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July 21, 2000

Market Data as of Close, 7/20/00:

o Dow Jones Industrial Average: 10,843.87 up 147.79, 1.38%

o Nasdaq Composite Index: 4,184.56 up 128.93, 3.18%

o S&P 500: 1,495.47 up 13.51, 0.91%

o TSC Internet: 865.15 up 32.09, 3.85%

o Russell 2000: 534.75 up 6.89, 1.31%

o 30-Year Treasury: 106 07/32 up 1 19/32, yield 5.814%

Companies in Today's Bulletin:

Lucent (LU:NYSE)

Munder NetNet

Federated (FD:NYSE)

Target (TGT:NYSE) (PPRO:Nasdaq)

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TheStreet Recommends

Ariba (ARBA:Nasdaq)

Commerce One (CMRC:Nasdaq)

In Today's Bulletin:

o The Chartist: The Daily Chartist: Don't Confuse Selling With Profit-Taking

Mutual Funds: Timing Is Everything: Munder Sets Big Private Deal With Soaring

The $30 million private placement was at a premium to the stock price -- at least, before Thursday.

Retail: How E-Tail Stocks Might Get Their Groove Back

A few factors that could spark a summer sector rally.

Retail: Broken Fingerhut Hammers Federated Stock

The retailer also continues to have problems grasping an Internet strategy.

Bond Focus: Greenspan's Neutrality Unleashes Huge Bond Rally

Markets that were braced for a warning about additional rate hikes breathed a big sigh of relief.


Telecom: Lucent Gets Lashed After Another Shortfall, and Heads May Roll

Analysts are saying the phone-equipment maker's woes point to a leadership failure.

Internet: A Percentage Game: Bests Ariba

And says it'll turn profitable two quarters ahead of expectations.

Telecom: Lucent Spinoff May Stem Engineering Attrition

Still, some observers aren't sure it's more than a fig leaf.

Stocks to Watch: Stocks to Watch Friday: AOL, Sun Microsystems, Agilent, CNet, Palm, More

The Chartist: The Daily Chartist: Don't Confuse Selling With Profit-Taking


Helene Meisler

Special to

7/20/00 9:33 AM ET

July 20, 2000

When I first entered this business, I'd hear the phrase "profit-taking" and think it was just a euphemism for selling. Sure, when you take a profit (if you're long) you are in fact selling, but that's a much different sort of selling from what we see when investors are doing some serious selling.

The difference is profit-taking brings the winners back down, while real selling happens when stocks that are already down keep going down. What we've seen over the past few days is profit-taking, and profit-taking is what keeps a market healthy; it shakes out the weak holders. If we were seeing real selling, even the dogs would keep going down. That's not what's happened, as many of the dogs are simply marking time at their lows right now. The most obvious example of this is the lack of expansion in the stocks making new lows.

When we're finished shaking out the weak holders, there will be room to move higher with ease. Many of the big averages, including the

Nasdaq Composite Index

and the

S&P 500

have fallen right back into their original trading ranges, most now sitting back at the top of those trading ranges, which may begin to provide some support. However, the oscillators suggest that there is still some more time before we can call this market oversold. I'd prefer we reached an oversold condition before calling an end to this correction phase.

Overbought/Oversold Oscillators

For an explanation of these indicators, check out The Chartist's


Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she was long Amgen, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

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