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by 12/19/2000 6:22 PM
Stocks quoted in this article:
The fallout from the Federal Reserve's decision not to cut interest rates and to shift from a tightening bias to an easing bias has been dramatic. After trading in positive territory for most of the day, the Nasdaq-100 Trust (QQQ - 59-1/8) reversed lower upon the release of the news at 2:15 p.m. eastern time and subsequently closed at a new 52-week low on record volume. Total volume today cleared the 80-million mark versus the previous all-time high of 76.53 million, which was set on December 5.
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by 12/19/2000 5:18 PM
Stocks quoted in this article:
Online auctioneer eBay (EBAY – 32-5/16) dropped six points, or over 15 percent, in Tuesday's trading. This recession was catalyzed by an analyst, who drastically lowered his 12-month price target on the shares to 50 from 115. The Dain Rauscher Wessels analyst said this change reflects his concerns about the current market environment. He also said that "recent rumblings among the EBAY seller community" suggest that the firm would not be successful in attempts to increase its pricing structure.

Technically speaking, EBAY shares have been hovering just above the 30 level since late-November. Last week, the stock's upward momentum was thwarted overhead at its descending 10-week moving average. This intermediate-term trendline has served as resistance for the equity since late September. <
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by 12/19/2000 5:03 PM
Stocks quoted in this article:
Argosy Gaming (AGY – 18) has been fighting back from its late-1998 lows, staging quite a recovery from its all-time low of 1-7/8 that was achieved more than two years ago. Much of this quest higher has been supported by the equity's ascending 10-month moving average.

Today, the issue rallied over six percent amid a sagging broader market. This jolt higher was spurred by the firm's announcement that it should match earnings estimates for the fourth quarter. AGY officials went on to prognosticate that, barring severe weather that could keep casino-goers out of its boats, an upside surprise was possible. In additional news, AGY agreed to acquire Conseco Entertainment's minority stake for $260 million.

AGY is an optionable stock, but the site of heaviest open interest is the February 17-1/2 call, which is home to 1,305 contracts. 1,000 contracts traded on this strike today, as two blocks of 500 traded shortly after 11:30 a.m. These both traded between the bid and the ask prices. <
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by 12/19/2000 3:32 PM
Stocks quoted in this article:
The market does not seem to be pleased with the Fed's refusal to cut interest rates. Investors and traders alike are voting with their money, choosing to cash out. Some troubling signs that we are observing include further new lows from big-cap Nasdaq Composite (COMP – 2550.9) names. Two issues unfamiliar to the "new low" list a year ago are there today, as Microsoft (MSFT – 45) and Cisco Systems (CSCO – 42-1/2) both have the dubious distinction of new annual nadirs.
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by 12/19/2000 12:05 PM
Stocks quoted in this article:
By now, it is no secret that the dollars have fallen off of the tree. Last evening after the market closed, Dollar Tree (DLTR - 21-7/16) guided its fourth-quarter earnings downward. The Street had been expecting 70 cents per share. The company now forecasts around 59 to 62 cents per share. In extended trading, the shares reacted like an old oak tree in an autumn rainstorm, dropping over 14 points. In today's trading, the stock has recovered somewhat from a new intraday yearly low of 20-3/4.

On the options front, a block of 500 contracts on the January 35 put appears to have been closed at a tidy profit. The position was opened on November 20 at 2-5/16 and closed today for 13. The February 35 call is the site of peak open interest, with 3,500 contracts. This option now carries a bid price of 1/8 and has traded just 20 contracts so far today.
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