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by 12/7/2000 9:19 AM
Stocks quoted in this article:
Fiber optic networking company CIENA (CIEN - 95-3/8) reported fourth-quarter earnings this morning before the opening bell. The company reported profits of 14 cents per share, beating the Street's estimate of 12 cents per share. So far this morning, it appears the Street does not like the report. In pre-market action, CIEN is trading over seven dollars lower. Potential technical support in the form of the 10-month moving average resides at 85 and is likely to be tested today.
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by 12/7/2000 9:17 AM
Stocks quoted in this article:
Shares of Applera Corp. - Celera Genomics (CRA - 42-13/16) bucked the lower trend in the broad-market yesterday. The company submitted its draft of the human genome on Wednesday to the journal Science. CRA shares added over three points, or seven percent, in yesterday's trading. CRA has been struggling under the weight of its short-term 10-day and 20-day moving averages since late September. <
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by 12/7/2000 9:01 AM
Stocks quoted in this article:
Hewlett-Packard shares (HWP – 32) could be under some pressure this morning as a major brokerage firm reduced its rating on the shares from an "attractive" to a "neutral."

The early-November warning from Dell Computer (DELL - 18) regarding sales growth sent technology shares tumbling in sympathy. HWP was caught up in the swirl and suffered three bearish gap days, moving the shares closer toward the round-number 30 level.

This morning's downgrade may force the shares to test the last bastion of put support at the 30 strike. The stock is putting its faith in the 4,428 contracts on the front-month 30 put. But, as we have long stated, the reliability of puts strikes as support beneath a declining stock tends to be relatively dubious.

Should the equity breach this options-related support, the next level of potential technical protection resides at the 28 mark. This level marked previous highs for the shares in April and May 1998, and January and June 1999. It also defined the equity's nadir in October 1999.

On the options front, the highly speculative , out-of-the-money December 35 call was extremely active during Wednesday's session. Volume of 6,963 translated into 3,396 open positions. <
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by 12/6/2000 3:56 PM
Stocks quoted in this article:
Sepracor (SEPR - 77-5/16) is hanging onto modest gains in today's trading despite a generally weaker market. SEPR has recently fought to hold onto support in the form of its 20-month moving average. The shares finished the month of October just below this trendline, the first monthly close below the 20-month moving average since September 1996.

Option activity is fairly light on SEPR today, except for action on the April 65 put. This out-of-the-money option has seen 2,400 contracts change hands. Open interest on the option is 3,530 contracts; so much of today's activity may be the result of traders exiting positions.
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by 12/6/2000 3:54 PM
Stocks quoted in this article:
Carnival Cruise Lines (CCL - 25) is experiencing a delayed reaction to the Greenspan-inspired rally that took the broad-market higher yesterday. CCL was fractionally lower yesterday, but is up over 11 percent today, creeping above its declining 10-month moving average. Earlier today, CCL traded at its highest level since September 26.

The April 30 call is active in today's trading. This out-of-the-money option has seen over 12,300 contracts cross the tape. Open interest on the option was only 1,412 contracts coming into today, thus the large majority of today's volume is the work of traders entering new positions.
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