and is quite symbolic of the overall market...This is a large cap rally and has left the small caps behind for the most part...
Heavy selling late in the day looked like someone pushing a large block... The why's I don't know..... but I thought that this is bringing on a S-T buying opportunity... If it touches 22, I will be adding to position...
As you know our favorite sectors are Biotech and telecom right now. Tuesday was a horrible day BGEN, AMGN, and IMNX managed pretty good gains. With some strength in the market them and VISX should go very well. Especially watch BGEN to go for more. We like VGIN and ONXX longer term here.
Other news: Yesterday the market decided to have a rebound rally, and it felt good for a change. The question is will it hold today? We don't think today will carry to much to the upside simply because we may see volumes fall off. So be careful today as we could get "whip sawed" during the day. One of the biggest headlines today involves a company that is often featured on our NewsLetter...Level Three Communications (LVLT) has aligned with Broadcast.com (who is being bought by Yahoo) to provide full motion video. IBM split last night so take a look at them and watch for any post split pop. (Yesterday they gained about 14) NXLK has received a buy rating. CC has been named a "focus one " stock today. Rocky Mountain Internet (RMII) has announced they are partnering with MicroSoft and Intel to provide complete e-commerce packages to medium sized business. Yesterday the rumors swirled again that Chase (CMB) may be acquiring Merril (MER) which gave MER a huge day. Take a look and see if any of that excitement wears off today. Pacific Sunwear (PSUN) who just announced a 3 for 2 split on Tuesday says they are going to launch an online store in June. ABTL says they are selling one million worth of cars on line every HOUR! The 1st Quarter GDP number came out basically in line, at 4.1% That was a non event for the long bond, and it brought our stock futures up from negative 4 to negative 2.
ABOV has received a strong buy rating and a 71 dollar target COST has posted 46 cents versus 38 cents PRGY is getting all of Cable and Wireless's USA dialup internet business Time Warner and SYBS are in a marketing deal to "cross offer" products Keep an eye on PVN because this gets interesting. PVN was a favorite financial of ours and they got hammered over earnings statements and a class action lawsuit. Today they came out saying 99 and 2000 projections are correct and it is trading up pretty big on instinet.
LSI has been upgraded to a buy and a 50 dollar target today CIV has been given a buy rating and this one is interesting. Evidently they have been fairly quiet about their telecom value and now analysts think its pretty substantial. FLR has been upgraded this morning MTIC, CPWR have been initiated with a buy rating Volumes could be low ahead of the holiday weekend, so be careful .. IREG gets a buy WEBT gets a buy PILT is started as a strong buy NEON gets a strong buy SDLI gets a strong buy rating.. IMCL gets a strong buy DRMD gets FDA approval this morning.
Memorable Plays: We suggested NSOL, CNET, and CMGI on 3/8/99 (+40), (+40), and (+47 1/2) respectively. Not to mention EPAY on 3/15/99(+21 57/64).