- Subject: DAYTRADERS.COM WEEKEND REPORT - 01/05/02
- From: "DayTraders.com" <weekly_report@daytraders.com>
- Date: Fri, 4 Jan 2002 21:15:54 -0800
- Comment: This message sent at 22:03:44 EST
DayTraders.com quick links: Visit DayTraders.com : http://www.daytraders.com Try our daily service: http://www.daytraders.com/trial.html Portfolio performance: http://www.daytraders.com/performance.html ------------------------------------------------------------------------------- Now available! The new MBT Navigator is here - state of the art in direct access order entry. Designed purely for speed and ease of use. Use as a stand alone application with free level II data, or integrate automatically with popular data vendors such as eSignal, Qcharts or DTNiq. One click order entry at your finger tips.... the MBT Navigator from http://www.mbtrading.com, Speed is only everything (tm) ------------------------------------------------------------------------------- ================================================================= D A Y T R A D E R S W E E K L Y M A R K E T O U T L O O K ================================================================= for 01/05/02 (best viewed or printed in Courier 10 point) -------------------------------------------------------------------------------- NOTICE: The views and information provided here are not necessarily those of the editor or DayTraders.com, nor should they be interpreted as investment advice or as an endorsement of any security or company's stock. This information is provided for informational purposes only and without warranty of any kind. Be advised that day trading has large potential rewards, as well as large potential risks involved. Trading of securities may not be suitable for all users of this information. You, and not DayTraders.com, assume the entire cost and risk of any investing or trading you choose to undertake. Remember, past performance does not ensure future results. Editors, staff and members of DayTraders.com may have long or short positions in securities and/or options listed herein. Further, the redistribution of information provided here or via our Internet site, without the express written consent of DayTraders.com, is strictly prohibited. The receipt of this information constitutes your acceptance of these terms and conditions. -------------------------------------------------------------------------------- WEEKLY MARKET OUTLOOK & COMMENTARY ------------------------------------ For the week, the Dow gained 122.75 points to finish at 10259.74, while the Nasdaq rallied 72.11 points to close at 2059.38. The S&P added 11.50 points this week to end at 1172.51. Volume for the week was average, but did start to pick-up late in the week. It was a solid holiday shortened week for the major averages. After a weak session Monday, investors returned for the new year in a buying mood. Several bullish analyst sales calls on selective issues led to the broad-based strength in the markets. Especially strong were technology shares, which continue to be the sector which investors seem to have the most interest in. Within the tech sector, software and chip shares were the ones paving the way higher. Another positive was the fact that volume picked up late in the week, after thin trading conditions due to the holidays. All in all, it was a solid week for the bulls. In our trading for the week, we were able to close out a number of positions for solid gains. They included: The Profit Recovery Group, Tenet Healthcare and shorts of Citigroup and Darden Restaurants. We will also be carrying a number of positions both long and short into the week ahead. Our strategy continues to remain on the cautious side, as we feel the major average present a great deal of risk at current levels. As such, we also think it's wise to keep cash levels rich moving forward. Despite the market's recent breakout to the upside, we maintain our cautious stance moving forward. Much of the rally late in the week looked to stem from program buying, which was likely due to money coming into these fund companies at year end (i.e. 401K's, IRA's, etc). Keep in mind, with these buy programs, stocks are often bought with little regard to price. This often creates an artificial type lift in stock prices. Furthermore, buying was also due to analysts upgrading many of the same stocks/sectors they have tried to push for the past 21 months. Earnings will be the tell tale sign and if companies are not able to raise numbers aggressively in the upcoming reports, we do not feel there is any way to justify the huge multiples most stocks trade at. In the week ahead, earnings season will get started. There are no large bellwethers on the schedule. However, companies that should be able to move the markets such as Gap, Intraware, Rational Software and Cree are all set to report. Additionally, the PPI report, as well as a speech from Mr. Greenspan, are both scheduled for Friday; these events could be market movers. With that said, we would expect things to really start to pick-up next week, as investors will be able to get some "real data" to trade off of. Moreover, many large players may have been taking it easy (i.e. on vacation) due to the holidays and they should all return Monday. All right then, that's it for this weekend. As always, we look forward to seeing you through the week at http://www.daytraders.com. Until then, good luck in the markets! :-) Brian Frechman, Market Editor Ray Johns, Senior Market Editor DayTraders.com -------------------------------------------------------------------------------- Copyright (c) 2002 - DayTraders.com All rights reserved worldwide. Proudly serving daytraders & short term investors since 1996 -------------------------------------------------------------------------------- NOTE: This report is provided compliments of http://www.DayTraders.com. You are receiving this report because you registered to receive it at our website or because you have previously taken a two week free trial of our services. It's provided free of charge. To subscribe send e-mail --> subscribe-weekly@daytraders.com To unsubscribe send e-mail --> unsubscribe-weekly@daytraders.com -------------------------------------------------------------------------------- For information & free trial of our paid services: http://www.DayTraders.com --------------------------------------------------------------------------------