/2) shares have spent the month of December in a consolidation phase. Rally attempts continue to be beaten back by the stock's overhead 20-day moving average. The open interest configuration continues to be dominated by out-of-the-money call open interest. Should INTC rally, it will have to grapple with over 58,000 and 64,000 contracts of call open interest on the January 35 and January 40 calls, respectively. <
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