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Email Version, Section 1, Sunday, 04/30/2000
The Newsletter         Sunday 04/30/2000 1 of 1 
Copyright 2000, All rights reserved.  
Redistribution in any form is strictly prohibited.  

 - Your World Leader for Trading Stock Splits on the Internet - 

Posted online for members at:

The entire newsletter is best viewed in COURIER 10 for alignment
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Market Commentary - The Big Picture
Friday's Split Announcements - WEBB Cancels Stock Split
Sector Watch - - Breakdown by sector of market performance. 
Event Calendar - Next Week's Economic reports 
Editorial - Ericsson Blows Away Wall Street Estimates
Monday's Expirations 
Split Play-of-the-Day - JNPR
Split Plays - New - Updates - Drops


Market Commentary

The Big Picture

There are numerous factors at work in the market.  But if you step 
back from the microcosmic world of your favorite individual stocks 
you can get a broader perspective of the market as a whole.  We 
seem to be stuck in a huge trading range that could last awhile 
with bullish and bearish market influences engaged in a classic 
tug-of-war.  Leading the bearish sentiment is an extremely hawkish 
Fed.  Interest rates appear destined to rise higher, especially 
after last week's report of a record increase in the Employment 
Cost Index.  Greenspan has been strongly influenced by this number 
in the past.  Another key bearish influence is the end of the 
earnings period.  We saw many better than expected earnings 
reports that failed to drive the markets into new high ground.  
Market tops are typically found after blowout quarters for the 
major indices and market bottoms are found after vast earnings 
disappointments.  The key here is that there is very little good 
news to focus upon for awhile.  The biggest bullish market 
influence is cash, cash and more cash.  Record income leads to 
record consumption AND investment.  Baby boomers are still trying 
to build up their nest eggs in the hopes of a comfortable 
retirement.  In the future, individual investors may begin to 
broaden their investment choices to include bond, balanced and 
value funds as opposed to an overweighting in the hottest sector 
funds, but the sentiment that the best place for continued long 
term growth is the stock market and this is unlikely to change any 
time soon.

Sector rotation has also been an apparent trend in recent weeks.  
Continuing to look at the big picture, it has been healthy that a 
lot of the money in "frothy" stocks has been re-directed into more 
established and somewhat more stable industry groups.  After a 
lengthy consolidation, a broad based rally later this year will be 
more sustainable if there are fewer wide discrepancies between the 
various groups.  2000 could be the year when we see more 
traditional overall advances in equity values, perhaps in the 8%-
10% area for stocks.  Having said that, there will continue to be 
some wild swings in the stock prices of a few select issues.  The 
momentum investor, battered bruised and bleeding, is not dead.  
Certainly, many computers met untimely deaths in the past few 
weeks as non-professional home based day traders hurled these 
stock market slot machines from the balconies of their recently 
built mansions.  But many remain and they will have another run at 
producing some new parabolic, must own, yes they will change the 
world stocks, just not as many of them.

Friday was a pretty decent day for the NASDAQ, and it appears that 
the Index has been able to reverse a trend of the previous two 
weeks which saw big drops on Monday, followed by a nice rally only 
to drop back later in the week.  It is significant that the NASDAQ 
was able sustain the rally late in the week and shrug off the 
negative economic reports that came out on Thursday.  Technology 
stocks were very strong performers last week and the rally 
broadened out to include a fair amount of bottom fishing, 
especially in the Internet sector.  On Friday the NASDAQ gained 
nearly 87 points or 2.3% and closed at 3,860.66.  For the week the 
NASDAQ was up 217 or 6%.  The Index remains down approximately 5% 
for the year and 23.5% from its high set back in early March.

The DOW and the broader NYSE was not so lucky, as investors 
stepped to the side and let stocks drop lower amid inflation 
concerns.  The FOMC meeting is May 16th and the higher than 
expected Employment Cost Index released on Friday cast a pall over 
the interest rate sensitive stocks of the DOW.  On Friday, the DOW 
was down just over 154 points closing at 10734. For the week the 
DOW was down a relatively modest 110 points or 1% and it is now 
down 6.6% for the year. The end of the earnings period coupled 
with inflation fears has resulted in the predictable 
underperformance of the DOW relative to the NASDAQ.  Technology 
stocks are less prone to interest rate hikes due to their lower 
and in many cases, non-existent debt.

Friday saw an incredible rally among Biotech shares as the BTK 
rallied over 60 points and was up a whopping 14%, as traders 
presumably found some bargains among the beaten down shares.  
Other sector winners on Friday included the Semiconductor Index 
(SOX), up nearly 37 points or 3.22%.  The Bank Index (BKX) was 
down 22 points or 2.81%

Friday's bond action had a small upside bias as a little money 
that flowed out of the NYSE found its way into "safer" 
investments.  The 10-year Treasury was up 4/32, closing at a yield 
of 6.22% and the 30-year bond rallied 12/32, closing at a yield of 
5.96%, pulling back after cracking the 6% level earlier in the 

What is a weekend without a Microsoft worry?  For the second 
consecutive week, there was major news concerning the hobbled 
software colossus.  The Justice Department has proposed that MSFT 
should be split into two separate companies.  This proposal was 
submitted to U.S. District Judge Thomas Penfield Jackson after the 
close on Friday.  The plan calls for one company to control the 
Windows operating system and the other to contain every other 
Microsoft business.  Already there is some talk that this latest 
news item could cause some early weakness among technology stocks 
on Monday.  That seems unlikely.  This is hardly a new revelation 
and the move from the Justice Department was widely anticipated.  
It will take years for anything to be resolved and the loss of the 
antitrust case is probably already priced into the shares of MSFT 
and consequently the market as a whole.  MSFT was up a point in 
after-hours trading and competitors RHAT and CORL were also up.

It sure is nice to know that even the supposed "experts" are 
having a really tough go of it recently as renowned investor 
George Soros presided over the resignations of two of his top 
money mangers on Friday.  Assets at the renowned hedge fund firm 
dropped as much as $5 billion in the past month.  The losses can 
mostly be attributed to the severe drops in technology and 
telecommunications stocks.  Soros further stated that the world's 
biggest hedge fund, The Quantum Fund will be restructured and 
renamed.  The new fund will be called The Quantum Endowment Fund 
and will be changed to a "lower risk/lower reward operation".  The 
move is allegedly being made because the fund is too large and is 
watched too closely to operate efficiently.  It is curious to note 
that two of the biggest hedge funds have taken a serious beating 
this year, despite having polar investment philosophies.  Julian 
Robertson's Tiger hedge fund was closed due to heavy losses on 
value stocks and now Soros is taking a 22% bath concentrating in 
momentum stocks.  It is certainly comforting to know that even the 
pros are having a hard time being nimble enough to survive in this 
market. So try not to despair if you have had a couple of tough 
months, there is some pretty impressive company.

New technology ran into old laws on Friday as a US District court 
ruled against (MPPP), stating that the Company's online 
music database violates copyright law.  MPPP closed down more than 
4 1/2 points to $7 a share.

I was quite impressed with CNBC on Friday.  I never would have 
guessed that the weather guy (apologies for not remembering his 
name) could offer such a poignant rebuttal of a corporate earnings 
warning.  American Eagle Outfitters (AEOS) warned that first-
quarter sales look to fall short of expectations because of colder 
weather.  Hogwash was the reply from our erstwhile meteorologist 
who pointed out that this spring saw temperatures across the 
country, on average, to be the warmest in the past 106 years!  
Maybe AEOS has bigger problems, like clothing that bleeds in the 
wash. In all fairness that was one personal experience of this 
writer and hardly a known nationwide problem. Anyway, AEOS dropped 
$2.31 to close at $17 on Friday.

Keep an eye on electronics component manufacturer Solectron (SLR) 
on Monday, which guided analysts a bit lower for the current 
quarter due to a sales impact from the closing of a transaction 
with Nortel Networks (NT).  Estimates for the current quarter were 
$0.22 a share and the Company now expects to report in the $0.20-
$0.22 range.

Two stocks rose on Friday based upon split announcements.  
Chinadotcom (CHINA) was up 10 1/8 to $48 9/16 and will split 2:1 
and Catalina Marketing (POS) announced a 3:1 and rallied 3 1/8 to 
$101 5/16. More details about these splits can be found elsewhere 
on the site.

Two of the more important earnings reports from Friday saw 
declines in the underlying shares of the companies.  Starbucks 
earned 12 cents, which met analysts expectations.  The report left 
a bitter taste among traders who dropped the stock to just above 
$30 down over $6.75 for the day.  Electronic Data Systems also met 
analysts expectations, coming in with earnings of $0.47.  EDS was 
down 3 11/16 points to $68 13/16.

As the earnings period winds down there are only a few major 
announcements coming up next week.  Monday: 
(BNBN). Tuesday: AT&T (T), Forest Labs (FRX), PacifiCare Health 
(PHSY), Storage Tech (STK), Triton Energy (OIL), CDnow (CDNW) and 
Global Crossing (GBLX). Wednesday: Martha Stewart (MSO), Chiron 
(CHIR), Electronic Arts (ERTS) and DOW component Disney (DIS).  
Reports scheduled for Thursday and Friday are unlikely to be very 
influential.  This is not a complete list.  Please call the 
Investor Relations Departments of the companies that you own to 
verify earnings releases.

It's a pretty slow economic calendar coming up this week. A few to 
watch are: Monday, Construction Spending expected to be unchanged. 
Tuesday, New Home Sales expected to drop 19K to 900K and Leading 
Indicators are expected to rise 0.1%. Wednesday, Factory Orders 
are expected to increase 1.5% and the Fed Beige Book is planned to 
be released.  Thursday, Productivity should be up 3.5% and Initial 
Jobless claims should come in around 275K.  The big numbers come 
Friday, with the Unemployment number expected at 4%, Hourly 
Earnings should increase by 0.3% and Consumer Credit should come 
in at $9.5 billion.

Next week should prove to be pretty slow with a slight 
continuation of the upside bias in the tech stocks.  If I am 
correct and we are in a trading range, then look for a little 
backing and filling in the overall market on the way up.  The 
first pullbacks could occur in the secondary Internet stocks and 
the Biotechs, both groups have had a nice rally but should be 
running into some overhead resistance.  Major tech names with 
solid fundamentals could stage some smaller rallies during the 
week.  Expect some sort of small Cyclical and Financial stock 
bounces intraweek as the value investors put a little more money 
to work.  Next week's resistance for the NASDAQ will start at 3900 
followed by 4000.  A close above 4000 next week and we may stage a 
rally to 4150.  There is an uptrend line developing that gives the 
NASDAQ some support at approximately 3700, a good place to go long 
in the event of a downturn.  The MACD turned positive on Friday so 
the possibility of a slow steady climb higher has increased.  The 
DOW appears to be a bit weaker, but in recent weeks we have seen 
the two major indices play a cat-and-mouse game of catching up 
with each other, so look for a day or two where the DOW 
outperforms the NASDAQ.  Resistance is found at 11,250, near the 
high's for last week.  After that point we could find some more 
major resistance at April's high of 11,600.  Support can be found 
at 10,600, the 50-DMA.  After that the support is probably all the 
way back down to 10,000.  The DOW continues to be stuck right 
around the 200-DMA of 10,820, trading approximately 200 points 
above and below that price average.  400 points is a tradable 
range and aggressive players may want to utilize it.

Good Luck! And may all of your trades be winning ones!

Jim Booth

Friday's Split Announcements 

Friday, April 28, 2000, During Trading

Webb Interactive Cancels Stock Split

Webb Interactive Services Inc. (Nasdaq: WEBB) decided against 
their previously proposed 2-for-1 stock split at the Annual 
Shareholders Meeting held April 27th. The Board of Directors 
agreed to postpone the action due to current market conditions, 
however, shareholders still agreed to increase the Company's 
authorized common shares to 60 million.

For the complete announcement, please go to:

Sector Watch

As of Market Close - Friday, April 28, 2000 

                   Key Benchmarks
Broad Market       Bearish/Bullish  Last    Posture/Since  Alert

DOW Industrials   11,000  11,400  10,734    BEARISH   4.28   * 
SPX S&P 500        1,500   1,550   1,452    BEARISH   4.14  
OEX S&P 100          800     850     781    BEARISH   4.13  
RUT Russell 2000     550     600     506    BEARISH   4.14  
NDX NASD 100       4,000   4,500   3,773    BEARISH   4.13  
MSH High Tech      1,000   1,150     978    BEARISH   4.13  

XCI Hardware       1,600   1,700   1,519    BEARISH   4.13  
CWX Software       1,500   1,670   1,258    BEARISH   4.04
SOX Semiconductor  1,200   1,300   1,172    BEARISH   4.13  
NWX Networking     1,070   1,190   1,021    BEARISH   4.04
INX Internet         800     940     642    BEARISH   4.04

BIX Banking          530     620     540    Neutral   3.16
XBD Brokerage        500     580     472    BEARISH   4.14  
IUX Insurance        540     620     589    Neutral   3.16

RLX Retail           900   1,000     908    Neutral   4.13 
DRG Drug             355     385     375    Neutral   4.28  *
HCX Healthcare       710     775     755    Neutral   4.28  *
XAL Airline          130     155     143    Neutral   3.10
OIX Oil & Gas        265     300     284    Neutral   3.16
Sector Watch Alert 
Technology stocks closed out the week on a positive note, as the
NASDAQ added another +2.30% in gains on Friday. Leading sectors 
on Friday include Internet (+5.53%), Semiconductors (+3.22%), and
the Russell 2000 (+2.36%). For the week, Semiconductors gained 
+14% while the Internet sector gained +11.6%. With this most 
recent action, we have lowered the Dow to Bearish, and the Drug
and Healthcare sectors to Neutral from Bullish.

This section of the investment advisory website highlights's stated Sector Watch across broad market indices 
and industry sectors. is the only website that 
states and regularly updates its Sector Watch across industry 
sectors.  Investors who reference this section first before 
planning their trades will gain a decided advantage. The time 
horizon of our stated Sector Watch is generally 2-3 weeks and is 
based upon a number of fundamental, technical and sentiment 

An important feature to our stated Sector Watch is the key 
benchmark levels. These levels represent important near-term 
support and resistance points. By viewing the sliding bar for 
each index, investors can quickly view the relative strength of 
our position and better anticipate when we are likely to change 
our Sector Watch. These benchmarks are determined using technical 
and sentiment indicators. It's important to realize that our 
Sector Watch may be contrary to the overall trend when compared 
to longer-term moving averages. This is because our stated Sector 
Watch is designed to help investors take positions before others 
see major trend reversals. For each sector, we highlight the index 
symbol, key benchmarks, last level, stated Sector Watch and the 
date we changed our position (since).  

For industry sectors signaling BULLISH, investors may want to 
consider long/call positions. For sectors signaling BEARISH, 
investors may want to explore short/put positions. For sectors 
flashing Neutral, investors may want to develop hedge positions.  
As investors allocate capital, we encourage BULLISH traders to 
pursue industry sectors that are trending higher and trading above 
moving averages and BEARISH traders to pursue sectors trading 
below declining moving averages. Investors can view these moving 
averages over a six-month chart by double clicking on the industry 
indexes links within the matrix.

Event Calendar 

For the week of May 1, 2000


Auto Sales               Apr    Forecast:  6.9M    Previous: 6.881M
Truck Sales              Apr    Forecast:  8.1M    Previous: 8.044M
NAPM Index               Apr    Forecast: 55.5%    Previous:  55.8%
Construction Spending    Mar    Forecast:  0.0%    Previous:   1.5%


New Home Sales           Mar    Forecast:  900K    Previous:  919K
Leading Indicators       Mar    Forecast:  0.1%    Previous: -0.3%


NAPM Service             Apr    Forecast:   N/A    Previous: 64.0%
Factory Orders           Mar    Forecast:  1.5%    Previous: -0.8%
Fed Beige Book           ---    Forecast:  ----    Previous:  ---- 


Productivity             Q1     Forecast:  3.5%   Previous:   6.4%
Initial Claims           04/29  Forecast:  275K   Previous:   283K


Nonfarm Payrolls         Apr    Forecast:  325K   Previous:   416K
Unemployment Rate        Apr    Forecast:  4.0%   Previous:   4.1%
Hourly Earnings          Apr    Forecast:  0.3%   Previous:   0.4%
Average Workweek         Apr    Forecast: 34.5H   Previous:  34.5H
Consumer Credit          Mar    Forecast: $9.5B   Previous: $12.0B
Week of May 8th

05/09 Wholesale Inventories
05/11 Retail Sales
05/11 Retail Sales ex-auto
05/11 Initial Claims
05/11 Export Prices ex-ag.
05/11 Import Prices ex-oil
05/12 PPI
05/12 Core PPI
05/12 Business Inventories
05/12 Michigan Sentiment


Ericsson Blows Away Wall Street Estimates
By Matt Paolucci

Telefon AB L.M. Ericsson (ERICY), the Swedish telecom
equipment maker, said its first-quarter pretax profit soared
roughly 370 percent, blowing by analysts' expectations, as
sales ballooned and expenses fell.

The world's No. 3 cellular-phone maker said income before tax
rose to $682.7 million from $145.5 million in the first three
months of 1999, well ahead of expectations of $492 million.

For the complete article, please go to:

Monday's Expirations by Payable Date

Micron Technologies (MU) splits 2:1

===================== Plays

The PLAY LEGEND: Split Run Play Recommendations.

Split Run Play-of-the-Day is our number one split run play 
  recommendation for the following trading day. 
Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Drops are closing plays that we feel have lost the advantage.

You will see:
Stock Symbol, Company Name, Closing Price, (change for the week)
Picked at date and Change since picked 

BoD = Board of Directors meeting
ADV = Average Daily Volume
dma = daily moving average

>>at the website, we have comprehensive profiles 
for each stock that we are playing or have played in the past, as 
well as hundreds of others. Please take the time to visit the site 
to view the profile of the stock(s) you wish to learn more about. 


JNPR - JUNIPER NETWORKS INC. $212.68 (+26.56)

Please see details in the Split Run Play Updates section below.

Picked on April 27th @ $208.94
Change since picked +3.74

Chart =

New Split Run Plays 04/30/00


Split Run Play Updates 04/30/00

JNPR - JUNIPER NETWORKS INC. $212.68 (+26.56)

Juniper Networks provides high-performance IP networking systems 
that enables service providers to meet the demands of the rapidly 
growing Internet. Last week JNPR and Ciena Corporation (CIEN) 
successfully completed testing of interoperability between 10Gbps 
optical and IP networking platforms. The union between the two 
systems makes 10Gbps next-generation optical networks and pure 
10G IP service over glass, a reality for service providers. JNPR 
enjoyed a profitable week trading up almost 70 points from 
Monday's low at $155. This Thursday, May 4th, shareholders will 
meet for final approval of the 2 for 1 split scheduled for June 
16th. Support is now the 20-dma at $205, then the psychological 
$200 mark. Resistance is overhead at the 50-dma at $240. Friday's 
volume was slightly above average at 3.6 million shares. We would 
like to see more conviction take the stock higher. Perhaps 
anticipation of this week's meeting with bolster enthusiasm. We 
would look for a bounce off $200-$205 on good volume as a good 
entry point. The last 4 trading sessions the stock had traded up 
at least 10 points during the first hour of trading. Be careful 
to confirm the momentum in the NASDAQ along with the Internet 
sector before entering a new position. Friday's NASDAQ volume was 
the 7th session of below-normal volume and thus the rally is 
still suspect. Place stops just below $200 to limit losses.

Picked on April 27th @ $208.94
Change since picked +3.74

Chart =


NEWP - Newport Corporation $121.31 (+14.56)

As the optical sector is once again starting to come back to 
life, we're looking at NEWP to outperform many of its peers. Our 
reasons for this are both fundamental and technical. 
Fundamentally, the company just reported its strongest quarter 
ever, more than tripling profits. Importantly, the company 
actually has earnings, unlike many of its optical competitors. As 
for the chart, NEWP just broke above its down trendline, which is 
a bullish indication that further advances are more probable. 
Currently, the stock advanced nicely on Friday, soaring near its 
50-dma during the day, before closing at $121.31. The stock will 
be faced with initial resistance along the 50-dma ($130.72) 
before challenging further opposition at the century and a half 
mark. Good volume (350k or better) will likely have to be 
present, in order for NEWP to stage further advances through 
these resistance points. As for support, look for the down 
trendline to now provide support ($114-115). Just lower, the 20-
dma ($110.29) should also help to brace any declines. However, 
given the volatility of this sector, we're recommending that 
stops be placed below the 5-dma ($109.06), to protect against a 
meltdown.  Continue to use trailing stops to lock in profits.

Picked on April 27th @ $116.25
Change since picked +5.06

Chart =


PAYX - Paychex $52.63 (+1.88)

A very small pullback continues for PAYX but we still want to 
hold this position because we suspect that the stock will 
strongly outperform the rest of the market in the event of 
another pullback.  PAYX is a core long-term holding for many 
institutions because the stock has had a very solid performance 
record for years.  As the leader of the payroll management 
business, PAYX has greatly benefited from this surging economy 
that has seen an incredible rise in the creation of small to 
medium sized businesses, exactly the targeted demographic for the 
efficient services that Paychex offers.  PAYX has one of the most 
impressive split records among all public stocks.  PAYX has 
announced a 3:2 split for six consecutive years and sure enough 
another split was announced on April 13th.  The payable date for 
the latest split is May 22nd.  Because of the split and a solid 
long-term uptrend we expect that PAYX will be able to climb into 
new high territory in the coming weeks.  PAYX successfully tested 
the 50-DMA on Friday and closed above it.  The average is at 
$50.50 and we suggest protecting yourself with a stop just below 
it at $50.  RSI is right in the middle and is not offering any 
indication.  The MACD is positive however, which offers us some 
encouragement that a rally may be soon at hand.  We will be 
exiting this position no later than just before the payable date 
of May 22nd.

Picked on April 25th @ $55.31
Change since picked -2.68

Chart =


RMBS - Rambus Incorporated $230.00 (+62.50)

The penetration of Rambus DRAM (RDRAM) into the personal computer 
market this year, should create quite a stir for other 
manufacturers in this market. Having greater scalability than 
SDRAM and DDR DRAM providers, RDRAM is much more adapt for 
meeting the needs and speeds of future microprocessors. 
Understanding this competitive edge, Intel has decided to use 
RDRAM in its high scale i820 chipset. Undoubtedly, this helped 
RMBS shares run wild earlier in the year, gaining and unreal 
403.56 points! Recently, a month long consolidation has begun to 
show new life. Advancing from a strong gap on Friday, shares were 
aided by a further progression in the NASDAQ composite. Adding 
18.19 points, the stock continued its march to resistance along 
the $250 mark. More strength will likely encounter added 
resistance at the 50-dma ($268.40). Look to take profits at 
resistance points, or consider adding quick positions when prices 
advance through these levels. On the downside, anticipate firm 
support at the double century mark to remain intact and offer 
good intra-day buying points. Secondary support should be 
followed at the $175 mark, bolstered by the 100-dma of $173.76. 
The volatility of this stock is tremendous, as such; don't 
hesitate to lock in quick gains as profits. Keep tight stops 
below support levels to avoid excessive losses. 
Picked on April 27th @ $211.75
Change since picked +18.25

Chart =


TFS - Three-Five Systems $86.50 (-5.87)

Residing on the NYSE was an advantage for TFS all week but it 
appears that it was a handicap on Friday as sellers took control 
of the Exchange and TFS suffered a sizable round of profit 
taking. A small amount of concern probably developed when the 
stock rallied to $99 but failed to move into triple digits on 
Thursday.  The key factors that initially attracted us to this 
play still exist.  TFS is a major supplier of LCD and LED 
products that are widely used for office product displays and 
mobile devices.  Sales of the latter have been huge and with new 
products coming out all of the time we fully expect TFS to 
continue lighting up the bottom line with solid earnings.  One 
new product that seems to have piqued the interest of investors 
is TFS's microdisplay technology which is currently under 
development at Nikon for use in the next generation of rear-
projection televisions and computer monitors.  There is also a 
split coming up.  The 3:2 split was announced on Tuesday and will 
be payable on May 12th.  Friday's selloff may have stopped some 
of you out at the suggested price of $89.  The drop may be due to 
the news item that TFS intends to sell 2.6 million shares in a 
secondary offering after the split.  The initial suggested 
offering price is $51.67 per share.  That price could increase if 
the stock remains strong.  Even the strongest looking stocks have 
turned on a dime in this market and taking profits is never a bad 
experience.  If you are still in this play we suggest placing a 
stop at $80, which is just below the 10-DMA.  New positions can 
be placed as long as the stock stays above $81 in the hopes that 
there will be another move towards $100.  Although still 
positive, the MACD may be a bit high here and RSI is a bit 
overbought.  Because of these factors the pullback was not 
terribly surprising.  That said, TFS is still in a very strong 
uptrend.  We will be exiting this position before the May 12th 
split date.  

Picked on April 25th @ $81.88
Change since picked +4.62

Chart =


TXN - TEXAS INSTRUMENTS, INC. $162.88 (+17.88)

Yee-Haw! Texas Instruments enjoyed a great week along with many 
other Semiconductors stocks. As old economy stocks and those most 
sensitive to higher interest rates suffered, technology stocks 
like TXN had a glorious week. As a worldwide supplier of 
semiconductors and semiconductor related products, TXN is nestled 
in the leading industry in this current market. According to an 
article in Investor's Business Daily on Friday, the place to be 
during a market rotation is in the industry group, which is 
flexing its muscles. This theory of sector rotation has been back 
tested back to the 1960's with great accuracy. In Thursday's 
report, we noted that TXN would have to retest $169 as its next 
resistance. On Friday it was tested but not conquered on lower 
than average volume of 5 million shares. We therefore keep $169 
as our resistance. Support is the now 50-dma at $160. A good 
bounce off $160 or a strong move through $170 would be good entry 
points. Confirm market direction before entering a new play. We 
will have a stop in place just below the 50-dma at $159. 

Picked on April 25th @ $152.00
Change since picked +10.88

Chart =


ZOMX - Zomax Incorporated $47.31 (+4.37)

What makes Zomax such a successful company is their ability to 
offer large-scale companies all of the little important things 
that help their business to run. For example, when a ZOMX 
customer like Microsoft, needs to ship out a software upgrade, 
ZOMX will analyze and perform the warehousing, distribution and 
fulfillment programs to ensure a "just-in-time" product delivery. 
Investors who have seen the phenomenal growth of ZOMX (225% 
increase in first quarter earnings) have recognized the 
importance of their services to large businesses. Adding an 
additional 4.37 points this week, shares managed to base their 
recovery off strong support at the 200-dma ($39.46). Light 
support should now be found near the $45 level, as reinforced by 
the 5-dma ($44.11). As for the upside, if firm resistance along 
the half-century mark, bolstered by the 20 and 100-dma's ($49.82 
and $49.53) can be penetrated, then anticipate a possible run to 
more resistance along the 50-dma ($53.30). Still higher, 
resistance at the $60 level should be expected to be firm. 
Remember to confirm strength in the broader market prior to 
opening new plays. Monday's payable date of May 8th will require 
us to exit by Friday's close (5th).

Picked on April 23rd @ $42.94
Change since picked +4.37

Chart =

Split Run Play Drops 04/30/00

GE - General Electric $157.25 (-1.25)

General Electric is currently trading off of the long bond. The 
Company's exposure to the financial sector has hurt the stock in 
light of the recent inflationary economic numbers. On Friday, 
shares of GE traded below $157, triggering our stops at $156.88 
and we are dropping the stock tonight. If you still have open 
positions on GE, set tight stops under $156 and look for an exit 
on Monday. 

Picked on April 25th @ $166.00

Profit/Loss = -9.13 (-5%) (Stopped out Friday at $156.88)
Best Profit = +1.94 (+1%)

Chart =


MU - MICRON TECHNOGLGY, INC. $139.31 (+14.06)

All good things must come to and end. So it goes with Micron 
Technology as we are dropping this play ahead of the split on 
Tuesday. Monday will be the pay date and our standard date to 
exit plays. Today MU challenged its recent high of $143.13 but 
missed by less than a dollar on lower than average volume at 4.7 
million shares. Despite the Semiconductor Industry currently 
leading the market, rather than risk playing through the split; 
we will look for other opportunities in this sector. We will 
retire MU for now and will advise you in the future of any 
trading opportunities as they develop.

Picked on April 23rd @ $125.25

Profit/Loss = +14.06 (+11%)
Best profit = +17.00 (+14%)

Chart =

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The newsletter picks are not to be considered a recommendation 
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in making an informed decision regarding how to trade stock
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editors and staff of may own, buy or sell 
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staff makes every effort to provide timely information to its 
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