Archive newsletter

chartpattern.com/archive-newsletter.cfm 2 January 2000

Hello out there stock fans. A very good end of the day on Friday as end of the quarter and
year end portfolio dressing helped push up our favorite stocks. However the biggest event
turned out to be no event at all, as Y2K proved as the market said it would be by its
actions, a none event after all.

Hardly a single Y2K problem to be found anywhere in the world. How Wall Street will
react come Monday morning could be very exciting as there are billions of dollars that
have been waiting on the sidelines just for this very day. Over the course of the next few
weeks, it should be interesting to see how the market reacts to these huge inflows. We
could see some serious short covering as well.

We also have earnings due out over the course of the next 6 weeks and with stocks at
record levels of extension, it should be "look out below" as institutions unload into "better
than expected" earnings news on an unsuspecting and frothy public that be buying good
news. This scenario repeats itself over and over again.

As we all know our model portfolio stock QCOM is having a super run that has given our
model portfolio and huge boost. The 1999 model portfolio that started on February 22,
1999 with just $100,000 on margin is now at $1,833,060 or over 1800% in less than 1 full
year. I invite you to take a full review of it. This should help you in understanding what it
takes to get these returns. In essence what I do is to cut the losers fast and to reinvest
those dollars into potential leading stocks that are on the move. Remember holding losers
is exactly that and your portfolio will reflect it.

In this 1999 portfolio there are still four stocks. Foundry Networks (FDRY), Harmonic Inc.
(HLIT), Ariba (ARBA) and powerhouse Qualcom (QCOM). FDRY is due to have a 2 for 1
split on January 10 so its still looks good here and HLIT is still climbing out of its base and
is acting just fine. ARBA and QCOM are ready to be ejected from the model portfolio
because both are very extended and are due for their post split blues.

I will sell QCOM on this Monday when it hits $180. I will also sell ARBA when it hits $185.
If there is any changes during the day tomorrow, I will e-mail you to this effect.

We also saw the new year 2000 model portfolio stock Brocade Comm (BRCD) finally
break out with its $12 move on Friday and close on its high for the day on light holiday
trading. I will be looking for much higher highs on this stock over the next few weeks.
Portal Software (PRSF) should get going this week I hope, and remember, I will add it to
the year 2000 portfolio when and if it hits $113. Should this happen this will give us two
stocks in this portfolio BRCD which we already have and then PRSF.

1/4
Due to the massive run up we’ve had over the past 8 weeks there are almost no stocks
with good which to show you today. There are a few abbreviated bases so I will show
them to you tonight as well as one or two others with good bases but which are not
leading stocks.

Copper Mountain Networks (CMTN)

This stock was one of our former model stocks before it broke down and was sold at a
small loss. Earnings are good, but I hear competition is close by. Revenues are up 476%
to $32 million while earnings are up to .08 from a year ago deficit. There are 24 million
shares that float so this stock could move well when and if it gets going. It’s in the same
group as QCOM and JDSU. Buy point is at $50 to $53.

Here are some stocks for the active trader.

Exodus (EXDS)

2/4
Adaptive Broadband (ADAP)

Euro909.com

3/4
Here are some other potential movers. HLIT at $98, FFIV at $117, ETEK at $136, VERT
at $171, WEBT at $85, YESM at $35, FCST at $133 or CMGI at $285. FCST is being
bought by CMGI so it moves with CMGI at a cheaper price, ENTU at $67.

Let’s hope we have just a fraction of the year this year that we had this past year folks.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

P.S. Again if things change tomorrow on ARBA or QCOM I will keep you updated by e-
mail.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 January 2000

Hello out there stock fans. A very happy new year indeed as stocks were gapping wildly
at the open today. Top prize in this category went to Emulex (EMLX) as it gap some $65
on someone’s buy recommendation. It quickly got hit hard and it sold off down to $117
before popping back up to close the day at $127 and up $14 for the day.

Also gapping big today were model stocks QCOM and ARBA which I disposed of at the
open per my e-mail which I sent 20 minutes prior to the open, noting that I would sell
these two stocks at the open into the strong gap. I know many of you get the e-mails late
due to bulk e-mailing, so I will lower my exit point on these two to $5 below the opening
price so you are more in line with the model portfolio. So QCOM is out at $194 and ARBA
is out at $190.

As you know by now, CMGI and YHOO and a few others had very strong outings today
and CMGI and FCST were emphasized in last nights letter with a buy point some 40
points lower than today's close on CMGI. Last week YHOO was highlighted the same
way and this was my favorite stock to focus on in last Thursday’s all day chat that I had
with many folks in the chat room.

As the market moves up to over extended levels we can see how we are beginning to
remove extended stocks from the model portfolio and thereby start the process of
reducing risk. This helps us lock in the gains should the market turn suddenly.

AS you know EXDS and CMTN were on the move today with EXDS looking and
performing best. Here are a few potential movers for tomorrow.

Red Hat Software (RHAT)

1/3
Allaire (ALLR)

Magic Software (MGIC)

2/3
Here are other possible movers. CLRS at $81, CMRC at $217, FCOM at $27, FFIV
maybe on the move again at $124, CMDX at $120, JNPR at $351 and a 3 for 1 split is
due soon.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 4 January 2000

Hello out there stock fans. A sudden turn in the stock market today like I had mentioned
we might get soon in last nights letter. Seems the good news about Alan Greenspan
being re-appointed today for another 4 years was the good news the market needed to
start a selling spree.

Tomorrow could be a real shocker as stocks could possibly open again with large gaps
down. This should instill fear and panic in many investors/traders that should bring on a
wave of panic selling. After this wave of selling is over with by say 7:30 am PST or there
about, stocks may turn and stage a strong rally from lower levels.

Today it looked like a good thing to have sold QCOM and ARBA during the day yesterday,
while the other three stocks left are still holding up good. Foundry Networks (FDRY) is
fine for now and I will hold it until after the split on Monday. BRCD is stumbling and we
shall set stops at the $145 area May I remind you to not pre-set stops and to review this
stocks action before you sell as it could easily snap back and probably will. Harmonic
looks OK still and has not violated any trend lines or areas of support. Stops for HLIT are
at the $75 area for now.

If any of you are on margin, may I remind you to review the Member Testimonials section
in the web site on the front page. There you will see one members trails with a broker and
margin just last year. I myself have had this happen many times in the past without the
broker, so I can assure you, I speak from many many years of trail and error. This is not
the time for margin or being fully invested without margin. The model portfolio is about 75
to 80% in cash right now and so am I after today.

Tonight let’s see where we are in the market right now. Here are a number of charts to
see support on the NASDAQ and some possible stocks to short soon. Please be very
careful on the shorting folks. It’s without question the hardest thing to do. Do not short a
stock that’s been down 15 points or so, but short as the stock rallies up to a broken trend
line and then stalls. This takes years of trial and error and you must be on real time
quotes.

For those of you that are day type traders and want to give it a whirl, try paper trading first
and then maybe try one hundred shares until you get good at it.

Here is the NASDAQ with it’s rising trend line which should hold on the first go round
tomorrow.

1/4
Here are possible shorts in the future, but probably not yet. I personally wait for a break of
the major trend line and then the eventually snap back up to the underside of the line.
Remember the trend line is support until broken at which time it then becomes resistance.

2/4
As of right now BVSN looks best but remember, earnings are due out soon and internet
stocks could soar giving you the feeling you are trapped before settling back.

Cash is king to me right now folks.

I will be back tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 January 2000

Hello out there stock fans. A very harrowing day today as stocks were sliding down faster
than an Oyster on the half shell at happy hour. CMGI down as much as $50 before its
slide stopped with a buy program that kicked in 40 minutes after the opening bell stopping
this and many stocks from sliding further. This was followed by another buy program at
11:00 Pacific Standard Time (PST) which lifted many stocks to be positive for an hour or
so before many settled to close in the red or negative for the day.

This buy program kicked in long after the NASDAQ had broken support of the rising trend
line which stood last night at the 3787. I generally like to see the trend line holding with no
violation at all, but with so many on-line "investors" pre setting stops, the market just
seems to cascade down as these stops are triggered. Of course panic selling by rookie
traders/investors exacerbates this too.

This cascading effect allows market markers to pick up stock cheaply so they can sell it to
you later after the buy programs kick in at higher prices.

This brings to mind our stops on BRCD that were not to be pre-set by our members, but
had to have been as when this area was approached by the stock, it quickly sank and
stops were triggered sending the stock to $135. The stock quickly recovered to over $170
by the end of the day costing everyone a lot of money. In the future I will no longer pre-set
stops unless I think the stock is not acting right. Again there are no more pre-set stops on
any model stocks.

This stock now has to be checked out of the model at $145 to accommodate those that
sold. I for one sold out today at the $162 area after it snapped back. This stock along with
many other networking stocks acted well today considering the day we had and BRCD
could easily see new highs on positive market days.

Going forward we will see many stocks moving higher on news such as earnings while
many stocks will be moving lower as lower lows and lower highs will set in. These lower
lows and lower highs will give many of you at times, the feeling that I’m wrong and you're
on the way to greater profits and possibly a stock that’s going to be a huge winner.
However in just a few more days it will be much lower than when you bought it. This is
because your stocks are no longer making new highs but merely snapping back.

Going forward I use my 50/50 rule. If half your stocks go up and half are going down by
equal amounts, you have gone nowhere in your portfolio. Its like trending water. The only
way to stay ahead of the game is to make sure your stocks are making new highs on a
constant basis and quickly cutting stocks that are getting underwater.

1/3
I also want to remind everyone that the big money comes when the market is coming off
of lows after a correction and not after an extend run. Please be careful going forward as
returns are going to be minimal at best.

I have a chart tonight to show you of a possible mover for those of you that want to see it.
Remember I do no recommending of stocks. I only show you the charts and technical buy
points.

Here is a chart of the IIX which is the AMEX internet index. It too is beginning to show
signs of fatigue.

I will have more on Sunday

2/3
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 January 2000

Hello out there stock fans. Wasn’t that a special week last week. We just love it when our
stocks are going up 30 to 50 points a day, but when things reverse and stocks are
dropping 30 to 50 points a day, it is one of the most frightening experiences I know of.

At any rate a major break of the trend is firmly in place and the snap back that we had on
Friday is almost complete. This snap back is one of those funny things that make you
believe it was all a joke and the market will return to its upward trend. This is merely a
trap in my opinion and after a few more days or a week of upward backing and filling we
should see more selling that should take the NASDAQ and the various group specific
indexes such as the Goldman Sachs internet index (GIN) lower.

Most of the leading stocks that have led this massive NASDAQ advance over the past 3
months like Qualcomm (QCOM) now have lower lows in place. Over the next few months
is quite possible that this stock and other market leaders like ICGE, PPRO, ITWO, CMGI,
YHOO, AOL, CMRC, VERT, VRSN could see corrections of up to 50%. This 50% number
we’ve seen many many times on these big internet movers in the past, so its not out of
the question that we may see them again soon.

As you know we have earnings due out this Tuesday on Yahoo! (YHOO), and as we’ve
seen every time YHOO announces earnings, there has been large price swings up and
then a hard shot to the downside as many institutions are selling the frenzy or better than
expected earnings.

It’s buying better than expected earnings on many stocks that have been the downfall of
many investors. It my opinion its time to sell the earnings on most stocks and as you
know by now, I’m about 85% in cash. So for me its close to being time to short the better
than expected earnings on selected issues.

As I scan the landscape of stocks in my data base today, I see many stocks with nice
looking charts and many of them are in the Biotech field with many other stocks of lesser
quality in the telecomm area. These stocks are sure to make new highs and there are
going to be select stocks of lesser quality that will fly 30 to 60 points on news. However
they won’t be leaders that will make you the big money as did a CMRC,QCOM or ICGE
did.

So lets see some charts of various indexes to see where we are in this move. All of these
indexes have broken there trend lines and are in snap back mode.

1/5
2/5
Maybe one or two make new highs?.

Now here are some pictures of some stocks on the move. All have been listed here
before with break out points.

3/5
Here are some potential shorts

4/5
I will have more tomorrow and I may have more on the selling of FDRY and or HLIT from
the model portfolio.

Daniel J. Zanger

Chartpattern.com

P.S. I will be on KJLA tomorrow with Skip in the LA area at 2pm on You're on the Line.
See channels 19, 20 57,65 in your area.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 January 2000

Hello out there stock fans. A very powerful snap back today sends the NASDAQ soaring
past its snap back point and ascending trend line break area of last week. This basically
re-establishes the trend in the upward direction once again. A rare feat of strength that I
have seen only once before in the past 10 years.

This run was lead by the Biotech’s and an assortment of strong and very extended
internet companies. I see many of the indexes I listed here last night have closed above
their broken trend lines and this suggest higher highs to come in selected issues.

I for one will be very careful in entering into new long positions as the NASDAQ is about
40% above its 200 day moving average line. For many years the NASDAQ never got
more than 20% above this bench mark without a correction setting in bringing the
NASDAQ back to the 200 day or very close to it. However if there is going to be some
stocks moving higher, I will list them here. I still feel risks are very high.

Here are some charts of some potential movers for tomorrow. I did buy a very little
amount of BRCD at the close and only got a few shares filled.

1/4
2/4
Here is the NASDAQ with its break away gap.

Here are some potential movers for tomorrow. SPYG at $47, SONE at $82, PLUS at $57,
NOPT at $78, BSQR at $46, EMLX at $126, FMKT at $245, IDC at $62, VERT at $158.

Here are a list of some Bio’s to look at and download. ICOS, CEGE, CELG, CEPH, CLTR,
CVTX, GENE, GERN, GILD, MAXY, IGEN not to mention last night pick of HGSI which
moved 25 points today and AFFX which was listed here a few weeks ago at $120 or so.

HLIT and FDRY are still in the model portfolio, and FDRY quickly sank to below the lower
trading band. It should pop back soon. The 2 for 1 stock split did this stock little good so
far.

3/4
I have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 January 2000

Hello out there stock fans. A very nice reversal today with many stocks reversing
yesterdays strong gains and closing down $8-$25 on fair volume. One of the leading
indexes of this move The Goldman Sachs Internet Index (GIN) could not penetrate the
ascending trend line at the 730 area which I showed you yesterday. When it was obvious
that this line could not broken convincingly to the upside by mid-day, stocks reversed
trend and started to trade off.

The fact that this index and a few of the others can’t get above their ascending trend lines
that were broken last week, now locks us into a descending trend which could possibly
last another 8-12 weeks, maybe longer.

Except for a few stocks, the majority of stocks now have lower highs in place and a few
have lower lows in place. Technically speaking this sets the frame work for lower lows
and lower highs for the corrective action that is under way for these extremely over
extended high flying stocks.

It’s also possible that a double top has also been put in place on the NASDQ and the
furious blast of the NASDQ yesterday to take us up some 170+ points was nothing more
than a shake out to fool us. The snap back to be sure was exacerbated with large
amounts of short covering and the deal with Time Warner and AOL.

After the bell today YHOO announced better than expected earnings and the stock was
gapping down some $23 in after hours trading. It looks like we could be opening to the
down side tomorrow on the heels of this earnings news with YHOO. This should
potentially send the NASDQ back below the ascending trend line once again further
cementing a double top on the NASDQ.

This should also drag down some very extended NASDAQ stocks and it seems that
selling the "good news" or "better than expected earnings" could be in full bloom on the
NASDQ. This means look out below for those who are holding NASDQ stocks in the high
tech field. Again it looks like cash is king in my book as it has been for the last 10 days or
so.

I do have some charts of the NASDAQ and a few charts of some stocks that have double
tops and descending trend lines.

1/3
2/3
After more downside action we will get some strong upside action again. We can then use
this to do some shorting for those of you interested.

FDRY is failing badly so lets go ahead and remove it from the model portfolio at
tomorrows open. I will do the same for HLIT as it too along with most other stocks will
suffer going forward. I will set the price in tomorrows letter at the average of tomorrows
move for both stocks. Go very easy on your selling of these as you will only hurt me and
yourself. 100 share lots or so would be best.

I will have more tomorrow

Daniel J. Zanger

P.S. The last time I saw a re-validation of a trend, it lasted only three weeks before it
broke down again.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 January 2000

Hello out there stock fans. "Lower lows and lower highs" and selling "better than expected
news," is all the rage now for the next 8-10 weeks, as the power of the corrective forces
are firmly in control.

As you know ARBA reported better than expected earnings news today and another 2 for
1 split, and the stock was punished 18 points on this better than expected news. The
same for YHOO, as it too reported better than expected earnings and a 2 for 1 stock split.
Just wait for the street to get a hold of a stock that reports earnings in line with
expectations or even worse, less than expected. These stocks could collapse in a
spectacular fashion. This is why I am 100% cash at this point and short a few selected
issues.

I would expect this corrective action to continue for at least the next two months. Of
course there will be strong whip saws, up and down with many of the snap backs strong
and furious, but short lived of no more than 2-3 days. We will then see waves of selling
coming in and dropping the stocks below prior lows.

Many stocks are already getting close to being oversold and should snap back soon such
as ICGE and QCOM. After their snap back is complete, this will afford us an ideal time to
enter into short positions as a rally should take many stocks up to areas of their new
descending trend lines.

As you know we liquidated the balance of the 1999 model portfolio with Foundry
Networks (FDRY) being sold at the average of today’s high and low which is $120 and
HLIT being sold at it’s average price of $83. These two final sales now leave the portfolio
in 100% cash and up over 1800% for the year of 1999.

As soon as I feel the market has bottomed, I will start to add stocks to the year 2000
model portfolio, which could come as early as March if not sooner.

For those of you who do not know, this Monday the market will be closed in observance
of the Martin Luther King holiday. Therefore, there will be no letter on this Sunday, but I
will be back Monday evening with some nice charts. There are going to be many
opportunities over the next 2-4 weeks to highlight selected stocks that are going to break
down as this correction has just begun.

I wish I had some charts tonight but there are none special to look at yet. I should have
lots for you on Monday.

Daniel J. Zanger

Chartpattern.com

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 January 2000

Hello out there stock fans. A powerful rally on Friday due to weak inflation numbers and
slightly better than expected numbers from Intel (INTC) vaulted the NASDAQ some 107
points. Chips stocks rocketed out of small areas of consolidation en masse while the big
leaders of this move the internets rallied briefly but wound up closing at a loss for the day.

This rotational behavior in the market is quiet similar to what we saw last April though
June when the leading stocks back then the internets, broke down while the chips stocks
were clicking up slightly. This time the chip stocks are rocketing however.

There are many chip stocks posting very sizable and impressive earnings and this should
continue for the next few weeks. This could power the NASDAQ into new highs while the
internets take time off.

I would like to say that this NASDAQ move of the last 10 weeks is the most impressive
and powerful rally I can ever remember. The NASDAQ is at record levels of extension
from various moving averages such as the 200 day, even though interest rates are going
up, and the oils and the CRB index are near new highs. These three items normally spells
big trouble for the stock market, but the inflows of money are huge part due to Y2K and
interest in stocks at an all time high.

So if the market is going to continue higher, I will continue post all of the stocks that look
good to go higher. I must also inform you that being as extended as we on the NASDAQ,
I still consider risk levels high.

WEEKLY STOCK SELECTIONS

King Pharmaceuticals (KING)

This stock is involved in the manufacturing and marketing of prescription products.

Earnings for the last quarter were up 107% to .31 while revenues were up 118% to $104
million. There are only 20 million shares that float on this mover and the stock is ready to
move again. The group strength is 89 out of a possible 99 and the stocks strength is 94
out of a possible 99. Buy point is as this stock crosses the trend line at $61 to $64.
Western Wireless Corp. (WWCA)

This company is evolved in the cellular communications business. Earnings for the last
quarter were up 999% to .17 and revenues were up 41% to $157 million. There are only
43 million shares that float so this stock could move well over the next few months. The
buy point is at Friday’s close of $71as the stock just left its small area of consolidation.

1/3
Here is a list of strong stocks already on the move in these new leadership groups. This
list is for those with a chart program to downloading to view daily. By the way this group
can produce some of the biggest earnings you’ll ever see on the NASDAQ. In the Semi-
Conductor Equipment manufacturing group there is ASMI, ASML, LTXX, ASYT, LRCX,
CMOS, AEIS, ALTR, AMAT, GSPN ( Listed here two weeks ago in a chart with a buy
point of $94 and the stock closed Friday at $123), KLIC, MTSN, ELNT, KLAC, NVLS,
ORBK, PMCS, HELX, RTEC, TLCM, SMTC, NSIL and last is ZRAN which is moving like
an internet stock.

All of these stocks spiked up on Friday out of areas of consolidation so there are no buy
points today on these.

KLAC just report earnings that were super, up 373% to .52 with revenues up 74% to $330
million. I expect all of these stocks listed above to follow suit over the next few weeks.
Lam Research (LRCX) report similar earnings last quarter and earnings are due out soon.
This stock should move well if the market stays on track.

In the extended Biotech group there is HGSI, AFFX both as you know have been listed
here at much lower prices, ABGX, INCX, CRA, GENE, ADRX, CEGE and PGNX.

Here is a list of some potential movers for Monday for you active day traders. NSOL at
$241, IDPH at $121, ITRU at $141, JNPR at $350, MRVC at $58, IMNX at $121, ONDS
at $102, RBAK at $201, EMLX at $122, VIAN at $105.

The stocks listed above will continue to set up over the next few weeks so there will be
plenty of charts and picks to come. Stay tuned as we may have to add a few stocks to the
model portfolio too.

My camera for taking pictures of the charts is out of service until tomorrow.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

P.S. ARBA is not having another 2 for 1 as I previously reported as it was report to me by
a wire service in error.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 January 2000

Hello out there stock fans. This market continues to defy gravity as many oversold stocks
seem to be re-building their charts after heavy selling while many Biotech’s and chip
stocks are hitting new highs.

Many stocks in last nights day trader picks did well today with Network Solutions taking
the cake rising some $42 on good news. This action is good for the internet sector as well
and there seems to be many internet stocks ready to move up. Second on the list was
EMLX up some $19. KING tried to break out but it may need more time.

There are many stocks to look at tonight so let’s get to them.

New Era of Networks (NEON)

This stock is set to go.

F5 Networks (FFIV)

This stock looks good but its history is very spotty.

1/4
China.Com (CHINA)

This stocks seems OK for now, but not much follow up in other stocks in this group.

Applied Digital Solutions (ADSX)

I know nothing about this stock, but the chart looks very good.

2/4
Juniper Networks (JNPR)

A mover when it wants to be.

Here are some potential movers for you active day traders SCII at $66, MGIC at $79,
BSQR at $52, BVSN at $144, ENTU at $65, IIXL at $52, PLAB at $30, SONE at $82.

Tomorrow I will have only a few charts and no letter.

Daniel J. Zanger

Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 January 2000

Hello out there stock fans. Biotech stocks have taken center stage with many of these
stocks running up some 30 to 60 points in just the past few days. Enzo Biochem (ENZ) on
the NYSE is on fire, but very over extended as it has just run from $48 to $120 in just one
week. Similar performance is seen on Incyte Pharmaceuticals (INCY) with its move from
$38 to $157 except this one took one month.

Many other Biotech’s are having internet like performances too with leading stock P.E.
Corp. Celera Genomics (CRA) being one of the leaders as it has run form $53 to $270 in
just 2 months. Others in the this hot Gene area are GENE, AFFX and HGSI.

Earnings are coming out on many tech stocks and they are impressive. Many internet and
software stocks are posting revenue increases of 200% to 500% while many of the chip
stocks are posting earnings increases of 200 to 300%.

Of course Juniper Networks (JNPR) which was listed here with very strong looking chart
last week popped some $38 on Friday as it posted stellar earnings this past week.
Revenues were up 1093% to $45 million vs. last years $3.8 million and earnings were at
.02 vs. a loss last year of .08. I expect more of this type of earnings and revenues from
Brocade (BRCD) and possibly Foundry Networks (FDRY).

WEEKLY STOCK SELECTION

Powerwave Tech Inc. (PWAV)

I had this one back a few months ago and of course the stock decide to go into a
correction. This company is evolved in the same type of business as R.F. Micro Products.
(RFMD) which is power amplifiers. Earnings were just posted and there are spectacular,
up over 999% to .40 with revenues up over 125% to $91 million. There are only 5.5
million shares that float so this stock could move and is moving sharply. The stock is
extended but there is a buy point now of $92 to $96.

1/7
Veeco Instruments (VECO) $49

This stock is in the strong Semiconductor Equipment group. Earnings and revenues are a
little weak right now, but with earnings due out soon this may change as the whole
industry is doing very well this quarter. Earnings for the last quarter are up 50% to .39
while revenue growth is weak so far at $58 million but still up 16%. The nice base is what
attracts me to this issue so far. Earnings are due out the first week of February.

Rare Medium Group (RRRR) $40

2/7
This company is involved in the digital internet area. Revenues growth is huge. Last
quarter revenues were up 646% to over $11 million which is more than a double from the
quarter prior. There are over 35 million that float and the base is looking fine. We may
need a few more days to a week before this stock goes, but the stocks is ready to move
soon. Earnings are due out soon too and the buy point is at $42 to $45 on volume.

Scient Corp. (SCNT) $91

This stock I’ve had here a few times before. The company is evolved in ebusiness
services. The stock has had a 2 for 1 split recently and earnings were posted just the
other day. Revenues are up 581% to over $42 million and earnings were at a loss of .07.
There are only about 22 million shares that float and a buy point is very close. Buy point
is at $97 to $101.

3/7
Macromedia Inc. (MACR) $87

This company is evolved in online publishing and other areas. Revenues for the last
quarter were up 62% to $57 million and earnings were up 217% to .19. The stock has a
very nice base of 6 weeks and the stock is on the move. Buy point is at $90 to $93.

Omnipoint Corp. (OMPT) $120

This company is in the Telecomm-Cellular area with over 95 million subscribers.

Revenues are up 161% to $109 million and of course there are no earnings yet only
steep losses of over $3.00 a quarter. This however has not stopped this stock from

4/7
moving very well. Buy point is Monday as the stock crosses into new highs at $125 to
$129.

Here are some stocks for the active day trader to look at. VIAN at $102, SDLI at $273,
CHKP at $250, RNWK at $158, RAZF at $105, GENE at $27, JAZZ at $73, MERQ at
$129, MTSN at $33, MCRL at $76, NSOL at $289, SVGI at $26, DIGL at $63 MEDI at
$181..

I would also like to note that alternative fuel or energy stocks are very strong and very
extended right now. But for those of you that would like to know about them to look at for
the future, they are BLDP, AVA, FCL, PLUG and ELSI. Some of these stocks like BLDP
are involved in fuel cell technology.

As you may or may not know there are no stock right now in the model portfolio. I usually
add stocks to the model after the market has corrected. This market has not done that
due to Y2K money and very strong earnings that are coming out right now.

I only see a few stocks right now that I could add and one is Brocade BRCD. This stock
should move like JNPR did in time. It is also one of the best looking bases right now and
even though it has under preformed lately, in time it should move. Therefor I will add it
300 shares to the model portfolio when this stock $172. This represents about 25% of the
money available. I have recently bought this stock on one of the day trader buy points.

Here are some charts of some stocks that have turned the corner and are set to move up.

5/7
I will have more tomorrow Monday.

Daniel. J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 January 2000

Hello out there stock fans. A very hard reversal day today with all indexes reversing and
closing on or near their lows. The Biotech's took it hard as well as all of the prior leading
internet and optical stocks like JDSU and EMLX.
Looks like the 9 month cycle top that I had listed that would top on January 25th in early
July of last year, may have finally come around. Of course only time will tell, so tonight I
have a few charts of some of the leading indexes to see where we are.

One is the Goldman Sachs computer software index (GSO) in index

Then we have the Goldman Sachs Networking index (GIP)

1/3
Also I have the Goldman Sachs Internet index. (GIN)

All of these leading indexes are made up with a basket of the leading stocks in each
group and all are showing signs of weakness. I suspect in a few more weeks, these
indexes and their corresponding stocks will look even worse as we get closer to the
Fed.'s meeting due February.

As we know Brocade (BRCD) finally had a good day moving up and out of the base, but
not on super volume as I would have hoped for. This maybe because of the weakness
that many stocks were caught up in. It did finish strong considering the major weakness in
the overall market though. I will put this stock in the model portfolio at $174 and not $172
as I had noted as that's where the stock traded most of the early morning.

2/3
After the bell today a leading stock in the same group as BRCD and JNPR, Foundry
Networks (FDRY) posted smashing earnings and super revenues. Revenues were up
some 700% to $55 million and earnings were ahead of expectation at .11 on a diluted
basis. As far as I'm can see this is a better report than Juniper Networks (JNPR) had last
week. In after hours trading FDRY is up some 6 points to $149. BRCD reports later than
many others tech stocks and should report some time in early February, again I expect
the same performance from BRCD as I see in FDRY and JNPR.

For those of you new to the 9 month cycle there are many letters in the archives noting
this. Some in late June and the last bottom, some in late March at the last top and just
count them back every nine months and you will find them. The market bottom should
come around April 29th or so. What this means is a lot of pain for the next 6 weeks if your
on margin and/or fully invested.

There are no stock picks tonight as due to today's market action.

I will have more tomorrow.

Daniel J. Zanger
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 January 2000

Hello out there stock fans. Extreme volatility is the name of the game with little sight of a
clear trend to be found. Of the stocks that I've traded lately half of them are up and the
other half down. I guess that's why they say the trend is your friend. Until a clear trend is
in place, its just a game of hit and miss right now.
This is why I've always said the big money is made when the market comes off the
bottom after a correction and not off the top. At any rate after the close of trading today
QCOM, posted earnings that were less than the street was looking for and forward
projection were also less than hoped for. QCOM is trading down anywhere from 8 to 15
points on large volume after the bell.

Commerce One (CMRC) also reported after the bell and it too is down after the bell.
EBAY, FFIV and RNWK are up in after hours trading with their better than expected
earnings.

There are some stocks that have set up to move, so if the market has some positive
tones in it tomorrow, these stocks listed below should move.

This stock is a winner from what I can see. Earnings and revenues are very good and the
company announced a 3 for 1 stock split today. I own a few shares already from some
day trading 4 to 5 days ago. Tibco Software is the name of this mover and I've had this
one listed here a few time before in the $80 to $90 area.

This one CMGI, is an internet heavy weight and a move in this stock could help the GIN
stay afloat.

1/3
I know nothing about this stock but at times it move well.

This stock was a prior winner here at $23 and at the $56 area on its way up to $100
before correcting.

2/3
For the active day trader. AKAM at $285, ALLR at $167, BWEB at $45, CHRT at $93,
CRA could move smartly at $262, CRGN at $121, DMIC at $27, MRVC at $81, OPTV at
$101, SONE at $105 and KANA as it breaks a descending trend line at $240.

BRCD the lone portfolio stock right now, did poorly today as did many stocks, however
Foundry Networks (FDRY) did very well as to be expected on its smashing earnings and
JNPR did ok today. BRCD may need earnings like JNPR and FDRY to get its rear in gear.
All of these stocks are in the networking group.

I will have more tomorrow

Daniel J. Zanger
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 January 2000

Hello out there stock fans. Another day of few stocks making progress as the majority of
stocks were showing red by the end of the day. It seems to be getting harder and harder
to get ahead as momentum is slowing.
I see we did have some winners for the active individual in yesterdays letter. Be Free
BFRE broke its trend line and ran up some 28 points before settling in at +$20 and TIBX
moved up over $13 before pulling back a little to close the day up $7 at $179. In the day
trader section KANA ran up over $30 at one time today.

Stocks with very positive earnings after bell that are up in after hours trading, EXDS,
JDSU and BVSN, while DELL reported there will be a short fall in earnings and the stock
is dropping in after hours.

Here are some picks for the day trader for tomorrow CRGN at $120, FMKT at $279,
MACR at $90, ABGX at $169, ARTG at $159, SUPG at $51 DIGX at $94, CEGE at $20
and CMDX at $110 and just maybe BVSN at $164.

FYI the fed meets on Wednesday of next week to decide on interest rates.

Here is a chart of the NASDAQ and one of the one of the leading indexes the IIX.

1/2
I will have more on Sunday

Daniel J. Zanger
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 January 2000

Hello out there stock fans. Powerful GDP numbers and a worse than expected wage
inflation report on Friday sent the NASDAQ and all of the leading indexes breaking down.
I guess those double tops and snap backs to the prior broken trend lines of the charts I
showed you last week were right in their assessment of the market to come. (see
archives in the web site of last weeks letters)

Talk now is of .50% rate hike on this next Fed. meeting and possibly .25% in the coming
months ahead. Combining these rate hikes with the fact that we just started a correction
could mean that this correction could be very painful as stock valuations are as extreme
as I’ve ever seen them. It’s quite possible that the NASDAQ could touch its 200 day
moving average (MA) line or come close to it as this is normal for all corrections on the
NASDAQ.

Today the 200 day MA on the NASDAQ is at 2968 and rising daily with the NASDAQ
closing Friday at 3887. Most corrections bring the NASDAQ very close to the 200 day MA
before the corrective forces have exhausted themselves. This could mean that the
NASDAQ could correct some 20% to 30% over the next 8 weeks or so and could be one
of the nastiest corrections ever seen as margin debt is at record levels and the number of
rookies now trading is at record levels.

Right now many high flying stocks are some 400% above their 200 day moving average
line which by historical standards is off the scale of historical standards which is to say
"look at below" on your favorite over extended stocks. The majority of stocks are going
much lower whether you think so or not. Oh yes there will still be a few that go up.

I would like to say that buying a dip at the wrong time going forward will cost you dearly.
Take QCOM and CMRC for instance, Both were leading stocks and both get the attention
of the average investor as a result. As both of these were breaking down on Wednesday
and Thursday various friends called me asking me if this was a good time to buy these
stocks. To their dismay at that time I said no. Both are now much lower and will continue
to decline over the next few months and hopefully they are happier now.

The point being there will be time to buy a dip, but that time is not yet here. In a
descending market such as the one coming up, buying the dip is for active traders only
and holding these stocks will be for maybe 4 to 20 points at best.

The best time for dip buying is during a strong up trend and selling at or near the top
which I’ve shown you here last week in the charts (refer to the archives for these charts).

1/7
Since I get a lot of request for stocks to short, I will give you my best shorts right now but
remember, shorting is not for the average bear. Learning to go short requires time and
patience and you must be on real time quotes. One of the things I like to do most is to sell
out of the money naked calls such as I was doing on JDSU. I sold the March 220 for $23
and I did the same on CMRC and ARBA and others.

Here is a list of radically extended stocks that are or will be breaking soon. VERT, VIGN,
JDSU, DISH, ANCR, AMCC, DCLK, BEAS, BVSN, INSP, DPTI, ISLD, EPNY, ITRU,
LBRT, MEDX, NTAP, NSOL, OMPT, PTEL, PDLI, RFMD, RBAK, SDLI after earnings,
SAPE, SWCM., STMP, SUNW, VRSN, VRTS, VITR, YHOO,

Many of these stocks have put in double tops like NSOL, and others have very high
volume at the top such as RBAK and JDSU. Others still are breaking down and crossing
below their 50 day moving average line which in this market is a sell signal. These would
include stocks such as YHOO and DISH.

Let’s see some charts of these and where is a good technical entry area.

2/7
3/7
4/7
Now lets get to some charts of the indexes.
Goldman Sachs internet index

Goldman Sachs Computer software index

5/7
The NASDAQ

I see our lone portfolio stock BCRD is not acting to good like many other stocks in this
market and we should exit this stock until the market bottoms out. As you can see this
stock acts bad all day but then moves up at the very end of the day. Maybe we should sell
it a the end of the day tomorrow. Again I will average the stock out of the model portfolio
tomorrow and please do the selling in very small lots. This helps you most.

I will have more tomorrow

Daniel J. Zanger

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 31 January 2000

Hello out there stock fans. Another harrowing day on the NASDAQ most of the day with
many stocks down 20 to 40 points at their low points with many of them cutting their
losses in half or better by the end of the day.

There was a lot of technical damage however on many stocks while many others are still
in up trends and suffered little damage. I would say that much of today’s action was on
light volume. The damage was done by a dry up of buyers and not so much by a hoard of
sellers.

For instance NSOL crossed below its 50 day moving average line today and didn’t find a
host of sellers willing to dispose of this stock in hurry such as we’ve seen in the past on
such high flyers. This leads me to believe that this sell off maybe a smaller correction that
I though we might get. At any rate stocks are all over the map right now and its still best
to sit on the sidelines and wait for stocks to finish this corrective action.

On most of the indexes that I show now have lower lows in place which is technically bad
and suggests lower lows are still to come.

The NASDAQ had a very strong close today after it traded much of the day below the
trading bands. This has often been buying time for many stocks and that’s what we got
later in the day. The NASDAQ is soon to be up against the ascending trend line that it just
broke and this may provide resistance and turn the NASDAQ lower. We’ll just have to wait
and see. This line is now stands at about 4010 or so.

1/2
There are no stocks to highlight tonight as a result of the market turbulence as charts are
very broken up and will need time to re-build.

If you were to ask me if I see any stocks to buy I say maybe SCMR at its new high of
$321 and maybe CMGI as it and if it can break its descending trend line at $116.

BRCD did well today but I will take it out of the model portfolio at today’s average price of
$160 and take the 14 point loss. This puts the model portfolio back to having no stocks in
it right now.

I will have more tomorrow.

Daniel J.Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 February 2000

Hello out there stock fans. A strong move in only a few issues today pushed the NASDAQ
up over 100 points. As we know the Fed gives us its decision tomorrow on interest rates
and the market seem to be saying that this maybe the last rate hike of the year.

This could be why the market is acting so strong for many issues. Major trend lines are
broken only to be re-broken to the upside in just a few days. Talk about a market that just
won’t quit regardless of how pricey it is or incredible over extended. If the market stays
positive for the next few weeks there should be a number of stocks to buy as a few stock
are rebuilding their bases ever so slightly so far. .

In fact I happen to have a number of them tonight.

Here they are and these are a rarity in this market as so many charts are so beat up.
These few do look fair and are ready to move in a positive environment that maybe here
tomorrow be careful of the time for the Fed announcemnent at 11:15 am Pacific Standard
time (PST).

1/4
2/4
Here are a few picks for the active day trader. PHTN at $64, PRST at $21, SIFY at $48,
SNDK at $138, TQNT at $160, VECO at $60

Folks its wild out there to be sure, so be very careful as this is the toughest market I’ve
seen in a long time.

I’ll have more on Sunday

Daniel J. Zanger

Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 February 2000

Hello out there stock fans. A fair day today with many stocks moving swiftly on earnings
news like Copper Mountain CMTN and Global Span (GSPN). Also today the Fed decided
to raise rates .25% and the market basically yawned at the rate rise.

A few of the prior leaders like ARBA seem to be turning the corner while most of the
optical network stocks like JDSU, SDLI and PMCS are still red hot. Many of the Biotech’s
are cooling their heels after a spectacular run over the past 6 weeks .

Most of the good charts were listed last night so there are few to list tonight. The are a
number of day trading picks though so here they are. INKT at $106 ISLD at $91, ITWO at
$230, MGIC at $85 to $90, NASC at $36, NAVI at $120, TERN at $115, AMCC at $168,
YHOO at $329.

After more time has past more stocks should set up their charts, so by Sunday I hope to
have a lot more stocks to look at and many of the indexes as well. There really isn’t much
tonight.

I will have more on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 February 2000

Hello out there stock fans. History in the making is what we are all seeing as the
NASDAQ continues to power ahead with record breaking extensions from all moving
averages by a long shot.

We also have the Fed.’s increasing interest rates on short term money which is causing
the yield curve between the long bond and the T bills to flatten. This historically has been
very negative for stocks going forward as the Fed.’s are trying to slow growth to help reign
in inflationary pressures.

Having said all that, stocks at this point are not giving ground as they should have by
now. Should the market continue up without a correction, I surmise the returns are going
forward to be much smaller over the next few weeks or months. Again the big money
comes when the market starts a move out of a correction and not off the top.

Since the market doesn’t want to go down just yet, I do have a number of stocks to look
at today. I do think some of the charts I will list today are a little early in the stocks base
development, so will just have to keep track of them over the next few days to weeks just
in case.

WEEKLY STOCKS SELECTION

Ariba Inc. (ARBA) $185

This company is in the Business to Business area of the internet and this stock was in the
1999 model portfolio for a big gain and I will put this stock into the Y2K ( 2 hundred
shares) as it hits the buy point again. Revenues are very good up 243% this last quarter
and there are only 36 million shares that float so this stock could move fast when it wants
to. The base on this stock in very good as you’ll see in this chart. Buy point is as the stock
breaks the blue trend line at $196 to $201.

1/8
Network Solutions (NSOL) $262

This company has a lock on the dot com registration business. All other services must
pay this company a fee for each company that it registers with a dot com address in
addition to the fees it gets from the same. Earnings are very strong for the last quarter
ended in November 99 up 133% to .21 and revenues are up 133% over $58 million.
Earnings for this last quarter are due out maybe this week. There are only 18 million
shares that float so this stock can really move when it wants to. Buy point is as the stock
goes into new highs at $282 to $288. I will add 200 shares of this stock to the model
portfolio when it breaks into new highs.

2/8
Northern Telecom Ltd. (NT) $120

This is one of the premier big cap telecom plays with a big hand in fiber optics. Earnings
were just released and there are very nice considering that there are over 1.3 billion
shares outstanding. Earnings for this past quarter are up 53% to .55 and revenues were
up 21% to almost $7 billion dollars. The stock just shot out of a nice high level base so
there maybe time to get in.

Copper Mountain Networks (CMTN) $69

This company makes DSL communication products. This stock we had in the model
portfolio and got checked out earlier in the year at a small loss . The stock started to
make a comeback a few weeks ago and I listed the stock with a buy point at lower levels.
Then last week the stock posted better than expected earnings and the stock exploded
into new highs on two days of record volume. This grabs my attention in a big way.
Earnings for this past quarter were up 204% to over $44 million and earnings were up
225% to .13. This stock may or may not pull back to get in and by the way it acts, I
suspect this stock could be over $100 in a few weeks or a month. I think I might add this
stock to the model portfolio if it can rest for a few more days. I did buy some on Friday at
this level.

3/8
Tibco Software (TIBX)

This company in evolved in internet software in various areas. The company along with
another plans to offer wireless internet access in your auto soon. Revenues are strong
but not great yet. Last reported quarter which ended in November 99 they were up 96%
to $33 million and of course there are no earnings as of yet. Earnings are due out soon.
There is also a 3 for 1 stock split due soon.

Here are some other charts of some possible big movers.

Omnipoint Corp. Revenues are super strong

4/8
Qualcomm Inc. This stock maybe ready to break its descending trend line.

Voicestream Inc Another stock in the same group as OMPT.

5/8
RealNetworks. Inc The stock acts good lately

Com21 is acting a little frisky lately.

6/8
Here is a chart of the Goldman Sachs software index which by the way many others look
just like it such as the IIX.

Here are some picks for the active day trader. DIGX at $104, PWAV at $103, SONE at
$110, XLA at $152, SCMR at $321, VLNC at $35, VECO at $62.

On Tuesday I will be live on TV on the business channel which is only seen in LA . I will
be taking you calls on "You on the Line" at 2pm.

Also next week I do believe I will take a Vacation of one week. That is if my cold goes
away by then. I will let you know later in the week. Sundays letter will come on Saturday if
I go.

7/8
I will have more tomorrow stock fans.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

8/8
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 February 2000

Hello out there stock fans. Another record day for the NASDAQ with Biotech’s leading the
way as they have for the past few weeks. Chip stocks weren’t far behind either with both
of these indexes hitting new highs today.

Soon many of the other indexes like the GIP and the IIX are very close to hitting new
highs, but the Goldman Sachs internet index (GIN) is lagging far behind the others., I
suspect this is because it contains a lot of AOL, YHOO and some of the other older
internet stocks.

There a lots of stocks to list tonight for the active day trader and a few charts to look at as
well so lets get with it.

First I will lower my entry price on TIBX to $181 and not yesterdays price of $185.

Here are some charts of some stocks ready to move but I must tell you I know little about
them, but they have been listed here before at much lower prices.

1/4
Believe it or not BRCD is going back into the Portfolio at $182. The chart is looking very
nice and tight in formation which leads to believe this move maybe for real this time. 200
shares @ $182

2/4
Today ARBA touched the buy point at $196 so it went in the model portfolio 200 shares.
The stock pulled back a little but I suspect we shall see higher prices very soon. I will also
add Copper Mountain (CMTN) 400 shares as the stock hits $74. This should be
tomorrow.

Stocks for the active day trader and chart reader. CLGC at $71, CALP at $120, MRVC at
$83, EXDS at $126, BFRE at $102, CEGE at $21, CMRC as it crosses the 28 day moving
average line at $176, CREE at $176, ITWO at $257, IMNX at $163, JAZZ at 93.

To sum up the Model portfolio selections, I added ARBA today (200 shares) at $196, and
will add BRCD 200 shares at $182 and CMTN ( 400 shares) when this stock hits $74,.

See you folks tomorrow live on the Business Channel in LA at 2 PM.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 February 2000

Hello out there stock fans. The NASDAQ continued is record setting pace with another
100 point gain for the day. Biotech’s continue their blistering pace with one of last night
day trade picks Immunex IMNX leaping up some 27 points to finish the day at 187 and far
outside of its trading bands.

Brocade (BRCD) as you know had an outstanding day today with the announcement of a
deal with Hewlett Packard and the stock gapped up some $8 at the open and as we often
see on a gap the stock sold down to the $183 before finishing the day at $190 on near
record volume.

Since the stock traded most of the morning at between the $188 and the $183 area I will
average the stock into the model portfolio at $186. 200 shares at $186.

Copper Mountain CMTN did fair on good volume but this stock is extended and may need
more time it too goes into the model portfolio, 400 shares at $74. By the way, ARBA
should get going tomorrow or the next day at the latest.

Here are some charts of some very well known stocks that are about to move again. Most
have been in the model portfolio before.

J D S Uniphase (JDSU)

a big winner and should continue to be for the next 9 months or so. Revenues growth is
spectacular and so are the earnings. A stock split due in March.

1/6
Qualcomm (QCOM)

is ready to move again and the stock is ready to break is controlling descending trend line
at the $142 area and this may happen tomorrow.

2/6
CMG Information (CMGI)

This incubator of internet stocks is ready to move again.

3/6
Broadvision (BVSN)

This chart I believe shows a stock that may need a week or so of additional basing work
before it goes. Keep daily tabs on it though.

4/6
Here is a stock of one of the charts that was in this past Sundays’ letter. The stock broke
out today on very good volume and closed strong on its high for the day.

5/6
Here are some stocks ready to move for the active day trader. CNTR at $10, MSTR at
$161 and this stock can be a real big mover, NTAP at $133, NSOL at $252, PHCM which
is acting real good lately at $142, PROX at $108, PWAV is ready to move after a rest at
$103, CMRC if it can cross the 28 moving average line at $175.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 February 2000

Hello out there stock fans. A rather ho hum day today with the DJIA sinking some 250
points and looking rather ill while the NASDAQ gave back much of yesterday’s gains and
still looks healthy.

There were some bright spots though with Tibco Software TIBX a recent chart selection
here just the other day, shooting up over $28 at one point during the day, but gave ground
late in the day like so many others to close the day up $20 at $201.

Juniper Networks JNPR another pick here at the $119 area just three weeks ago with a
nice horizontal formation went over the $200 mark today, but closed the day just outside
the trading bands that you see in the charts that I show you at $185.

Also Broadvision BVSN announced another 3 for 1 stock split and the stock gapped up
strong today and leaped over the trend line that I showed you in last night charts on
record volume. It would be very beneficial if this stock could hold this trend line at the
$164 mark.

Model portfolio stock ARBA is resting and as I see it and has created a cup and handle
formation and the stock should be ready to move up and out any day now. Volume has
decreased in the handle over the past few days which is positive.

1/3
Brocade BRCD another model stock did very well today and closed strong after a weak
opening today on very high volume. This stock should continue up nicely over the next
few weeks. Earnings are due out on the 17th of February.

Copper Mountain CMTN our third portfolio stock is acting just fine and could move out of
the $72 area as soon as tomorrow. Network Solutions NSOL is acting frisky with its
secondary offering out of the way and the stock is hopping up and down like a through
bred ready to race.

I have a new chart of this stock tonight and a new buy point to boot. I like the action in this
stock and I have bought some over the past few days. So I too hope it hops tomorrow as
earnings are due out after the bell tomorrow. If the stock is moving up tomorrow in
anticipation of earnings this is a very good sign.

I will add 200 shares of NSOL into the margin model portfolio when this stock hits its new
buy point at $271 or as close to it as possible.

2/3
Here are some selected picks for the active day trader. NEWP at $117, NTPA at $70,
GLGC at $80, CMDX at $112, and PHCM at $140.

I will not go on vacation next week as planned, but I will take the following week off.

I’ll have more on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 February 2000

Hello out there stock fans. A strong week last week for the NASDAQ while the DJIA
dropped over 500 points putting this major index at the official correction area of minus
10% from January’s highs.

On Thursday of this past week Network Solutions NSOL broke out of a nice base with the
help of better than expected earnings and news of a 2 for 1 stock split that propelled this
stock into record new highs on near record volume. It had a good second day too as the
stock broke the $300 mark on very strong volume. This stocks action is very good and
barring any major correction on the NASDAQ I expect this stock to get to maybe $400 in
4 to 6 weeks.

On Friday the model portfolio stock Ariba (ARBA) broke out of its cup and handle
formation and rocketed to new highs on 2 times daily average volume. This is very good
action on this stock and I expect higher highs to come over the next few weeks.

1/4
Meanwhile Copper Mountain CMTN is resting to consolidate its gains after a big move
from lower levels. This stock may take a few more days before it gets going. Brocade
BRCD on the other hand is moving fairly well after breaking out from its base. Volume is
good but price movement is a little weak for now. This may change soon as I hear
earnings are due out on the 17th of this month.

2/4
3/4
Taking a look at the DJIA, we see that maybe we could get a bounce here sometime
during the week as the DJIA is below its trading bands.

There are few stocks to list today for the active day trader so here they are. PWAV at
$103, ACVC at $51, OMPT at $134, SCMR splits 3 for 1 on Monday and earnings are
due out on the 17th I hear. A break into new highs at $107 split adjusted would be a buy
point on this optical networking stock.

I will have more on Monday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 February 2000

Hello out there stock fans. A very strong opening today as many stocks gapped up 4 to 8
points. These gains were quickly erased within 1 hour on most of these strong stocks.
Ariba ARBA gapped up some 6 points to a new high at $218 but then met early morning
fatigue and was pushed down to test support at the $199 area before closing back up at
$213.

This was the case with many stocks except one that stands out in my mind and that was
Brocade Comm. (BRCD). Our model portfolio stock received an upgrade today and the
stock gapped up and finished up over $17 on one of its highest volume days ever.
Today’s action is the type of price action that I’ve been looking for all along. Earnings are
due out on February 17th and we could see more of the same type of action soon
thereafter.

Copper Mountain (CMTN) is still sleeping and should awake soon or else its time to move
on to others. Network Solutions (NSOL) our last model stock is still acting very lively. After
a brief rest which is due soon this stock should move smartly to higher ground.

There are a couple of very strong acting stocks ready to move out and one in fact started
to move today. That stock is Broadvision (BVSN). I was hoping to see this stock rest a
few more days but I guess so were many others so it didn’t. Here is a chart of this stock
and its new buy point.

1/4
The other stock that I feel strongly about as do many of the top institutions in J D S
Uniphase (JDSU). This stock is the leader in the fiber optics group and is a must own in
my book. Revenues and earnings are just tremendous. For this past quarter revenues
were up 342% to over $281 million while earnings are up 260% to .18. The company is
gobbling up other fast growing companies which should ensure continued strong revenue
growth for many quarters ahead. There is a also a 2 for 1 stock split due out in March.

2/4
Here are some stocks for the active day trader to look at.

3/4
Here are candidates for active day traders. FIBR at $88, OMPT at $133, CNXT at $114,
CMDX at $127, CEGE at $25, IIJI at $108, CMRC at $160, CMVT at $185, QLGC at
$105, VIGN at $217.

I will have more tomorrow

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 February 2000

Hello out there stock fans. The NASDAQ staged a very strong rally during the last 2 hours
of trading today to bring the NSDAQ back from a 130 point loss to a 2 point gain. The
DJIA had a fairly impressive gain today of 198 points as it bounces off the lower trading
band.

Many stocks were down up to 17 points like our model stock Network Solutions (NSOL)
only to have most of these leading stocks rally back strong to close positive by the end of
the day. Stocks like Ariba (ARBA) after being down some 6 points closed the day up $6 to
close into record territory at $219. The chart on this stock looks very good too.

The are some very good looking charts of some prior big movers that are set to move out
again. Commerce One (CMRC) is starting to perk up and the stock crossed a descending
trend line today on an expansion of volume. I picked some up today and it was listed in
last nights letter with this buy point. The stock is ready to cross another technical buy
point which is the 28 day moving average line.

Here is one of our past big winners Emulex (EMLX) It too is ready to move out as it
breaks a trend line.

1/4
Last is Copper Mountain (CMTN) this model portfolio stock is ready to move and this
should come tomorrow.

2/4
All of the current model stock of NSOL, BRCD, NSOL and CMTN are looking and acting
fine.

Here are a few day trader picks for tomorrow. VRSN at $220, ZICA at $41, CMOS which
just posted stellar earnings a few days ago at $119, CNXT at $113, CRA at $272 and
EXDS at $120.

Remember folks next week is a vacation week for me and there will be no letters from this
Saturday through the following Sunday. I will return on Monday the 28th of February.
Please mark your calendar if necessary.

I will be back tomorrow.

Daniel J.Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 February 2000

Hello out there stock fans. A fabulous day today for the Biotech’s with Protein Design
Labs rocketing up some $69 to $204 on record volume. This was followed by Miliunum
Pharmaceuticals (MLNM) up over $42 and then by Human Genome Sciences (HGSI)
which shot up over $35 on news of a patent of some sort.

This Biotech move is very reminiscent of the Internet move of last year this same time.
The Biotech index (BTK) is in a strong parabolic curve and shows no sign weakness as of
yet. Its day will come for a hard break like the internets did last year but that corrective
break maybe a few weeks to a month or so. This should provide us with great chart
patterns in which to buy from with great safety such as AFFX and HGSI has done in the
past.

Many internet stocks were moving very well today too as we saw last nights stock pick of
Commerce One (CMRC) move up some $20 at one point as this stock crossed the 28
day moving average line on near record volume.

1/6
We also had J D S Uniphase (JDSU) cross its descending trend line that I showed you
the other day and the stock moved well on volume through this line. This spike of volume
shows conviction and this move should hold.

2/6
Tibco Software (TIBX) another pick here last week is moving like a biotech with its large
spike in price today. The stock was up some $22 on near record volume. Earnings are
due out tomorrow and the 3 for 1 stock split is due and payable on Monday.

3/6
We also saw portfolio stock Copper Mountain (CMTN) move out last nights pennant
formation very nicely today on very strong morning volume and good end of the day
volume as the stock advanced almost $7 on one of its most active volume days ever. Lets
see what this pennant looks like today after the move.

4/6
Of the other model stocks, NSOL is ready to advance tomorrow after a brief rest, ARBA
may need more time to consolidate its gains before moving higher and BRCD is moving
very well and earnings are due out tomorrow. BRCD has had a substantial move and a
rest of a few days or more is not out of the question.

Since next week is a vacation week for me from this Saturday through next Sunday, I will
list some stops for the model stocks just in case one goes bad. NSOL stops at $265,
BRCD at $175, ARBA at $190 and CMTN at $67.

There are no charts tonight as most chart set ups have moved, but there are a number of
picks including some biotech’s that are ready to move. PUMA at $110, NGEN at $61,
SUPG at $56, PGNX at $86, IDPH at $126, NXTV at $128, GENE at $43, ELCO at $27,
ISLD at $113, MCOM at $100.

We do have one slot left for our fifth model stock but since there was no money left at the
time this stock left its base I could not add it. That stock would have been Sycamore
Networks (SCMR). This company is in a very strong group like Juniper Networks (JNPR)
and it manufactures optical networks which are in very big demand today. Earnings are
due out tomorrow and the stock is acting well.

So no SCMR as of yet in the model portfolio.

Remember folks this is my last report until Monday the 28th of February. Please mark
your calendar if necessary.

5/6
Until then happy trading/investing to everyone.

Dan

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 February 2000

Hello out there stock fans. Powerful moves in the NASDAQ last week sent most of the
stocks I listed here two weeks ago prior to my vacation, rocketing to new highs on very
strong volume. Stocks like J. D. S. Uniphase (JDSU) which I showed you here with a buy
point of $205 as it crossed its descending trend line, roared to $260 on very good volume.

Other big winners that I showed you included Tibco (TIBX), up from $181 as it broke the
trend line to $327. This stock just had a 3 for 1 stock split so the chart you see reflects
that. M R V Communications (MRVC), which went form $85 to $146 in just a week and
Commerce One (CMRC) which blasted off from $163 to over $221 in just 10 days on
record volume. Also our model portfolio stocks Ariba (ARBA) and Brocade (BRCD) are up
some 50 points each in just the past 7 trading days. Seems I should go on vacation more
often wouldn’t you say?.

1/4
2/4
Our other model stocks Copper Mountain (CMTN) and Network Solutions (NSOL) are
acting a little weak right now but are still making progress with their series of higher highs
and higher lows. Until something better comes along I will leave them in for now.

Since most stocks are out of base formations right now there are no new charts of stocks
to list tonight. I do however have some picks to look at for the active day traders. SCLN at
$14, NGEN at $66, NEWP at $133, CNET at $69, FDRY at $136, GNLB at $12, LEAP at
$87, MTSN at $42.

One stock that I own that may or may not move wildly again is that is TERN at $273.

Every once and while I have a "grab and go" type stock and today that stock is MFCO
right here at $21. As you know its a very high risk situation.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 February 2000

Hello out there stock fans. Record highs for the NASDAQ again on very strong volume.
The Biotech (BTK) index continues to hit new highs as does the Semi-conductor index
(SOX) while the Goldman Sachs internet index (GIN) is ready to move out of an area of
consolidation soon.

Tonight I have only one stock with a base long enough to show in chart form. This stock
could be a big mover like it has done in the past so stay tuned. This stock is Digital Island
(ISLD).

I understand that while I was away on vacation NSOL hit my stop at $265 and therefore I
have to remove it from the model portfolio at that price. It appears to me that NSOL is
going much higher though.

I will add JDSU to the model portfolio tomorrow between $266 to $271 if I can get it at this
price. I will add 200 shares.

1/2
In last nights letter there were some very strong picks in the day traders section like
NEWP which moved up some $45 from the buy point before settling down to close the
day up some $28. Foundry Networks (FDRY) also moved well closing the day up some
$10, while Nanogen (NGEN) moved up $13.

Here are some day trader selections for tomorrows action. HGSI at $219, ENTU at $90,
BRCM at $199, BEAS at $131, CEGE at $41, NSOL at $325, SCMM at $121, PRGN at
$56, KEYN at $168, COHU at $60, HYSQ at $102, IMNX at $200.

The other model stocks of BRCD, ARBA and CMTN are looking and acting fine. I do have
one other potential model stock that should be ready to add tomorrow night. Of course I
will have it for you as soon as it sets whether it is tomorrow or the next day.

I will have more on Wednesday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 March 2020

Hello out there stock fans. Folks if you don’t love the smell of Napalm in the morning
you’ve got to love the NASDAQ putting in two strong back to back days with today’s
volume at record levels. Life on the NASDAQ just doesn’t get any better.

Today we saw strong moves in many of the Biotech’s and many of the leading internet
and fiber optic networking stocks. The one stock I wish I would have put into the model
portfolio that I wrote about two weeks ago is Sycamore Networks (SCMR) when this stock
was at $107, it just keeps on going and today the stock closed at $169 up $60 in under
two weeks.

The way Commerce One (CMRC) was acting today, I had no choice but to add CMRC to
the model portfolio as soon as the stock rested during the day. I’m sure this caused some
of you to get in late, but the stock is still a buy in my book.

We also added JDSU to the model portfolio today at $271. JDSU as you know gapped up
some 8 points today but as we so often see, the stock came down into the buy zone listed
in last nights letter, one half hour after the market opened. The low price for the day on
this stock was $269 and three quarters. JDSU is now in the model portfolio with 200
shares at $271.

The following stocks are now in the model portfolio and all stocks are at 200 shares each
until such stocks split. . Brocade Comm. (BRCD), Commerce One (CMRC), Copper
Mountain (CMTN), J D S Uniphase (JDSU) and Ariba Inc. (ARBA). The model portfolio is
full now with these five stocks.

Last nights stock selection Digital Island (ISLD) had a very strong opening today like so
many other stocks with its 8 or 9 point gap, then moved down to the trend line for support
on little volume by mid day. The trend line needs to hold as usual or this stock could see
lower lows. Otherwise this type of action is not out of the norm for a stock that is not into
all time new highs. A little more time is warranted I think.

Tonight I have a stock that was such a huge winner for all of us last year. This stock may
need a few more days to a week but it maybe ready to move soon. Qualcomm (QCOM)
of course, is the one.

1/3
I also have chart of CMRC for those of you that do not have a chart program. This type of
chart pattern on this stock is extremely bullish. Once chartists see this pattern tonight the
stock should have a huge day tomorrow.

2/3
Here are just a few picks to look at tomorrow for the active day trader. AFFX at $306,
DISH at $118, COHU at $60. Like I said just a few.

I will have more on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 March 2020

Hello out there stock fans. A tame jobs report on Friday sent the NASDAQ soaring to
record highs on near record volume. Friday’s close puts the NASDAQ outside the upper
trading bands for the first time since the end of December 1999.

The five model portfolio stocks continue to perform well with Ariba (ARBA) vaulting some
$30 on Friday the day after it announced a 2 for 1 stock split. Brocade (BRCD) continues
to perform well and like ARBA is now up over 65% in just 3 weeks. Copper Mountain
(CMTN) is up about 25% while the two new stocks added just last week CMRC and
JDSU are moving well and I expect CMRC to move up some 60 to 80 points over the next
two to four weeks.

There are many stocks in many groups ready to move out and today I have some charts
of four stocks that are proven winners in the past and may continue to do so in the next
few days to few weeks.

The first one is Scient Corp. (SCNT) This stock I’ve had here a few times in the past and
finally the stock is starting to move again. Revenues are up 581% to over 42 million and
as is the case with so many internet stocks there are no earnings as of yet. The stock is
already on the move and the next buy point is at $97 to $100.

1/5
The next stock is Adaptive Broadband Corp. (ADAP) This stock can really move and
Friday it came to life in a big way. Not much revenues and no earnings but who cares
these days.

2/5
Here are some trading buys

3/5
Here is chart of the NASDAQ and one of the Goldman Sachs internet index (GIN).

4/5
Here are stocks to review for the active day trader with a chart program. CEPH at $73,
AFFX at $325, BVSN at $263, ITWO at $172, MLNM at $274, NTAP at $202, IDPH at
$151, DMIC at $40, ALLR at $148, AMCC at $275.

By the way I made a mistake as there are 400 shares of CMTN in the model portfolio and
not 200 as I reported last week.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 March 2020

Hello out there stock fans. A very good day overall considering that the NASDAQ was up
over 65 points at one time today and closed down at the bell by 10 points.

Many stocks from last nights selections were strong movers like IDPH which posted gains
of some $21 and AMCC up over $18. In the charts of last night, Scient (SCNT) did very
well posting gains of over $11 on near record volume as the stock broke the trend line
and the base in style. Look for much higher highs on this stock.

Many of the model stocks were strong early on today but most of them gave up ground by
the close of trading today. Commerce One (CMRC) was up over $11 during the day but
closed up by only $5. Copper Mountain (CMTN), Brocade (BRCD) and J D S Uniphase
followed the same path. Ariba (ARBA) gave up the most points today after a very strong
run up on news about the 2 for 1 stock split due in a few weeks. ARBA dropped $13
today but should be back after a well deserved rest.

Tonight there are a few charts of some potential movers to show and one of them was in
the model portfolio for some time last year. That stock is Foundry Networks (FDRY).
Earnings are very strong as is the revenue growth.

1/2
Here is another possibility.

Here are some picks for the active day trader. OPTX at $186, MACR at $89, VRSN at
$256, VIGN at $272, TLRK at $92, TERN at $241, SIMG at $111, SIFY at $99.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 March 2020

Hello out there stock fans. Proctor and Gamble (PG) had bad news for investors today.
This caused investors drop P&G some 27 points and with it went the DJIA as it dropped
some 374 points.

Today we saw the NASDAQ cross the 5000 mark for the first time. However after a late
opening by P&G which dropped the DJIA hard and quick the NASDAQ had a quick and
sudden retreat too. By the end of the day the NASDAQ gave up all its gains and closed
the day down 57 points.

Many stocks were strong most of the day only to fade to losses by the end of the day.
Even the strongest group in the stock market right now the Biotech’s, saw many stocks on
the losing end. However today’s weakness brings the NASDAQ back inside the upper
trading band with up trend is still in place. See attached chart.

Last nights stock selection Foundry Networks (FDRY) opened fair and then took off as it
broke the trend line displayed in the charts. Foundry Networks closed the day up over
$21 on a 50% expansion in normal daily average volume. This stock looks like it has
much higher to go with the type of price action we saw today.

1/2
A strong mover today from last nights day traders picks was TERN. Volume today on this
stocks was also 50% greater than normal and there is a large gap in price. This gap
shows large buying pressure and the next buy point for many will be as the stock breaks
into new highs at $271.

Also the model portfolio stock Brocade (BRCD) was up 18 points at one time today which
puts this stock up over $150 in just three weeks. The stock split is just around the corner,
so I expect this stock to hold up at this level until that time and possibly go higher.

All of the other model stocks are still looking good but have had good runs and a small
consolidation is good right now for most. These include JDSU, CMTN and ARBA while
CMRC looks like it’s not ready to rest just yet and may reach $300 sooner than we think. I
hope so anyway.

Here are some picks for the active day trader for tomorrow. DCLK at $98, ICGX at $39,
JNPR at $285, TLRK at $92, TERN at $271, SNWL at $110. SIFY at $99 but it may need
a few more days to rest or so.

I will have more tomorrow

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 March 2020

Hello out there stock fans. Alan Greenspan spoke today and the NASDAQ market took it
on the chin to the tune of over 100 points. This 100 point drop, as hair raising as it was,
did nothing to any stocks or indexes as far as trend lines that support them was
concerned.

By mid day most of the big losses were erased on many of the leading internet stocks
with many of these stocks finishing the day up anywhere from 6 to 50 points.

To me it seems that the leadership in the market has turned to the Internet stocks
because they are well rested. The Biotech’s and the chip stocks have had a mighty run
and a rest in at this time is well deserved right now. Here are two charts to highlight my
thoughts.

1/4
Today we saw some very heavy selling in two of our model portfolio stocks. JDSU and
BRCD both got hit hard today on high volume. However, their up trends are still firmly in
tact. It seems that an analyst had some remarks on fiber optic stocks that sent these and
other fiber optic stocks tumbling today. I think both of these will recover after a week of so
of rest.

The other model stocks continue to move well with CMRC moving nicely and it could see
$300 very soon. ARBA maybe close to be getting exhausted and CMTN is still in a very
good up trend.

They are a few charts tonight of stocks on the move. One was in the comments section of
the web site last night. That stock is VerticalNet (VERT). The stock has put in a handle on
a cup formation and the stock is ready to move out. I did buy the stock today as it was
attempting to move out and it may or may not go tomorrow.

2/4
Here is a chart of Adaptive Broadband (ADAP). I listed this stock and its chart just the
other day with a buy point of $130 and today the stock hit $167 on good volume. This is
my original chart after today’s download.

3/4
Here are some stocks set to move very well tomorrow. HNCS at $120, KANA at $166,
PWAV at $174, TERN at $271, TGNT at $91, TIBX at $135, VIGN at $282, VITR at $192.

I will have more on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 March 2020

Hello out there stock fans. The NASDAQ continues it’s powerful up trend and in so doing,
has an accelerated rising trend line which if not broken soon, could send this market
straight up in true parabolic fashion. See attached chart.

The NASDAQ is again at the upper trading band which it seems quite attached to lately.
This usually means a rest or a pull back of some sort is in order shortly. We also have
some key economic reports due out this week which could give the market a good excuse
to pull back a little as it waits for the numbers to be released. The PPI is due out on
Wednesday and the CPI is due out on Thursday.

This past week Chartpattern.com had some of the best movers in the market listed before
they moved. One of the best was Adaptive Broadband (ADAP) which soared $77 in just
five trading days from its buy point of $130. This was followed by Phone.com (PHCM)
and Foundry Networks (FDRY) both which broke out and ran some $60 each in just 2
days. VerticalNet (VERT) popped some $43 in just one day. Last was Scient Inc. (SCNT)
which moved some $33 in five days. (see archives in the member login area to view
these charts)

1/3
The model portfolio stocks are doing very well with Copper Mountain (CMTN) performing
well this past week with about a $20 gain in price or over 20% for the week. JDSU trades
split adjusted on Monday and it should head up this week in my opinion. BRCD is acting
like a wild animal and just won’t quit. ARBA is having its first corrective action since
breaking out of its base at $196 then sprinting to $366 in just 4 weeks. CMRC is resting
after it too sprinted from $161 to $275 in just three weeks. All of these are in need of a
rest and deserve one if I might add.

Here are some day trader picks to down load and look at. LHSP at $122, OPTV at $188,
SMTF at $61, ASWX at $131, BALT at $222, BOBJ at $143, BRCM at $250, CREE at
$202, ICGE at $147, IMPT at $39, LOOK at $72, SMTL at $47, VRSN at $248, IWOV at
$200, BRKT at $52, CMGI at $150, CHRT at $97, CMRO at $52, IVIS at $44, ALLR at
$183.

Here is a chart of one stock I’ve had here a few times and it did very well. Leap Wireless
(LWIN)

Here is a stock that is speculative at best.

2/3
I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 March 2020

Hello out there stock fans. Trouble in Japan this morning as the GDP numbers for this
Tiger giant showed a decrease in growth by about 1.5%.This was quite unexpected and
sent our beloved NASDAQ down a whopping 200 points within just a few minutes.

Of course over the past few years trouble in Asia has meant a strong stock market here
for many reasons. However today many of the immediate reverberations in our stocks
were nasty to say the least. Many of the leading stocks had a very tough day with most of
the best stocks like Juniper Networks (JNPR) getting pummeled. Many other strong
leading issues were badly beaten up as well. Broadvision (BVSN) gapped down $20 and
closed down $28 and Phone.com (PHCM) down $21.

Lets not forget those Biotech’s of which I highlighted the Biotech index just the other day
with a possible top in place. Many of these techs are getting crushed with some off their
highs by over 25% in just a week. In fact the Biotech’s have had such a hard and wicked
break down that these charts will take months to re-build and many of course will not
come back. Today the NASDAQ came close to the support line that I had in last nights
chart which as of tonight stands at about 4792 and is rising about 20 points a day..
Another hard day like today and this line will be broken. Again it’s just a matter of time
before this happens and to be sure, when this does happen the big lady sings.

So what to do now. I for one did some lightening up of my positions today and will
continue to sell some into the rallies. I will probably do some light day trading, but for the
most part I think it’s just a matter of time before this massive move in the NASDAQ comes
to a halt. I would like to note that most corrections start at earnings time, so we could see
some good bounces in selected stocks and the market up until early April.

It seems like we might be repeating the same scenario that we saw last year at this time
which was a hard break in April and a good correction up until the end of June. Of course
we shall see. I for one don’t want to risk most of my gains on margin going forward.

As for the model portfolio stocks BRCD, ARBA, CMTN and CMRC are still acting well and
I expect they should continue to do well up until there splits are over with or earnings are
displayed. JDSU is not responding well and may have to go soon. I want to see an up day
in the market to see how it responds before I set this stock free.

As many of you know Commerce One (CMRC) announced a 2 for 1 stock split today and
the stock responded poorly. It did however hold up fair at the end of the day considering
the market.

1/2
There are no charts tonight due to the market clobbering so many stocks. I do have some
day trader picks to download and look at though. SPLI at $96, TMPW at $96 and ELON
at $97. Lots of 90’s tonight. Hopefully I’ll have some charts tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. As you may or may not know, I don’t take 20 to 30% off the table in the model stocks
as the data base in the web site can’t accommodate this. I can tell you that I have done
this on most of the model stocks that I own.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 March 2020

Hello out there stock fans. Another special day today on the NASADAQ as the NASDAQ
pierced the rising trend line today that I showed you in Sunday’s letter. This came with
about 1 hour left to go in the trading day. When this happened the market quickly dropped
another 75 points to bring its total loss for the day to over 200 points. This brings the 2
day total lose to 341 points.

Biotech’s took it especially hard on comments from President Clinton today about Human
Genome code sharing. He believes that this new technology should be shared world
wide. This caused leading stocks in this area to plummet some 30 to 60 points during the
day.

Also beaten up today were many of the leading internet and chip stocks. Juniper
Networks (JNPR), Commerce One (CMRC) and others found few buyers during the day.
These and other leading stocks dropped 10 to 25 points on fair to light volume. A change
of trend seems more firmly in place.

One stock listed last week VerticalNet (VERT) broke support today. Support is the buy
point listed in the chart which was at $253. Once this "Line in the Sand" as I call it was
broken, this stock quickly dropped to $225 before someone threw this stock a very small
rope or should I say string, and the stock re-couped $5 to close the day at $230. This
stock had enough technical damage today to last a few months. Again folks, when stocks
break below those buy points or trend lines you know what I’m doing and it ain’t looking at
it.

After the bell today Oracle (ORCL) posted strong earnings numbers and the stock is up
some $6 in after hours trading. Combine this with potentially favorable PPI numbers due
out tomorrow and the fact that the NASDAQ has had two huge down days and the stage
is set to have a good rally tomorrow. Lets all hope so anyway.

Let’s take a look at the NASDAQ chart listed here in this link below and we’ll see it’s just
some 75 points from its first support level. This support level is the 28 day moving
average (MA) line which now stands at 4636.

1/3
I really thought JDSU would bounce sooner and it may tomorrow. CMRC caught me off
guard today with its very quick drop to $235. This was OK if the stock can find buyers at
this area. After an hour or more of hanging around at this $235 area, the stock decided to
take a second discount and dropped another $10 to close the day at $225 This is just
above support which is around our buy point at $220. If we have good numbers
tomorrows on the PPI then this stock should pop up nicely as will many others. Otherwise
lets hold our stop at $215 which would represent a $5 loss.

I think we should start backing out of all our model stocks over the next few days to
preserve cash and hopefully lock in some gains. I will set stops on CMTN at $95, CMRC
at $215, JDSU at $120. The others are acting well and if I set stops right now for sure
they will be taken out and then the stock will bounce up. I will hold off on these two BRCD
and ARBA for later.

I think its time to evoke my 50/50 rule. To me it makes no sense to hold stocks when the
market starts to falter. Remember if 50% of your stocks go up and 50% go down then you
have netted close to zero more likely than not. So why risk owning stocks at all. I would
rather step aside and let the other guys duke it out and preserve my cash for the next
market move.

Preserving cash is my number 1 priority right now.

I will have more tomorrow and lets all hope for better than expected PPI numbers in the
morning.

2/3
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 March 2020

Hello out there stock fans. An absolutely horrendous day today in the NASDAQ as many
leading stocks are plummeting like an asteroid falling to earth. The damage to portfolios is
deep and extreme to be sure as is technical damage to most leading stocks.

Most lines of support on many leading stocks and indexes have been violated, as many
stocks are free falling with no buyers to be found to support them. No trend line or trading
band seems strong enough to hold stocks up. This is similar action to what we saw last
year in mid April and early May when the internet stocks were breaking down. I think one
might safely say that the music has stopped in all groups on the NASDAQ even though a
bounce of 3 to 4% might ensue.

Let’s get into the charts and in my opinion, you’ll see that the great move that we’ve
experienced over the past 7 months has come to a halt. First up let’s see a chart of one of
the big winners over the past 7 months. We’ll see a chart that is similar to Broadvision
(BVSN). As you know after BVSN’s break, it took 6 weeks for it to re-build before it could
get going again. This not to suggest that this move will start up again in 6 weeks because
it won’t.

1/6
By the way CHKP is down some 90 points in just three days.

Here are some charts of the leading indexes and you’ll see charts that look the same in
structure to CHKP. The major growth trend is broken on all of them for now.

First up is the Philadelphia Semiconductor index (SOX)

Then we have the Goldman Sachs Computer software index

2/6
Here is a chart of Triquent Semiconductor as it careens out of control like so many other
high flying and extremely over valued and extended stocks.

3/6
Now it’s time for a chart of the NASDAQ and it looks very scary to me with the
possibilities that could happen if this major trend line is broken. It will be broken stock
fans, it's just a matter of time.

4/6
Today we were checked out of CMRC, JDSU and CMTN and I sure wish we got out of
ARBA and BRCD. Since I’m not sure which way the PPI numbers will go tomorrow or the
market for that matter, I must put a floor these under stocks. At some point all stocks will
bounce but when is not known.

ARBA at $251 and BRCD at $128. Will get’em next time stock fans as the magnitude of
this downward move is so massive and extreme it has punished every good stock so
lighting fast.

My apologies stock fans as to the error on the PPI numbers. My sources for this info have
been removed. Lets hope the numbers tomorrow are ok and a bounce ensues. The
strong move on the DJIA today suggest good numbers and there was a very good move
in financials today which could confirm this. We shall see.

Cash is still king in my book.

I will have more on Sunday stock fans.

Daniel J. Zanger

Chartpattern.com

P.S. We are deeply oversold short term.

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 March 2020

Hello out there stock fans. This past week we saw about a 12% break on the NASDAQ in
just 3 and half days. However many stocks dropped by as much as 50% during this
break. Biotech’s took it the hardest with a break similar to the one I witnessed back at end
of their last big run in 1991.

By the way, this break we are seeing in the biotech’s is similar to the one I witnessed in
the chip sector in the fall of 1997. The oil sector broke as well in 1997, but it took a month
or more for many of the oil stocks to get down by 50%. Eventually most all of the stocks in
these two sectors, chips and oil, went down by as much as 75% by the middle of 1998.
Oh yes, many biotech’s were down by as much as 90% by 1993.

With so much damage done to the charts of so many leading stocks on the NASDAQ, it
will take time for these stocks to rest and stabilize. When these stocks stabilize and a
base is put in, I will then have many charts of leading stocks to highlight. This happened
in early February after the hard shake in January which got me into BRCD, ARBA and
many others. It may take a week, or it could take two months.

Today I have a two charts of the NASDAQ. On the first chart we see the more severe
ascending trend line that it just broke. This ascending line now becomes resistance. On
the second chart we see the lower trend line which, although broken twice, is still holding
for now. This trend line is at the lower trading band and these two items combined, the
trend line and the trading band are strong areas of support for now.

1/5
Of course we all know the NYSE was on a tear this past week rising some 500 points and
breaking its descending trend line. This break of the descending trend on the DJIA should
be the start of a new up trend for the NYSE.

The Fed.’s meet this week and the market is expecting the Fed.’s to raise rates at the
conclusion of the meeting. The market is also saying that this is probably the last rate
hike for some time to come which is why the financial stocks are moving so well.

There are a few stocks to look at for the active day trader, but I would like to remind many,
that should the market remain weak, buying strength during the day can lead to losses.
EBAY at $223, ATON at $119, EFNT at $161, EMED at $8, GIGM at $70, GILTF at $142,
LWIN at $96, SEAC at $69, SWCM at $150. Again, all highly speculative at this time.

Here are some selected stocks to look at with some charts.

2/5
3/5
4/5
All of the model stocks are now checked out of the model portfolio. This means we are
now in 100% in cash. When the market settles down and stocks build new base
formations, we will start adding stocks again to the model portfolio.

I will have more on Monday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 March 2020

Hello out there stock fans. Can I interest any one in a stock or two to buy. There’s a
tremendous sale going on down on the NASDAQ and they’ve got all these neat
companies in the new high tech area with great growth prospects. Some are even having
a 50 off sale.

All kidding aside folks, this sell off in my opinion has just begun and we have a long way
to go before the hemorrhaging comes close to stopping. I gave many reasons for the
possibility of a hard break back in January at the onset of the last shake. One being of
course record amount of margin debt in the hands of so many new rookie
traders/investors.

This is one of the reasons why so many stocks are at unreal heights. $25 stocks that run
up to $300 in just a matter of months, not years. It’s a wonder things haven’t caved in
prior to the past few days.

I can see nothing what so ever to stop this free fall from continuing. The NASDAQ may
not stop until we see 3800 or so. I would like to note that the initial onset of a correction is
by far the fastest to traverse territory to the downside and therefor the most painful

Today we see stocks like Micro Strategy (MSTR) collapsing some $140 on bad news and
Abgenix (ABGX) dropping some $112. VIGN was down $46 at one time today on double
daily volume and this was repeated on all the major leading issues on the NASDAQ
today.

Many corrections on the NASDAQ go as deep as 20% off the prior highs. However with
the froth being so rampant in this major move and margin debt at record levels, I wouldn’t
be surprised to see the NASDAQ come down to the lower lows set back in January. This
could mean NASDAQ 3800 over the next 6 to 8 weeks. Of course no one knows where
the NASDAQ will ultimately wind up before we can get under way again, but I think a
healthy rest of some 8 weeks or more is in the cards for us and possibly up to 12 weeks.

I have a chart tonight showing various support levels on the NADSAQ. The upper line is
at about the 4200 area and the middle line is at the 3840 area and the lower line is at
3700.

I for one am a big lover of corrections and look forward to each and every one of them.
After all, the really big money is made when the market starts a new run off the bottom.
The sooner we can get down to more realistic levels, the sooner we can get going again.

A few notes for those of you shorting or considering shorting.

The time not to short is after a stock has moved down sharply for multiple days.

1/5
A break of a trend line like we saw today in HGSI can be very profitable. The stock can
often run back up under this trend line. This too can be a good time to short the stock.

A good time to cover your shorts is after the NASDAQ has gone below its trading bands
which you’ll see in tonight’s charts.

A good time to think about shorts is after the NASDAQ has had a 3 to 4% snap back and
your stock is at, but under the 50 day or just crossing below the 50 day.

Never chase a stock down and short it.

Here are some stocks to think about shorting. PPRO right here and all the way down
below the 50 day at $116. PLUG as it breaks a trend line at $104, PRSF, with its 50 day at
$63, REGN at 27, RZYM at $32, SDLI at $210 or better and be careful on this one, BGEN
at $70, BLDP at $94, CELG at $109 and this one looks fabulous, CMVT at $172, CRDS
at $115, CRGN at $108 and it too looks marvelous and in the ultra week group of the
Biotech’s,

Here are the charts for tonight

First up is the NASDAQ

Now on to some stocks I think are going lower based on the chart patterns.

2/5
3/5
4/5
I personally think this is going to be one of the nastiest corrections we’ve seen in a long
time.

CASH is king and the model portfolio is 100% in cash as of last week.

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 March 2020

Hello out there stock fans. Powerful moves late in the day from some of the big cap
stocks powered the NASDAQ to close on its high for the day. This move of course came
well after the NASDAQ was below its lower trading band which you’ll see in tonight’s
charts.

The fact that the NASDAQ closed on its high for the day is of no relief to the thousands of
investors that are holding stocks that have been crushed over the past week. Learning to
move quickly on the NASDAQ is a way of life for me. I wouldn’t be here if I didn’t.

Believing in my stocks is a thing of the past and believing in my stops are heavenly.

At any rate life goes on and big caps stocks are where it’s at right now. Yahoo! (YHOO)
broke out of a nice base today and ran up some $19 on good volume. Microsoft (MSFT)
has turned the corner and was up $5 on good volume. Sun Microsystems (SUNW) is
ready to break out of a nice base and I have a chart for you tonight.

Both box makers Dell and Apple computer are on the move as is EMC Mass on the
NYSE. It’s these big cap stocks with their heavy weighting on the NASDAQ that’s keeping
the OTC index up where it’s at.

There is much rebuilding work ahead on the charts of stocks that have just been trounced
before any serious return to selecting stocks based on chart patterns return. Here are a
few stocks to look at in the charts right now with JDSU back in the saddle again.

1/4
2/4
Here are two charts of the NASDAQ

3/4
Here are some charts to look at. QCOM at $137, ETEC at $128 and this stock is being
bought by JDSU so it will move in concert with JDSU. GNET at $89 and still trying to go,
LVEL at $41, WIND at $53, XLA at $176.

I will have more tomorrow

Daniel J. Zanger

P.S. The Fed.’s raised rates as expected which makes it a non-event and Micron (MU)
report earnings after the bell and they were less than expected and the stock is down $11
in after hours trading last time I checked. Also JDSU will not report earnings yesterday
after the bell as YHOO and another site said they would.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 March 2020

Hello out there stock fans. Snap backs in many badly and deeply oversold stocks and
new highs in big cap technology stocks were the strong points of the market today. Many
severely beaten down Biotech stocks got a lift today from a buy program and the start of
trading today that lifted most Biotech’s from $5 to $20. This is however is little relief for a
group that is down some 50% in just 2 weeks.

Many internet stocks also saw a good bounce today from deeply oversold conditions.
These stocks as well as many others have a long ways to go before positive charts are
rebuilt and a significant new move can begin.

If the NASDAQ can over come resistance that we saw in last nights charts and stocks
continue to rebuild with the vigor we saw today, we could have some good looking charts
ready for earnings season which is just around the corner.

Here are some stocks with a few buy points for the active chartist to look at with buy
points. QCOM at $137, GILTF at $141, ATON at $121, SCMR at $148 and BRCD which
is sure acting tough and may want to scoot to the upper trading bands. This closing today
of $171 maybe the best buy point area. The upper trading band stands today at $191.

Hopefully some charts will set up for Sunday’s letter and soon if the market behaves, we
could have some stocks for the model portfolio soon.

I will have more on Sunday

Daniel J. Zanger

Chartpattern.com

P.S. This is the wild west!

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 March 2020

Hello out there stock fans. The NASDAQ seems to have completed a snap back to the
trend line that was broken during the wicked sell off that took place two weeks ago. This
is mainly a result of the emergence of index heavy weights like INTC, CSCO, MSFT,
QCOM, AAPL, ORCL and DELL which have raced up in price to be at or near new highs.
https://chartpattern.com/Charts/OTC-03-26-00.gif

Except for a few very strong networking and fiber optic stocks that have snapped back to
prior highs like Emulex (EMLX) and Brocade (BRCD), the vast majority of stocks are still
off their highs by 20 to 60% and still licking their wounds from the severe pounding they
received two weeks ago.

Many of these beaten down stocks are consolidating at these lower levels and haven’t
even bounced up a little when the NASDAQ is having a good day. In fact, high volume
persists on the Biotech’s and it looks to me as though selling to dip buyers is keeping
these stocks depressed. Should this persist, these stocks will move much lower as
distribution from the institutions continue.

Many other high tech stocks like Check Point Software (CHKP) have similar chart
patterns to some of the Biotech’s. This stock, like so many others has had few buyers at
higher levels. These patterns suggest to me that lower lows are in store for this big winner
before it can rebuild and start a new leg up out of a base formation. Lets look at a few
charts so we can see the potential set up, for lower lows.

1/7
Here are just a few charts of the more than three dozen stocks that have collapsed over
the past three weeks and what they look like. You just never know if its going to be your
Brocade (BRCD) or your Human Genome (HGSI) that will completely collapse when a
break occurs.

2/7
Many times before, I’ve owned what I believed to be the best stocks in the market, and
never sold on the belief that this could never happen. I believed that my leading stock
would snap back. These beliefs have made me go near broke, more than once, owning
fast moving high P/E stocks. Never again will I believe in a stock. I will always sell and
wait for a new base to form when trouble hits the market.

3/7
During the past week there were some bright spots with numerous stocks breaking
resistance lines or descending trend lines and a few stocks breaking into new highs. To
me this says that a positive tone still exists in many areas and selected stocks in the
market as of Friday. While many many stocks are breaking down and should be sold, a
selected few look like buys to me.

4/7
Here are a selected group of stocks that have broken trend lines and who’s price action
looked good to me on Thursday and Friday. I was also quick to buy them too. In a few
days or so they will set up again with another buy point.

QCOM as you know was listed twice with buy points last week.

5/7
This upcoming week will be the end of the quarter for many mutual funds and often times
we see an end of the quarter window dressing bounce in many stocks. We maybe seeing
some of that now. The following week we may see a pick-up in selling. For me, owning
stocks is highly selective and selling any stock that undercuts a trend line or the 28 day
moving average line is a must.

Here are some potential stocks on the move with buy points. SMTC at $73, TXCC at
$121, YHOO at $202.

In a day or two, more stocks should set up with more buy or sell points.

I will have more tomorrow stock fans.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 March 2020

Hello out there stock fans. Stocks continue their retreat in grand style with most stocks
dropping $8 to $15 on only fair to light volume. Most tech stocks are down 20 to 60% in
just a few short weeks while the NASDAQ composite is down about 5%. This illusion is
costing many folks a vast sum of hard earned money.

This move down in many stocks is similar to last years sell off. That is that there is no
volume as stocks are dropping. Seems that there is no one left to sell your stocks to at a
higher prices. Where did all the buyers and bargain hunters go. Don’t they know these
great stocks are on sale.

Since there is no one left to sell your stocks to at a higher prices, this means your stocks
are going lower. Why own stocks if they are not going up in price. Makes no sense to me
even though I know of many folks that are "long term holders". Brain washing by Wall
street if you ask me, as many of these over inflated stocks will never come back to levels
seen in this hyper-inflated market.

Last nights stock pick, Juniper Networks had a spectacular day today gapping up at the
open and defying the market on news of a new router. The stock closed up over $30 on
near record volume and into new high ground. I wish it good luck going forward.

There are a few stocks that want to go lower in my opinion, so lets to get to the charts
and see what they look like now.

Entrust Inc. (ENTU)

This one too can’t seem to find buyers anymore.

1/6
S D L Inc (SDLI)

A very big winner here with a buy point back in October at $36. This stock may be ready
to rest with the others.

2/6
Rambus Inc. (RMBS)

This stock can really move, so its for the risk lover only.

3/6
P M C Sierra (PMCS)

Another super strong stock that maybe ready to rest.

4/6
Here are some charts of the NASDAQ and one of the leading indexes, the SOX index.

5/6
The model portfolio remains in cash until further notice.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 March 2020

Hello out there stock fans. Stocks continue their retreat in grand style with most stocks
dropping $8 to $15 on only fair to light volume. Most tech stocks are down 20 to 60% in
just a few short weeks while the NASDAQ composite is down about 5%. This illusion is
costing many folks a vast sum of hard earned money.

This move down in many stocks is similar to last years sell off. That is that there is no
volume as stocks are dropping. Seems that there is no one left to sell your stocks to at a
higher prices. Where did all the buyers and bargain hunters go. Don’t they know these
great stocks are on sale.

Since there is no one left to sell your stocks to at a higher prices, this means your stocks
are going lower. Why own stocks if they are not going up in price. Makes no sense to me
even though I know of many folks that are "long term holders". Brain washing by Wall
street if you ask me, as many of these over inflated stocks will never come back to levels
seen in this hyper-inflated market.

Last nights stock pick, Juniper Networks had a spectacular day today gapping up at the
open and defying the market on news of a new router. The stock closed up over $30 on
near record volume and into new high ground. I wish it good luck going forward.

There are a few stocks that want to go lower in my opinion, so lets to get to the charts
and see what they look like now.

Entrust Inc. (ENTU)

This one too can’t seem to find buyers anymore.

1/6
S D L Inc (SDLI)

A very big winner here with a buy point back in October at $36. This stock may be ready
to rest with the others.

2/6
Rambus Inc. (RMBS)

This stock can really move, so its for the risk lover only.

3/6
P M C Sierra (PMCS)

Another super strong stock that maybe ready to rest.

4/6
Here are some charts of the NASDAQ and one of the leading indexes, the SOX index.

5/6
The model portfolio remains in cash until further notice.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 March 2020

Hello out there stock fans. At least I hope your still stock fans after today’s bruising that
holders of stocks in long positions took. For many of you, its now clear why I’m so quick
at times to exit the stock market. I’ve seen breaks on the NASDAQ that are equal to what
we’ve been seeing on at least 5 different occasions over the past 15 years.

For those of you still long many of these leading companies, I can assure you we are still
near the beginning of the correction. Like I mentioned last week, the majority of the pain
is in the first few weeks. We still have some 8 weeks to go before the dust settles and
new bases begin to rebuild and probably 12 to 14 weeks before we see any meaningful
move up from much lower levels.

We did have some very fruitful winners in last nights selection of stocks that looked good
to short. PMCS down over $25 on better than average volume which is unusual in this
downward cycle. ENTU down some $13 on good volume, RMBS down over $17 on fair
volume and this stock like all the rest has more downside potential in it.

Let’s look at some more potential movers that may want to go lower.

Citrix Systems (CTXS)

1/4
Critical Path (CPTH)

Ciena Inc (CIEN)

2/4
Here’s a fresh look at the NASDAQ and you’ll see we are close to going below the lower
trading band which I believe will happen at the open tomorrow. After it does a snap back
might ensue.

Here are a few other stocks that are still above their 28 moving average line. This means
they may have more room to move down. They are, INKT, EBAY, TERN, YHOO, SNDK,
JNPR but be careful on it, RMBS has strong support at $300, which tells me a break
below $300 on volume is what it will take to move this stock lower.

I also think the Biotech’s have a long ways to go before we reach bottom on these. It
could take 6 months or more before they bottom out. They are however very extended
down for right now.

The model portfolio is 100% in cash and will stay that way until the dust settles.

Have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 April 2000

Hello out there stock fans. One of the most destructive weeks on the NASDAQ you’ll ever
see. Many stocks dropping 20 to 40% in just one week and many with losses of over 60
points during this time.

The internet stocks seems to be taking the brunt of the decline this past week. Just three
weeks ago the Biotech’s took a similar hit. Most stocks in these two groups are down now
at least 45% with many down as much as 65% in just about two weeks.

With so much punishment handed out over the past few weeks, I seriously doubt we are
going to find many people willing to step up to the plate and do bargain hunting now. Just
imagine how many people bought Emulex (EMLX) on its free fall from $224 to $109 in
just four trading days. This is just one of many stocks in free fall that have been cut in half
in just 4 days. Buying the dip in this market can have serious consequences to your
pocket book.

On Friday the NASDAQ saw selected stocks bouncing back in the last hour and a half of
trading. Most of these stocks were in the networking group like Brocade (BRCD) and
Broadcom (BRCM) or the fiber optic companies like SDLI. This may be some window
dressing by fund managers to buy for their fund what is considered the strongest stocks
in the market at the end of the quarter.

Let’s take a look and see a chart of the NASDAQ and EMLX to highlight what’s going on
in the market today. First up is a chart of EMLX to show you a very serious break. The
second is a chart of the NASDAQ and what may be a short term bottom and the start of a
new descending channel.

1/3
This week we get a peek at what the institutions have in mind for stocks during earnings
seasons as Yahoo reports earnings on the 5th of April. Most of the time YHOO runs up in
price before earnings are released and then is sold off rather viciously the day after
earnings are reported. Whichever way YHOO goes, it’s a good bet this action will set
precedent for other stocks that report earnings this month.

2/3
During the next two months, the volatility is going to be extreme in my opinion. Many days
going forward we’ll see stocks rallying for a few days, only to see them roll over again and
make a lower low, trapping those thinking they are seeing the start of a legitimate rally.

Until things calm down for a few days I can’t in good faith list any stocks that may look
good to rally up. Even though the market is deeply short term oversold, individual stocks
could turn on you in an instant.

As you know the model portfolio is and has been 100% in cash for over two weeks. It will
stay that way until further notice.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 April 2000

Hello out there stock fans. Nothing more than a melt down on the NASDAQ today with a
record 348 point loss in just one day. Many stocks continue under severe pressure with
no buyers to be found to buy the dip. I can only assume those dip buyers have taken a
large dip in their portfolios.

During the past week we have seen the folks on CNBC blame this that and everything
else, but this market was set to tumble like this anyway. The market is still far above its
200 day moving average line where historically, has been a good resting point for all
corrections on the NASDAQ. Frightening as it may be, this 200 day moving average line
today stands at 3431. YIKES!

My original low downside target on the NASDAQ was 3700 back a month or so ago. At
the pace we are going now, we could easily see 3431 in a matter of a few days. No
matter how you slice it folks, this is one of the worst breaks on the NASDAQ I’ve ever
seen.

I just hope all those margin traders have paid their taxes on their gains for last year
before losing it during this market break. I know a few that were holding out and were
going to pay at the last possible date. Remember you can only write off $3000 of losses
per year. I’m sure there are many out there that can no longer pay these taxes. A real
heartbreak to be sure.

Every time the market attempts a small bounce during the day, sellers quickly appear and
take control thereby, stopping momentum players from jumping on board and pushing a
stock up. This one of the reasons we are seeing stocks like RBAK drop $61, EFNT down
$50, RMBS down $37, EBAY down $32, SDLI down $36 in just one day.

In my opinion folks, we have a long way to go before valuations come back to reality.
Stocks like RBAK, JNPR, AMCC and others have P/E’s exceeding 500 and some of
these have P/E’s of over 3000. You read right, 3000. This would seem more realistic if
growth rates were 3000% per year, but there not. AMCC is growing at a 50% per year
and has a P/E of over 500!

There are many stocks with potential to go much lower and AMCC, JNPR, BRCD, BRCM,
RBAK EFNT, NATP, PHCM, INKT, YHOO top my lit of strong stocks that need to re-adjust
their valuations. All or most of these are still above their 50 day moving average line too.
Also, many of the stocks listed above, still haven’t broken their 50 moving average line
and I’m sure they will do this soon. This 50 day line is a technical sell point in a market
like this.

Here is a chart of AMCC and you’ll see it just starting to break down.

1/3
Be very careful shorting stocks this late in the game friends. This market is sorely in need
of a snap back which could trap you badly at any time.

Also I’ve been inundated with requests to do an in-depth seminar of reading and
understanding charts. Therefore I’ve decided to finally do one this summer either the last
week in June or the first week in July to be held at or near the Marriott hotel at the Los
Angeles Airport. I will also do one somewhere in the east coast in early fall.

This will be an all day event with me showing you how to read charts more effectively. It
will be on a Saturday from 10:am to 4:pm and will include lunch. For those of you
interested please send an e-mail to [email protected] and we’ll send you the info
you need. Seating is very limited so I can spend time with everyone.

I will have more on Wednesday and not tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. Tomorrow I have some important matters to attend to, and with the market in this bad
of shape there’s not much for me to say anyway so TOMORROW THERE WILL BE NO
LETTER.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 April 2000

Hello out there stock fans. On Tuesday we saw the biggest drop in NASDAQ history.
Fortunately record breaking volume kicked in mid morning as institutions came to rescue
this market in the nick of time, otherwise we were headed for a real disaster which would
have crippled this market for a very long time. Some of yesterday’s volume was short
covering. Yesterday’s action is also known as "climactic behavior" which is generally seen
at or near market bottoms.

Today the best movement in stocks was in the Biotech’s with CRA doing best along with
AFFX, HGSI, MLNM and ABGX with point moves of up to $41. Hard to say if this is the
start of a meaningful event or just a lot of short covering. In my opinion, all stocks,
including these will take time to do bottom testing and more horizontal basing before a
serious move up will start.

Many of us saw stocks stabilize for most of the day with selected stocks in strong groups
like Broadcom (BRCM) and Juniper Networks (JNPR) moving up continuously though-out
the day by some 15 to 25 points. However near the end of day, these big movers were hit
hard, thereby giving up all their gains and going quickly negative with 10 minutes left to
go in the day.

These sucker rallies and wild gyrations will continue for many weeks to come. I have said
here before, this correction will probably take 10 to 14 weeks to work its way through. I
also think we must go back down and touch or come near our recent low of 3650 for a re-
test of this low before we can start to say this correction is over with.

Yahoo! (YHOO) reported better than expected earnings and revenues after the bell today
and the stock was hit hard after a brief run up in after hours trading. The stock is now
down about $6 from its official closing. If the stock gets hit hard tomorrow on these "better
than expected" earnings and revenues, I can just imagine what’s going to happen to
many other stocks as they report similar "better than expected" numbers.

Until things settle down stock fans, it’s way to risky too do any holding of stocks right now
in my opinion. Even day trading is treacherous right now as I can attest to my own small
trades today.

Much better times are ahead and cash is my best friend.

I’ve had a overwhelming response to the seminar which will be held on June 24th at the
Sheraton Gateway Hotel at the L. A. Airport. The address for you is:

1/2
6101 W. Century Blvd. and the phone number is 1-310-642-1111. There will be special
room rates for all of you from out of town if you need a good place. We are still setting
things up over there, so they should be ready to accept calls for these rooms as of Friday.
Just mention Chartpattern.com for these low rates.

The Fee for this event is $795 which includes having a good time.

I will supply work books and I do suggest bringing a tape recorder. Lunch and morning
treats will be served.

Until things settle down, it’s almost impossible to show any charts right now or to list day
picks, but I will have some on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 April 2000

Hello out there stock fans. A powerful snap back continues on the NASDAQ bringing this
index back inside the lower trading band for the first time since Monday and Tuesday’s
plunge to 3650.

Snap back behavior is always strong and therefore misleading, as the job of the snap
back in my opinion, is to mislead many into thinking it’s the start of a new up trend. I can
tell you from my own mistakes over many years of trading tech stocks, that owning a tech
stock when it’s below a descending trend line will cost you money like you never believed
it could. This is why I very rarely, buy or own any stock that is below a trend line.

Most stocks including the NASDAQ itself are still in a technical down trend with a series
of lower highs and lower lows. Just because we have a strong snap back to lower levels,
does in no way, return this index or many stocks to new up trend behavior patterns. The
vast majority of stocks are still in defined down trends and will stay that way for some time
to come. See this chart of the NASDAQ by double clicking this blue hyper link.

This upcoming week there will be a host of earnings and economic data, which will
provide lots of volatility to be sure. Ariba (ARBA), Sun Microsystems (SUNW) Altera
(ALTR) and P M C Sierra (PMCS) are just a few of the leaders that will post earnings this

1/3
week. On Thursday the PPI numbers will be released and on Friday the CPI numbers
come out. This all adds up to be an exciting week of volatility.

The are a few stocks that look interesting for day traders. RMBS at $249, KANA at $64,
KLIC at $68, MXIM at $72, WGRD at $91, AAPL at $133, CDWC at $86, CPTH at $84,
NANO at $51, QCOM at $161 and SMTC at $72.

There is one stock that stands out in these turbulent times, Credence Systems Corp.
(CMOS). This stock is in the best looking group right now in this market (the
semiconductor group) and the earnings are special. For the last quarter ended in January
earnings were up 322% to .71 while revenues are up 284% to $101 million. P/E on this
stock is not that bad right now at 132, while the stock is growing at over 200% per year.
The stock is just now leaving its base and is still in a buy zone at the $150 to $158 area.
The sharp “V” bottom on this stock suggests this stock may need more of a rest here
above its trend line before it gets going. We shall see. See attached chart

Here is another stock ready to break through a trend line and a former model portfolio
stock.

2/3
This sell off in the NASDAQ will provided many opportunities to come. When these
opportunities arise, I’ll have them here for you. See you tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. Now that we are back inside the trading bands the chances of going back down to re-
test or find a bottom are much greater now. I’m very curious as to what happens when the
market has its first down day.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 April 2000

Hello out there stock fans. The NASDAQ continues its powerful correction with another
big down day after a very slight positive opening. The snap back is complete and we are
now in the next leg down, which may last another day or two.

The opening this morning had many stocks showing a sight gap in price at the open, but
there was almost no volume before the bell to accompany such gapping action. This gave
me a caution sign that we maybe in for a reversal today. In the next 45 minutes of trading
I noticed very high volume on most stocks with little upside price movement.

This was shorting in my opinion and selling into Monday’s strength of many people that
thought we must be at the start of a new up trend. I would like to reiterate that the rallies
you are seeing are nothing more than sucker rallies and “run the shorts” rallies. This
downward move in the NASDAQ will not exhaust itself for maybe 3 to 4 weeks, and a
bottom will not complete itself for another 8 to 14 more weeks.

I do have a chart tonight of a classic head and shoulders pattern. This little chip stock is
ready to roll over and head lower as of tomorrow.

Here is a chart of the NASDAQ and we can see it used the 50-day moving average line
as resistance.

1/4
There are many extended stocks still out there like EXDS and INKT that still are above
the 50 day moving average line. In this type of market when these stocks break through
the 50 day they are usually sold off hard. Let’s look at EXDS and INKT to see their 50 day
and the possibilities for a possible short.

2/4
3/4
I have received numerous e-mails in regards to me up dating the comment section of the
web site. I can see no reason for this right now until the market finishes its corrective
downward action.

As you know last nights’ stock CMOS started out fine but broke below the trend line that I
showed you in last nights’ letter. A break of this trend line is a technical sell signal. This
stock may or may not come back, but you never know. Therefore holding it could be more
trouble than you think if this market continues like this.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 April 2000

Hello out there stock fans. More downside action today as the NASDAQ sinks 132 points
on expanding volume to close the day at 4055. This leaves the NASDAQ below the lower
trading band for the second day in row. Soon the NASDAQ will attempt to snap back
inside the lower trading band once again, and if short positions are put on too low, the
snap back will trap those positions at a loss.

Even some of the bigger cap stocks like Oracle (ORCL) which is a heavy weight on the
NASDAQ index are starting to weaken. This stock is just now breaking off a head and
shoulders formation on an increase in volume. This stock can be a very slow moving
stock at times, so no big money to be made here.

It seems like so many stocks out there now have collapsed so far, it’s hard to imagine
much further of a drop in many of these stocks. However I do think we may have more to
go in some of the more expensive stocks. Stocks like RMBS, SDLI, PMCS, YHOO, INKT,
PHCM, EXDS and others.

I wish there were more charts tonight and some picks, but we’ll just have to hang on to
INKT and EXDS which worked out very well today from last night’s picks. INKT gapped
down at the open as did many other stocks and tried to rally mid day, but it, like so many

1/2
other stocks failed and subsequently were sold off at the end of the day.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 April 2000

Hello out there stock fans. The massive sell off in tech stocks continues as the NASDAQ
sinks another 286 points to 3769. Today’s sell off brings us closer to some strong areas of
support. Such as the low last week at 3650 and then lower is the 200-day moving
average line at 3494.

Many stocks are getting crushed on good earnings like big cap Motorola (MOT) and today
Terayon Communications (TERN) which sank 43 points on record volume today after
earnings were released the night before. There is clearly no safe place to hide in this
market except cash and possibly going short. Then again everyone should have been in
cash when the model portfolio went to cash almost 4 weeks ago.

Today we also saw most all of the notable big cap tech stocks like Cisco Systems
(CSCO), Oracle (ORCL), Sun Microsystems (SUNW), Nortel (NT) and big cap chip stock
Texas Instruments (TXN) all break support areas on volume. This break in these index
heavy stocks will surely help the NASDAQ get down to more reasonable levels much
sooner.

Tomorrow the PPI report for April is going to be released and if positive, could be a short-
term boost for this market as we are deeply short term over sold. On Friday the CPI is
due to be released and the same could be said for this on Friday.

I really thought we would get a bounce today during the day and again the market tried
and once again, this rally attempt failed. I also thought we would get some short covering
at the end of the day and sure enough this didn’t materialize either. This lack of short
covering at the end of the market suggests we are headed lower tomorrow regardless of
the PPI data. Stay tuned.

If we fail to bounce during the day tomorrow I have some selected stocks that look like
they want to get cheaper. I must admit I love high powered tech stocks that are cheap
when the market turns. The cheaper they get now, the more money I can make later. At
any rate here they are.

1/4
2/4
3/4
Here are some other stocks that look like they want to go lower too. MRVC at 72, MUSE
at $77, NEWP at $93, TIBX at $54, AETH at $110

Be careful on the shorting my friends and I’ll see you on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 April 2000

Hello out there stock fans. Nothing better than and a good old fashion market crash to
bring everyone to their senses. Fund managers had been sniffing glue for far to long. It’s
no wonder stocks were as far out in the stratosphere as were their hallucinogenic
imaginations.

At the top of the market just four weeks ago, the aggregate P/E on the NASDAQ was at a
whopping 264. After this weeks mini crash, the P/E on the NASDAQ’s was at 174. You
might think this is much better, which it is, until you find out that the historic average on
the NASDAQ is 54. Look out below!

Also at the top of the market 4 weeks ago, the NASDAQ was 55% above it’s 200 day
moving average line, which by the way is about double the extension from any other
period in the history of the NASDAQ. With Friday’s close at 3320 we are now about 7%
below the 200 day. History says we are a long way from a low here.

All bear markets on the NASDAQ, except for one, have ended when the NASDAQ was at
no more than 36% off its prior high. We are now 35% off our prior highs and probably will
go lower as there is a large amount of margin calls on both the NASDAQ and the NYSE
due this upcoming week. Monday could be a black Monday folks.

That one exception by the way was the great bear market of 1973 to 1974 when the
NASDAQ dropped some 60% off its high over a two year period of time.

It’s not out of the question that we may be witnessing a death spiral in stocks unless
something, someone or many institutions get together to support this market. Not only will
continuing margin calls force this market down, but fear may soon get a grip on many
investors which could prolong and extend the slide.

Tonight I have a chart of the NASDAQ and where its next big area of support lies. It may
take this area to stop this speeding train. It’s a chart of the NASDAQ compressed to a
weekly format.

1/3
There are many lessons to be learned here in this market break. Many lessons which
many of you will never ever let happen again to you. Most of the lessons are listed at the
end of each letter and they are there for this very reason.

By the way there are some fabulous testimonials on the testimonial page on the front of
the web site that may be of interest to many of you.. All of them are well worth reading
and all of them are from members here at Chartpattern.com.

When and if a bottom is made, I will bring it to you as soon as I can recognize it. Most of
the time I look for horizontal work and/or double bottoms confirmed by up days.

I will have more for you tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 April 2000

Hello out there stock fans. A powerful snap back due to buy programs late in the day
combined with short covering, pushed the NASDAQ to its biggest one day gain in history.
It would appear at least for now, that NASDAQ minus 35% is a magical number for bear
market bottoms regardless of the aggregate P/E of the NASDAQ (See yesterday’s letter).

The buying today was in only a handful of selected chip stocks, fiber optic stocks and big
cap software stocks like ORCL. P M C Sierra (PMCS) was the big winner today up over
$40, while Broadcom (BRCM) was up $26 and AMCC was up $33. Most all of the stocks
with big gains today did so on double daily average volume. A very positive sign for these
stocks going forward.

I would like to remind everyone that all of the big movers today are in snap back mode
from deeply oversold conditions. All of these stocks are still in a technical down trend until
they can prove otherwise. A break of a descending trend line on volume would be the
start of technical turnaround in these issues and some may even do that soon, while
others that snapped back today have a long ways to go.

I would like to note that the NASDAQ may snap back to its lower trading band which as of
tonight stands at 3853 and this lower trading band is descending daily. We could also see
a 50% retracement of the move from 5132 to today’s low of 3227. This would put the
NASDAQ back to 4179. Which would complete a technical retracemnet. This snap back
could last a few days to a week or so.

Tonight I have a stock with very good earnings which it posted last week and it may be
ready to break a descending trend line to boot. Powerwave (PWAV) is the stock and I
listed it here 8 weeks ago when it was at $95. It promptly went ballistic rocketing up to
over $200 in just a few short weeks.

Earnings for this company were up 336% to .48 and revenues were up 86% to over $103
million. There is only a little over 20 million shares total on this little company so its no
wonder the stock can move rapidly. See attached chart.

1/3
I do have a few day picks if the market continues to move up. SUNW at $86 and VIGN at
$50. Of course there are many other stocks ready to go, but as usual, I will wait for further
consolidation before I list them here.

I would like to note that there are a number of mutual funds out there in the technology
area that are relatively new. Most of them are run by young fund managers. These guys
that are in charge of hundreds of million and in some cases billions of dollars. These are
the guys that were paraded on CNBC extolling the coming of the new paradigm and who
must have believed in there own hype and they clearly must have felt omnipotent.

Ironically it was these young sharp shooters that were crushed by the sell off last week
with some having staggering losses of over 40% in just one week. Some of these funds
are down as much as 55% for the year and all of these losses were incurred in just the
past four weeks.

One of these funds was the Jacobs Internet fund and another was the Munder NET NET
fund. This is just to name a few of which there are many. Maybe these guys could use
some charting lessons. I do have a seminar coming up June 24th.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 April 2000

Hello out there stock fans. The NASDAQ continues to snap back in record fashion with its
biggest one day point gain for the second day in a row. This 254 point gain also came
with the NASDAQ closing on its high for the day on near record volume. Look for more of
the same tomorrow would be my guess.

Bear market one day, bull market the next, it doesn’t get any wilder than what we are
witnessing these days. The NASDAQ is averaging 3.5% price swings per day over the
last 4 weeks. Extreme volatility is what I said we’d get as we approached earnings, but I
sure had no idea it would get this wild.

The NASDAQ is just a little over 100 points away from its lower trading band. It should
get very interesting once we are back inside this band again. I have a chart of it tonight
and you can see what I’m referring to. Soon we’ll have a descending trend line along with
the 28 day moving average line that may impose some restriction on price movement as
we approach this area.

I hear many "stock gurus" talk about a re-test of the lows set on Friday, but with the
strength of what I see now, I myself am having reservations about a test of the 3200 area
or a double bottom. To be sure, a straight up continuation to 5000 is highly unlikely as
well. Maybe something in between these two extremes until the volatility calms down.

Last night stock PWAV had a wonderful day today as it vaulted past that trend line I
showed you and it closed the day up $20 on near record volume. SUNW and VIGN did
well too and both are leaders in their respective categories. Look for higher highs and
new 52 week highs on all of these over the next few months.

Tonight I see more and more stocks setting up for the active day trader here are some
potential movers with buy points. CHKP at $181, CMRC at $89, CMTN at $79, GMST at
$47, PHCM at $84, SEBL at $128, SLAB at $88, SNDK at $105, ITWO at $98 and VRSN
at $145.

Here is a chart of a mover that is ready to possibly break through its new descending
trend line.

1/3
Here is a chart of the NASDAQ

I will have more tomorrow

Daniel J. Zanger

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 April 2000

Hello out there stock fans. A pretty good day for many stocks until things started to fade
mid day. Many stocks that were up 10 to 15 points wound up the day being up fractionally
or down 2 to 6 points by the end of the day.

Seems the NASDAQ covered enough ground for now and profit taking set in on many
stocks as the NASDAQ moved up to its lower trading band. I do see many bright spots
amongst all the wreckage, and over time this backing and filling process will yield many
new winners. It is time consuming though and can be frustrating.

Tonight I have a few charts of some potential winners that if the market stays flat to up
and earnings are better than expected, then these stocks could do well. Before I get to
them please note that after such a hard and severe break in the market most stocks will
stay down and need at least 2 to 3 months for them to re-build their bases before they
can get under way again. It will be slim pickings for the next two to three months and lots
of short term trades.

On tonight’s selections please note that I did buy some of INSP today.

1/3
CHKP reported earnings last week and they were fair in my opinion.

The only day trade pick for tomorrow would be SDLI at $166.

2/3
Last nights’ stock selection Business Objects (BOBJ), didn’t break out today. It might take
another few days or so before it does. We’ll see.

In a few weeks or so the NASDAQ will approach its descending trend line. When it breaks
through this line it would be a significant move and by then we should start to see more
leading stocks ready to lead the market up again. The market will be ready for model
portfolio stocks by then.

I will see you all on Sunday

Daniel J. Zanger

Chartpattern.com

P.S. I do see many stocks setting up with what will be a chart pattern known as "Inverted
head and shoulders". This pattern can be very effective for good buying.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 April 2000

Hello out there stock fans. Despite two record setting up days early last week the vast
majority of stocks continue their pattern of lower lows and lower highs. Lower lows is
technical jargon for "you're losing money if you're long stocks".

Many leading stocks have weeks if not months of rebuilding work ahead of them, while
many stocks that participated in this massive rally that expired 5 weeks ago will never see
the light of day again. I know it’s a heartbreak for many of you, but many of these
NASDAQ stocks will never recover.

There are a few stocks that are starting to look fair on the charts and are showing signs of
life. A few of these are PWAV, CMOS, CMTN and CREE. All of these are in the chip
sector and have powerful earnings. For now the market is buying earnings and not
revenue growth like it had been doing for the past 2 years.

A few of the fiber optic stocks are hanging tough like PMCS and SDLI. There are some
software stocks that look good too like BOBJ and BEAS. Some of the internet stocks
seem fair right now, but have months of work in front of them.

As you know this year there is a Presidential election and historically the market has done
well leading up to it. Combine this with very strong earnings for many sectors and we
should have a positive bias for selected issues going forward. I would also like to note
that historically, the month of May is the poorest month as far as returns go for the stock
market.

Therefore I think we might we see better action in selected stocks come June through
October. This would also coincide with my 10 to 14 weeks of rest that I talked about some
4 weeks ago. Like I said last week, it’s going to be slim pickings for some time to come
due to the severity of the market break.

There is only one stock to show or list tonight due to poor market action on Wednesday
and Thursday of last week. That one stock is BOBJ at $96.

I’ll see you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 April 2000

Hello out there stock fans. Microsoft (MSFT) gives a revised revenue forecast for 15%
annual growth going forward and the street gives this stock and all other technology
stocks and good beating today.

The NASDAQ gapped down at the open today and never looked back. Selling picked up
heavily at the beginning of the last hour of trading, only to see a quick reversal on buy
programs and short covering in the last half hour of trading before tomorrows economic
numbers. This late day action helped many stocks recoup steep losses.

The NASDAQ is now as deeply oversold as it was at the bottom of the market break back
in October 1998. The difference now however is the Fed.’s are raising short term interest
rates, while back in 1998, the bottom was marked by a cut in short term rates. Still a
market this oversold, will at some point, work it off.

If you back out MSFT’s extreme volume of over 150 million shares today, then volume on
the NASDAQ was well below average. This means selling pressure is starting to abate
and soon we may see a bottom. I think a little more time needs to be tacked on and the
Fed meeting in May to be over with, before a real solid footing on the NASDAQ can be
had.

Tonight I have a longer term chart of the NASDAQ. That is a chart of daily price
movement compressed to a weekly format. Here you can clearly see the big picture.

1/2
I do see some stocks trying to put in a bottom and maybe tomorrow I can start to list a
few. One or two more days are needed for more chart pattern development before I can
show you anything that might work.

Remember folks, good times are followed by bad times and bad times are followed by
good times. Right now we just need more time period.

Have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 April 2000

Hello out there stock fans. The NASDAQ had another record setting up day in two weeks
and many stocks were moving very well. Some stocks moved so well today they broke
formations I thought would take another day or two.

I’m now ready to start a new model portfolio like I said I would this past weekend. I might
even get it fully invested tomorrow as many stocks are on the move in a big way. A
market this deeply oversold has always proven to be a grand buying opportunity. So lets
take a jab at it and see how it does.

There are many stocks to list for the model portfolio so lets get with it.

The following stocks will go into the model portfolio when they hit buy point listed in
tonight’s charts. They are as follows. Copper Mountain (CMTN) 400 shares at $82,
Powerwave (PWAV) 300 shares at $182 or as close to it as possible. Infospace (INSP)
400 shares at $67, Check Point Software (CHKP) 300 shares at $177, Brocade (BRCD)
400 at $112 and Commerce One (CMRC) 400 shares at $57 with no chart on it tonight.

As you know its a margin model portfolio which started back in January with $100,000
and is now up to about $120,000. I multiple this by 2 and this give me $240,000 in buying
buyer. With these 6 selections here tonight, I will have bought about $234,000 in stock.
Close to the limit to be sure. Please do the math yourself.

Here are the hyper links to double click to get a clear picture of these potential winners.

1/6
2/6
3/6
And don’t forget CMRC which is not shown here tonight.

Here are some other picks

4/6
Here are some day trading ideas with technical buy points for this type of market. ANAD
at $71, ARPT at $94, INKT at $143, KLIC at $78, JNPR at $193, NEWP at $107, TERN at
$91, VERT at $46, VRTS at $107.

I will have more for you tomorrow

5/6
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 April 2000

Hello out there stock fans. A very strong opening today followed by a slow and
continuous sell off that by the end of the day, had many leading stocks including our new
model stocks lower at the close.

Seems tomorrow’s employment cost index and GDP numbers that are due out have put
the brakes on our ascent from lower levels. I would like to say that currently we have 220
plus point up days and 100 point down days.

Even though we might get another tough down day, I would still classify this type of action
as "backing and filling" as its known in the industry. I would say the same for most stocks
that I track and for the model portfolio stocks as well.

For the record I will put the following stocks into the model portfolio at these prices. INSP
at $67, BRCD at $114, CHKP at $179, CMRC at $57, CMTN at $83 and PWAV which
announced a 3 for 1 split after the bell will go in at $187, which is an average of today’s
entry point pricing that was set last night.

Infospace (INSP) reported much better than expected earnings after the bell and the
stock is holding steady. It will respond well as soon as we get an up day in the market
would be my guess. Check Point Software (CHKP) needs more time, but acts well as do
all of the rest.

There are no stock selections of any type tonight due to today’s market action. It does
seem good buying opportunities come when the NASDAQ is near 3400 and resistance
for now is about 3700.

I will have an undate tomorrow on our model stocks if warranted, otherwise I have more
on Sunday. Again there are no preset stops on model stocks.

Daniel J. Zanger

Chartpattern.com

P.S. Tomorrow I will start the comment section again in the member login area. I suggest
for new members to review a few of my picks from last year before they are gone. A truly
amazing year for everyone.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 April 2000

Hello out there stock fans. Another head fake by the market to make sure all of the weak
holders of stock are out of the market. This is so the pro’s can rally stocks knowing all
holders left owning stocks have tight hands and will not sell easily. This makes pushing
stocks up more easy.

Today’s hard gap down is also one of the main reason why I’ve removed preset stops
from model stocks. We would have been checked out of all of our stocks with today’s
opening action.

By the way all of the model stocks preformed well today and soon we should have extra
cash in the margin portfolio to add another stock. So everything is off to the races it
seems for tomorrow at least.

Here are a few charts of some leading internet companies with stellar earnings reports
and these stock are set to move. Broadvision (BVSN) seems set to move now and ITWO
may need another few days.

1/2
Here are some picks with technical buy points for active day traders. EBAY at $164, INKT
at $151, JDSU at $100, NTAP at $69, RFMD at $96, VRTS at $106, YHOO at $127.

See you on Sunday

Daniel J. Zanger

Chartpattern.com

P.S. Update on comments section will be done tomorrow.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 April 2000

Hello out there stock fans. The NASDAQ continues its rebuilding process with many
leading stocks coming up towards prior highs. Many other stocks that were badly broken
down during the market break, are rebuilding nice bases at lower levels. After the
rebuilding process takes hold and bases become more complete, we should start to see
significant moves in internets, fiber optics and maybe even a few of the Biotech stocks.

Speaking of the Biotech’s, they finally woke up on Friday and the Biotech index (BTK)
made a nice move. This index is ready to break a down trend line as well. This could
signal the start of a new move in selected strong stocks in this group. The best of course
moved Friday and they are CRA, IMCL, AFFX, HGSI, MLNM, PDLI. Most of these are in
Gene research which is a very hot field right now.

I also have one Biotech stock that is ready to break a descending trend line and here is a
chart of this prior big mover.

A few of our model portfolio stocks did good on Friday while some of them like CMTN and
CHKP need a rest of a few days before moving higher. PWAV is acting best and INSP
along with CMRC may need more time too, but all are looking very good on the charts.

I may make a few adjustments to the model portfolio if a few of the current stocks fail to
get underway soon. Here are some of the stocks I’m thinking of adding listed by tick
symbol. ITWO, SDLI, PMCS, AMCC, VERT, ARBA, CIEN, AVNX, RMBS, AETH. All of

1/2
these stocks have stellar earnings and are leaders in their respective fields.

Here is a chart of the NASDAQ and here you’ll see the NASDAQ breaking its descending
trend line on Friday. A very good sign for things to come on the NASDAQ.

Here are some potential picks for the active day trader. EBAY at $164, NSOL at $150,
PCLN at $68, PRSF at $47, VRSN at $141 and SILI at $86.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 May 2000

Hello out there stock fans. More rebuilding of bases today in many beaten down stocks
with the Biotech’s being the winners today as a group. All of the Biotech stocks that I
listed here last night like CRA, HGSI, AFFX and others were up from $8 to $16 on good
volume as many of these broke through their first major resistance area the 28 day
moving average line. This is also their second straight day of movement, which
technically confirms the move in these stocks.

Many other stocks were on the move too and over the course of the next few months we
should see many stocks setting up good sound bases from which to find very good buy
points. We will even find some new winners that weren’t around the last time the market
moved. So stay tuned stock fans they is much more to come.

As stocks move up they will of course stall out as resistance areas are hit. They will then
go horizontal or down slightly which creates bases in which to safely buy from. Some of
those that are setting up are ITWO, SDLI, PMCS, INSP, and others.

Here is a look at two of these and remember that the trend line descends daily. It’s also
possible that some of these will go through their trend lines, but will then go horizontal
and not vertical like I hope they would. This too is all part of the rebuilding process. By the
way one of the model stock are doing this very thing right now and that stock is Check
Point Software (CHKP).

This stock blasted through its former trend line but was hit hard by a seller that was
controlling the basing action of this stock. The stock rested fine for a few days and by late
today, it started to act very frisky. This tells me its time to go higher and tomorrow it just
might do that. It also has a new buy point as it comes out of it “Darvis box” formation and
that would be at $184 to $187.

Here are some other big winning stocks that are leaders in their respective fields and both
are sporting recent earnings and revenues numbers that exceed 90% for this last quarter.

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Here are potential movers for the active day trader to look at. SDLI at $203, ARPT at
$109, BONJ at $102, CMOS at $150, CMTN at $90, ESIO at $65, INCY at $89.

I will have more tomorrow stock fans.

Daniel J. Zanger

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 May 2000

Hello out there stock fans. The NASDAQ market seems to have found resistance for now
at the 28 day moving average line which stands today at 3988. Since resistance may
have been found here, momentum traders will no longer hold positions and sell. This
maybe what we saw today.

Tonight I have a chart of the NASDAQ and the next support line for now which is the
descending trend line that was broken just a few days ago. This could mean another 150
points of downward pressure before the NASDAQ comes close to support.

It seemed to me volume was very light all day long. It wasn’t until the last hour and a half
of the trading day before sellers dominated what few buyers could be found. It took just a
fraction of daily average volume to sink many strong stocks in this time period. One of the
more notable issues to drop was SDLI. It dropped some $20 in just the last 2 hours of
trading on only 900,000 shares. This is a hefty point drop on such light volume.

It seems to me like the NASDAQ might get stuck in a trading range for some time. Maybe
similar to the behavior we saw last summer when the NASDAQ traded between 2200 to
2800 for an extended period of time

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Maybe the NASDAQ trades between 3500 and 4000 for a few months. If that’s going to
be the case, then buying the NASDAQ as it gets closer to the 3500 area might seems like
at good idea. This of course would mean selling when the NASDAQ gets back to 3900 to
4000 or so. Again this could be good for the more active trader.

Due to market action today there are no charts to show. I would like to note that I WILL
NOT have a letter this Sunday nor the following Sunday.

I do think all of the model stocks are in fine shape and are acting fine. INSP, BRCD,
CMRC, CMTN, CHKP and PWAV all look good. This market sell off will only serve to give
strong stocks such as these more horizontal action which will only strengthen and extend
their bases.

I will have more NEXT MONDAY and NOT this Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 May 2000

Hello out there stock fans. So far we had a good test of the descending trend on the
NASDAQ. At the end of the day short covering pushed up many stocks that were deeply
sold out for two days. Many stocks that were down 13 points or more quickly regained
footing and closed positive like Tibco Software. This too is one of my favorites and
possibly a model stock in the near future.

With the market down close to support, I felt it unwise to set stops for our model stocks.
All but PWAV did fairly well given the circumstances of the day. Brocade (BRCD) was in
my opinion hit with one of two options. One was a quick bout of illegal short selling which
caused the stock to drop by 10 points on just 30,000 to maybe 100,000 shares. Another
option is preset stops by members or others that were triggered thereby pushing the
stock down to an unnatural level. This brings in buyers of course and the stock quickly
pops back up. This is one of the reasons why I do not like preset stops.

All other model stocks look fine, but I’m very concerned about Powerwave (PWAV). It has
a strong gap down in price today and found support at $166, which is a technical support
area. I suggest setting stops at $166 just in case.

Soon I will move out stocks that are not going to respond. I do find the basing action in
most of them fair for now. Here is a chart of the NASDAQ and I would have more for you
today, but I have a plane to catch, sorry. Hopefully tomorrow I can have a late letter for
you.

1/2
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 May 2000

Hello out there stock fans. Bonds are moving lower sending interest rates higher
combined with a Fed meeting next week have sent buyers into hiding. Many stocks
dropped $5 to $15 on less than half their daily average volume today while some stocks
have dropped this amount on only 25% of daily average volume. A buyers boycott to be
sure.

What is troubling to me is that many of the stocks that were rebuilding their bases and
beginning to look good like SDLI and PMCS, have rolled over and are now looking like
they want to go lower. Many other stocks are in the chip sector as well as some in the
software sector including the internets.

Many stocks and the NASDAQ itself, are showing a bearish wedge formation. This
formation will resolve itself soon and it may not go in our favor. Even though we have
volume drying up which can be technical good, volume could pick up as these wedges
are broken to the downside and trap us in some of the leading stocks in the stock market.

Therefore I think it best to raise cash in some of our model stocks that are underwater like
Commence One (CMRC) and Infospace (INSP). I will sell CMRC and INSP from the
portfolio tomorrow. I will average prices for both and enter them in the web site sold as
such. I think both are super stocks and will come back when the market is felling better,
but for right now these two stocks are not where the action is.

The other model stocks BRCD, CHKP, CMTN, and PWAV are acting well and very strong
and could hold up if the sell off is not to severe. We have a profit on these and I will keep
everyone posted on any changes.

Let see some charts of this bearish wedge that is forming on numerous indexes. First up
is the Computer index (XCI) and then the Goldman Sachs Computer index (GSO) and
last is the NASDAQ.

1/3
2/3
No telling how much further to go in this correction folks, but with strong stocks rolling
over like they did today (SDLI, PMCS and others) I suspect we’ve got at least three
weeks or more before a sustainable rally can ensue and this may come from a NASDAQ
that is lower than it is today.

So far this correction is 8 weeks old and counting. Cash is looking better to me right now
than it did just last week.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 May 2000

Hello out there stock fans. Lower lows again as the NASDAQ cut through yesterday’s
ascending trend line as volume picked up to 1.35 billion shares. The NASDAQ dropped
84 points today bringing the NASDAQ to rest on its 200 day moving average line. Will the
NASDAQ find support here or will it continue lower.

Seems to me that if there were no buyers just a few days ago at $20 higher on many
stocks, then it makes no since that buyers would want them again back again now. This
suggests to me that this market and many stocks may go lower over the next few weeks
until buyers emerge to scoop up perceived bargains.

Today two of our model stocks Brocade and Check Point Software (CHKP) had heavy
early morning volume and were headed for lower lows along with many other leading
stocks. Therefor I felt it was no longer worth risking any more money on these two stocks.
In time they may rebuild their bases and have better volume characteristics, but until that
time, cash is a better place.

Here is a chart of these two stocks to show you what I was seeing today.

1/3
Since I e-mailed out during the day to exit these two stocks out of the model, I will check
both of these two out near their lower trading range of the day. BRCD at $110 and CHKP
at $164. Everyone should’ve had a chance to get out at around these prices as they are 4
to 6 points below where the stocks were when I sent out the e-mail.

Powerwave (PWAV) and Copper Mountain (CMTN) both have super earnings and much
lower P/E’s and are still acting well.

Hard to say where the market goes from here. Maybe we get a big relief rally after the
Fed.’s raise rates on Tuesday of next week. If that’s the case maybe that rally too turns
out to be a bear trap. So far this is certainly one of the nastiest bear markets I’ve seen in
quite some time.

Again we are 8 weeks into this bear market and rally attempts so far have failed. It maybe
that we go the full distance time wise that I suggested we might see back in March of 12
to 14 weeks before the downward pressure stops. That would put us out into June. Who
knows maybe we rally into earnings season of the 2d quarter that starts in July. I certainly
hope so as boredom is not my specialty.

We are somewhat oversold and could rally tomorrow on Cisco’s positive earnings that
came out tonight.

Have more tomorrow

Daniel J. Zanger

Chartpattern.com

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 May 2000

Hello out there stock fans. The NASDAQ couldn’t find support at any level today as all
rally attempts failed. With today’s 200 point slide the NASDAQ is very close to breaking a
major trend line which you will see tonight.

The support area is the rising trend line that dates back to the start of this big run in
October of 98. This line now stands at 3306 on my NASDAQ weekly chart that you will
see by double clicking the blue hyper link below. With today’s close on the low and the
chart pattern that it is exhibiting, we are more likely than not, going to break down even
further. Next stop would be the old high of the big base that we made back in October at
the 2860 area. Here is the chart of the NASDAQ compressed to a weekly format or the
big picture as I refer to it.

It was today’s market action that told me to exit our final two model stocks and quite the
surprise it was to me. With so many of the big cap leaders breaking down like Applied
Material (AMAT), Sun Microsystems (SUNW) just to name a few, I felt certain that this line
of 3306 would be in jeopardy. A break of this support line and we are heading south in a
big way and there is not a stock around that will stand up to the punishment. No since in
handing out our money for a belief in P/E’s or fundamentals.

1/3
I emailed everyone the news today of exiting our model stocks when PWAV was at $172
and CMTN was at $77 to $78. CMTN wore down during the day to $71 or so, while PWAV
held up fine all day. PWAV even bounced up to $175 after the e-mail. It wasn’t until the
last half hour of trading that PWAV rolled over and broke down to $160 in a flash. So I will
take PWAV out at $167 and CMTN out at $74. Some of you got out higher and some of
you got out lower. I can’t please everyone in a fast breaking market.

By the way I forgot to include INSP and CMRC in yesterday’s letter and their exit points.
Remember I was to average out on these two with yesterdays’ total price movement on
each. Therefor INSP is out at $54 and CMRC at $49.

Tonight I also have a chart of the Dow (DJIA) compressed to a weekly format and its very
nice head and shoulders formation. With inflation on the rise and the possibility of a big
rate hike this Tuesday, this pattern suggests downside action is coming up on this leading
index. My chart system is not working well tonight and cuts off the text on this chart so it
should read "could start this index moving down"

The combination of these two charts, the NASDAQ and the DOW, suggests to me very
tough sledding is ahead some time to come. This is one bear we don’t want to wrestle
with any longer.

Even though we are deeply oversold now that doesn’t seem to be enough to help this
sinking Bull. I would like to mention that even though we are oversold short term we are
very over bought population wise. I will get into that and many other interesting items at
the seminar I will be giving in LA on June the 24Th.

2/3
I may have a short letter tomorrow folks, if not I will have more this Sunday as I have
postponed my brief vacation plans due to the market. Maybe the following week I’ll take
that Sunday off.

Daniel J. Zanger

Chartpattern.com

P.S. If the trend line holds at 3306 then we could see a big rally. I’m not holding out much
hope though.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 May 2000

Hello out there stock fans. Two powerful down days last week on rising volume followed
by two days up on Thursday and Friday on lighter volume. The market is unwilling as of
yet to comment any large investments until the Fed.’s interest rate outcome on Tuesday
of this week.

The NASDAQ market is still deeply oversold and if the market likes what is sees on
Tuesday, the NASDAQ could do more rebuilding work with a break of a second
descending trendline that I have for you in tonight’s chart. There is still so much damage
to the NASDAQ that even with a big rally, this would only help in rebuilding many charts. I
doubt we’ll see any meaningful continuation of a rally that would last for months.

Here is a chart of the NASDAQ and its first descending trendline that I showed you a few
weeks ago and the new higher line that is now acting as resistance. A break above this
line would be very good for the market.

The only other stock in the market right now that is looking good in the tech sector is
Ciena (CIEN). This stock has put a handle on a cup thereby giving it a "Cup and Handle"
formation. I though with Friday’s lift this stock would do better and I bought into the rally

1/2
but the stock stopped short with Friday’s weak close. It still is the best looking and acting
stock in the market right now.

This stock could be a big winner going forward.

Again the market is on Fed watch until Tuesday so I don’t expect much if any upside
action until Tuesday. Also that lower long term line at the 3300 area needs to hold or we
will certainly see lower lows on the NASDAQ possibly down to 2860 or so.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 May 2000

Hello out there stock fans. The NASDAQ closed up nicely today after being down for
most of the morning. This good close also brought the NASDAQ up to close at the
descending trend line that I showed you in last nights letter.

The market seems poised to rally on the news of a Fed tightening of interest rates
tomorrow and this should break the descending trend line and set stocks rallying. The
break of this trend line is a big step in the NASDAQ rebuilding process.

I have a few charts tonight of some stocks ready to go. First up is SDLI. This stock acts
very well along with last nights stock selection Ciena (CIEN). I will also add SDLI to the
model portfolio, 300 shares at the $196 area as it goes over the line tomorrow and pay no
more than $203.

I will also add Ciena (CIEN) tomorrow at the $143 area on up to $150. I will add 400
shares of this stock.

Here is the chart of the NASDAQ and how it looks after today’s action.

1/3
Here is another chart of one of the leading biotech’s. By the way many of the biotech’s
are basing very well and are sure to big good movers again.

2/3
Here are some day trader picks to look at for tomorrow. PDLI at $130, DNA at $132,
ETEK at $184, RMBS at $203. You can see here that two of these PDLI and DNA are
biotech’s.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

P.S. For many of you that are new here, we have more often than not found it best not to
buy stocks in the first 30 minutes of the day. Many times market makers will gap open
stocks at the open and quickly sell them off trapping you.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 May 2000

Hello out there stock fans. A nice break of the descending trend line on the NASDAQ
today with a close near its high on fair volume. Many stocks did very well today with last
nights new model portfolio stock SDLI, having an outstanding day today with its near
record volume of 6 million shares and a jump in price of over $22 to close the day at
$217.

Ciena (CIEN) also had a very good day and a strong close as this stock moved up and
out of the basing area today on very good volume along with a close near its high of the
day. The stock gained over $11 and closed at about $152. Both CIEN and SDLI are now
in the model portfolio as of today for a grand total of two stocks in there now and more to
come. CIEN is in at $146 and SDLI at $200.

The are quite a few stocks that are coming around and approaching their descending
trend lines. There should be some good picks going forward is my guess. Here are a few
more to look at along with a chart of the rebuilding NASDAQ.

Here is another look at SDLI and how it looks after today’s big move.

1/5
Here are some other stocks that are looking pretty good to go. I will add 300 shares to the
model portfolio of JNPR when if breaks this trend line at $187. It may need a few more
days before is goes, so stay alert if you need to.

2/5
Here is a old time big favorite that is set to move again, but I doubt it will move like it did
from October through February of this last market move.

Here is a stock that I will put into the model portfolio when it breaks this horizontal line at
$157. This stock was a pick here last year and did very well and it seems ready to move
out again. I will add 300 shares to the model when it hits my buy point of $157.

3/5
Here is another big mover from this last market move.

They are a few more stocks setting up that I will add to the model, but they may need a
few more days too. To sum things up CIEN and SDLI are now in the model portfolio and I
will be adding AFFX and JNPR when they each hit their respective buy points listed here

4/5
today.

I have to travel tomorrow as something has come up unexpectedly so NO LETTER

TOMORROW. I will have one on Thursday though.

Daniel Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 May 2000

Hello out there stock fans. So far the NASDAQ is having trouble sustaining a rally as
Tuesday’s half point rate hike seems to be the one of the main reason. Seems talk of
another rate hike of possibly another half point has the street in distress and a buyer’s
boycott may have returned.

Today the NASDAQ had another weak close in the last 15 minutes of trading causing the
NASDAQ to close on its low again. In the past this has meant a lower NASDAQ
tomorrow. Tonight I have a chart of the NASDAQ again, and it appears we are going
down to test the new descending trend line that we just broke on Tuesday. To say the
least this is one of the most frustrating market bottoms I can ever recall, light volume and
all.

On a more positive note the Arms Index that is a very good indicator of over bought and
over sold conditions in the market, is now at it’s most over sold reading in 10 years. All we
need now is some positive news on inflation and we could be in for a rally of some sort.

After the bell today Ciena (CIEN) reported much better than expected revenues and
earnings. It also said business going forward looked very strong. The stock is up about $2
in after hours trading. CIEN came down in price early today I hear on news that someone
on CNBC (that all knowing, all seeing TV show) said not such good things about this

1/3
stock. It could have been short sellers trying to force down the stock. No one really knows
for sure, but the action in this stock told me otherwise a few weeks ago. Today’s much
better than expected numbers are all I need to see.

Also after the bell Sycamore Networks (SCMR), which is also in the same fiber optic
group, reported revenues that were up 104% from the prior quarter this past January at
over $59 million along with earnings of .04 that were a penny better than expected. By the
way, the team that runs SCMR is the same team that did wonders with Cascade
Communications some 6 years ago. Cisco Systems (CSCO) eventually bought out that
company.

It’s clear by these earnings and revenue numbers that fiber optic networks are one of the
places to be when market forces return to a more positive note. This would include our
other model stock SDLI. Just when this happens is somewhat of an unknown right now.

On Wednesday Affrimetrix (AFFX) went in to the model portfolio at $157 but since has not
preformed, as I would’ve like to see it. The biotech’s as a group however, have gone into
hibernation since Wednesday. The Biotech group index (BTK) still looks very positive, but
this stock will have to pick up soon or it’s out. Many stocks I select are very market
directionally sensitive so I’m more inclined to give it another few days. The stock still has
higher highs and higher lows like CIEN.

I can remember back in 1994 when the Fed had a series of rate hikes that lasted for
about a year. Near the middle of a corrective phase in March of that year, a stock took off
and ran. That stock was Tellabs (TLAB). TLAB ran throughout 1994 on through 1996. The
stock went from $56 to over $400 during this time and the rates hikes did nothing to this
stock during that time frame as you can see. It maybe we get a few stocks that do the
same this time and they could very well be SDLI, CIEN, JNPR and/or SCMR. Of course
extreme volatility is going to be with us during the whole time.

It’s quite possible that the NASDAQ stays at these low levels for many months to come. A
low trading range if you will. Not a pleasant thought, but very possible to be sure. A halt in
inflationary pressures such as an up tick in unemployment or weakening oil prices could
be all it takes to get this market moving again. It’s clearly looking for a catalyst.

See you on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 May 2000

Hello out there stock fans. The NASDAQ broke support of the descending trend line on
Friday and broke below a small ascending trend. You can see both trend line failures in
tonight’s charts. This break down came on a pick up in volume which as you know is
negative. The NASDAQ is just 60 points or so above its major rising trend line which as of
tonight stands at 3318 and this line is rising daily. A break below the 3318 area and the
next stop over time could be the last break out resistance line which is now support on
the NASDAQ that I showed you 7 or 8 weeks ago at 2860.

The NASDAQ is once again back to near historic lows at 35% off prior highs. It seems
inconceivable that the NASDAQ would break below this area and break down to possibly
the 2860 area. This would represent about a 45% correction off prior highs. In the severe
market crash of 1987 the NASDAQ went no lower than 36% off prior highs. On the other
hand, P/E’s at that time were a mere fraction of what they are today even at this 35%
bear market level.

As long as I’ve been doing charting there has never been a time were the NASDAQ has
gone down for a major correction of 22 to 35%, put in a bottom with a re-test and we’ve
had two prior to Friday, begun the re-building process whereby the index broke through
descending trend lines in fan like formation, then abruptly failed such as we witnessed on
Friday. Unless Friday’s action was somehow related to double options expiration then I
can only surmise that this NASDAQ is set for a tumble below the trend line, which stands
at 3318. This will of course give the NASDAQ it’s worst bear market since the great bear
market of 1974 when the NASDAQ went down 60% in a slow grinding process that lasted
for 2 years.

Here are a few charts with one of the NASDAQ, one of the Russell 2000 (RUT), one of
the AMEX Internet index (IIX) and one of ITWO, a leading software developer. All of these
charts exhibit a wedge formation, which can be classified as a continuation pattern of an
existing trend. Since the trend is down these wedges are merely a resting area before the
continuation of the downward forces resume. Here are the charts

1/6
2/6
I would also like to pass along an observance of mine in that these wedges also resemble
a pennant on a flagpole. In other words the cascading effect down from the MARCH 10th
highs to the area of the wedge could be considered a pole and the wedge the pennant,
only this time inverted.

3/6
I want to remind everyone that with the NASDAQ having multiple bottoms after a major
correction and the NASDAQ breaking north of descending trend lines along with stocks
that are doing the same has always proven to be the most opportunistic time to enter
potential leading stocks. No question about this and it has work every time for decades.
This just happens to be one very sick market and there is nothing I can do to change that
other than to get out of its way and let history write a new chapter.

As we all know that Ciena (CIEN) along with all entire fiber optic group including SDLI,
Corning (GLW), JDSU and Sycamore Networks (SCMR) all broke down hard and were off
during the day considerably. CIEN and SDLI both breaking pivot points and support areas
on volume. AFFX was looking fair and had a strong close into positive territory, but with
the NASDAQ breaking support and close to breaking major support, there is only one
concern of mine and that is preservation of cash. Remember it’s a margin portfolio so any
more trouble ahead would be not be good and this would eat into our purchasing power
for when the market returns to profitability. Therefore CIEN is out at $122, AFFX out at
$151 and SDLI out at $193.

I would also like to point out that most leading big cap tech issues are rolling over and
breaking down. Since these big cap tech issue make up about a 25% weighting of the
NASDAQ, there rolling over and breaking down will help the NASDAQ to break that 3318
area and push the NASDAQ into a bigger bear than it already is. A few of these issues
are AMAT, SUNW, CSCO, JDSU, MSFT, and ORCL. On the big board otherwise known
as the NYSE, the major tech players there are rolling over. Since these are the big boards
market leaders and leaders lead the market, I would assume that the SPX and DJIA
could be in for a tough road ahead. A tough road ahead means these two leading indexes
could be breaking support in the near future. A few of the leaders that are breaking down
are NOK, NT, and leading storage maker EMC.

Here are a few more charts of some prior leading stocks that maybe ready to take
another discount.

4/6
5/6
By the way the longest bear market in terms of time duration was the 1974 bear market
which as I told you above lasted two years. The next two longest were 83’ to 84’ bear in
the NASDAQ which last 55 weeks and the 89’ to 90’ which last 52 weeks. All corrections
and bears totaled up averaged 18 weeks to bottom. The last 5 corrections have lasted no
more than 9 weeks on average. This last average includes the big 35% break back in
1998.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 May 2000

Hello out there stock fans. The NASDAQ market broke through support today of a long
standing trend line and quickly went down to a small support line at 3187. The market
staged a good rally near the end of the day on expanding volume with many leading
stocks closing positive by the end of the day. Another positive is the fact that the
NASDAQ closed back above the 3318 line too.

One could make a case for a good old fashioned double bottom on the NASDAQ
whereby today’s market bottom at 3172 undercut the first bottom of 3227 set back in
April. Combine this with the support of this small tend line in tonight’s charts at 3172 and
a close near the top on heavy volume along with deeply oversold conditions, and one
might start to think about some upside potential. A short term trading rally would be my
guess. We shall see.

This NASDAQ chart "OTC" is a compressed to a weekly format.

This one is a normal daily bar chart

1/3
A few stocks that were highlighted in yesterday’s letter broke below their support lines
only to close back above them today on heavy volume. PMCS is the best example.
Today’s strong move on heavy volume strongly suggest someone is looking out for this
stocks well being.

2/3
One thing I do see as I scroll through my charts today is that there are fewer and fewer
stocks holding up to this market downturn. I see maybe 20 stocks that have a reasonable
chance to advance once the market returns to profitability. Believe it or not this is much
more normal that the 70 to 90 stocks that we have been seeing over the past 9 months.

To sum things up we are far from being back on track but today was encouraging and
follow through on volume on up days could be the key going forward.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 May 2000

Hello out there stock fans. The NASDAQ had its rally today, but not to the up side as
oversold indicators in record oversold territory would indicate. Instead the NASDAQ rolled
over and closed on its low again on reduced volume. The NASDAQ closed below short
term support of 3172 and this could lead it to a quick drop to 3050 within a day or so.
Then soon to the 2860 area and I hope this last area holds or much lower lows over time
could be in store for us.

Many stocks like SDLI and JNPR closed on supportive trendlines today. Factor in the
market’s close on its low and these stocks along with many others should be headed
lower tomorrow in a hurry. In fact SDLI was trading down 4 more points to $166 in after
hours trading. Seems many people jumped ship and/or shorted this stock after the bell
after seeing today’s close on this stock.

Lets take a look at the charts SDLI, JNPR, RFMD and Phone.com (PHCM) On PHCM we
see what could be classified as a continuation of a downtrend ready to break down again.
Tomorrow this trend line will be broken at the $67 area and then this leading maker of
internet software for cell phones could go lower to the $50 area shortly.

We’ll also see JNPR sitting on a long term trend line that should give way tomorrow. SDLI
is ready to break its rising trend line which should help this stock to cheapen in price
considerable. Say another $40.

The last stock RFMD was a big winner and listed here a few times on the way up. It was
even a model portfolio stock last year at one time. However its days seem numbered as
told by this chart. It’s similar to so many other stocks such as PHCM, CREE and others.

1/4
2/4
3/4
Seems those folks that were looking out after PMCS’s well being yesterday had a change
of heart today. That stock gave back all of yesterday’s gain and then some on near record
volume. The stock closed down $22 today and it should see lower lows tomorrow.

This is one very sick market folks and it will be at least another 3 to 5 weeks before
stocks will put in a base at much lower levels. This will coincide with the next Fed
meeting.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 May 2000

Hello out there stock fans. The NASDAQ broke down hard at the open today on high
volume with many leading stocks taking an early morning plunge below support lines.
Heavy volume persisted continuously through-out the day as a massive fight took place
between the Bulls and Bears with stock prices bouncing up and down in a wild fight of the
likes I have not witnessed in a long time.

By the end of the day the Bulls got the upper hoof (They don’t have hands you see) and
the NASDAQ closed near its high for the day on its heaviest volume in 5 weeks. To be
sure no one buying stocks today is afraid of tomorrows’ economic numbers due out.

With a strong close today near the highs of the day and with some of the deepest
oversold readings in a decade, the market is poised for a short term rally of 1 to 3 days.

Is this the bottom were all looking for or just a short term rally to relieve oversold
conditions. One of the things I will be looking for is follow through on volume and price
movement in the next 4 to 10 trading days. Follow through is key from here on out. The
Bulls must defend their turf or the Bears will gain control again.

It maybe that a bottom has been put in however, that doesn’t mean a new sustainable up
trend is in place. Horizontal work will be necessary for weeks to come in leading stocks.
However the rebuilding process maybe what we will be seeing I hope. We saw it once
before and it failed. The Fed.’s may hold the key and they meet in four weeks.

After this short term rally dies down it will be interesting to see if we revert back to low
volume days and if so, how stocks react. This is going to the most important thing to
watch going forward. Follow through and then volume and price action on slow days. Two
key items to focus in on.

By the way big cap stocks such as CSCO and AMAT closed well and look to be some of
the better plays with this potential rally based on their chart patterns. Some of the high
flying tech stocks that have collapsed such as Broadcom (BRCM) and others have tested
support of prior bottoms. If these double bottoms hold, this would be very good for the
group and tech stocks in general.

Here is a chart of the NASDAQ and of BRCM.

1/3
Monday the markets will be closed in observance of Memorial day. I will have no letter on
Sunday, but will be back on Monday.

2/3
Daniel J. Zanger

Chartpattern.com

By the way we got within 200 points of my low side target of 2860 and we did hit my
target of today of 3050. Let’s hope this was it today.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 May 2000

Hello out there stock fans. Light volume on Friday due to the holiday had stocks going
nowhere fast. So far their is no follow through on Wednesday’s heavy volume day. It does
however seem for the time being that the decline may have at least been temporary
halted, we shall see.

Many stocks on the NASDAQ and the OTC index itself show signs of consolidation with
three days of horizontal movement and not much price change. The market could either
stay here in this range or move up or down out of this consolidation. I for one am standing
by in anticipation of resolution this small "pivot" point.

So far there is no meaningful volume yet and bases on almost all stocks are so beaten up
it will take time before any movement could take place other than short term trades of one
to two days.

Right now resistance on the NASDAQ would be the recent broken ascending trend line
that as of today stands at 3368. This is the ascending trend line that acted as support
before it was recently broken. Support lines that are broken now become resistance lines
going forward.

Here is a chart of the NASDAQ and that line.

1/2
Until the Fed.’s meet again in late June and move interest rates up another notch or two
and announce their intentions on rates going forward, I believe this market will go
nowhere fast.

Again as a result of current market action there are no stocks to bring you tonight. We are
in limbo so to speak.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 May 2000

Hello out there stock fans. A powerful move today as the NASDAQ took out resistance
with a huge 254 point move on fair volume. Resistance was the old ascending trend line
that was broken 7 days ago or so. This mark was at 3358. Today’s move brings the
NASDAQ up to another resistance area which is a descending trend line that has been in
the past few charts.

A break of this descending trend line would also be a break of a descending wedge. This
pattern is often very bullish. A break of this major line could be a huge spark for a strong
rally to come and possible a summer rally. We shall see.

There were so many big winners today with of course SDLI leading the way and I suspect
this stock will be the market leader going forward. Also topping the charts today was
RMBS up $25, Check Point software up $26. Here are some other big winners that were
up $10 or more today listed by tick. BRCD, MUSE, VRTS, AETH, SONS, NUFO, RBAK,
SCMR, JDSU, NEWP, GLW, INKT, GLW, RFMD and BRCM. All of these stocks should be
at the top of the list to look at during the day.

Most of the stocks listed above are in the very strong fiber optic group that was recently
slammed when earnings news from Ciena (CIEN) and Sycamore Networks (SCMR) were
released. I does seem to me however that this group is the place to be on this potential
market move coming up.

Here are charts of some potential movers to look at tomorrow.

1/6
I will add CHKP to the model portfolio when this stock hits $191.

2/6
3/6
All of the above stocks have terrific earnings except INTC. Here are a few important
indexes. First is the NASDAQ and then on to the Semiconductor index known as the
(SOX) and last is the Computer index known as the (XCI).

4/6
Here are a few day trading picks for you to look at for tomorrow. GSPN at $86, CTLM at
$32, CTXS at $53, EPNY at $76, ETEK at $194, INKT at $119, PMCS at $155, CREE at
$118, JNPR at $176.

I will have more tomorrow

5/6
Daniel J. Zanger

Chartpattern.com

P.S. I hear our mail server crashed yesterday and no one got yesterday’s mail. Just a
reminder that you can always go into the web site in the members login area to read the
letter after 8pm Pacific Standard Time.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 31 May 2000

Hello out there stock fans. The market started the day with many stocks gapping down in
price at today’s open. Within a few short minutes of positive news on housing starts being
down some 5%, bonds rose in price and leading tech stocks rallied up to resistance lines
of which you’ll see many in tonight’s charts. The NASDAQ also found resistance at the
3500 mark as well.

At the one hour mark, stocks were hit hard by waves of selling that dropped prices
considerably. Prices from that point on were hopping all over the map in a 6 to 10 point
range. By the end of the day about half of the leading stocks closed lower than the prior
day.

The was heavy volume on some stocks today with prices going nowhere as sellers took
advantage of good news to sell in to the strength. Case in point is my new model stock
Check Point Software (CHKP). It was trading on heavy volume but made little progress. I
wasn’t sure if this stock would blast out like SDLI did just the other day or not, so I had to
make a decision just in case it did. The stock acts very well in down markets and this
stocks base is one of the best so it should hold up well going forward.

There are many stocks with descending trend lines like JDSU and INTC. Soon these
stocks too will break through their descending trend lines. A break above these lines are
technical buy points. These include PMCS, AMCC, RFMD, BRCM and BRCD. Lets take a
look at these big movers which are all in some of the strongest groups in the stock
market. These groups are chips for wireless and fiber optics.

1/5
2/5
3/5
As in JDSU which I listed here with a descending trend line a week before it broke out,
some of these may need a day or two to a week before the go. Remember too these
trend lines continue to descend daily so the buy point lowers on a daily basis. The key to
watch for is expansion of volume as the trend line is broken.

Here is a stock on the NYSE that is also in the strong fiber optic group. Corning Inc
(GLW) it’s a bigger cap stock with one of the better bases going in the tech sector. This
horizontal base is about 3 months old. Within days to a week this stock could break out
above the horizontal trend line where it has a technical buy point. This comes in at $200.

4/5
Tomorrow we have the National Association of Purchasing Managers (NAPM) report due
out and on Friday, there will be hourly earnings. So be prepared for choppy markets
tomorrow and Friday.

If something comes up of interest tomorrow, I will put out a small note, otherwise I’ll see
you on Sunday.

Daniel. J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 June 2020

Hello out there stock fans. A massive rally today had the NASDAQ breaking out in style
with an almost unheard of 230 million shares trading in the first half hour of the trading
day.

This is significant because this volume drove the NASDAQ up through strong resistance
lines. This volume as we went through these resistance points is a powerful confirmation
of the break out.

We also had a strong close today which put the NASDAQ above the 28 day moving
average line for the first time in about 10 weeks. The 28 day line is key to a positive
market.,

Here is a chart of the NASDAQ and it says it all.

Like I said the other day SDLI is the market leader with another super day today. This
stock was up 23 points on tremendous volume in another tremendous display of power.
This stock is up over 100 points from its intra day low of just last week when we were
shaken out.

Soon all of those stocks listed in the charts of late will break out. BRCD is acting very
quite and should go soon.

1/2
I will have more on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 4 June 2020

Hello out there stock fans. As I’ve said here many times in the past "Big moves come off
the bottom, not off the top". This of course couldn’t have been more true than this past
week as the NASDAQ leaped 19% on strong volume in just one week. This alone could
be considered a good year for many indexes.

The NASDAQ also stayed above the all powerful 28 day moving average line for its
second day with a huge break away gap and this index closed on its high of the day. This
suggests good follow through is up coming on Monday and that the summer rally is
underway.

We also has broad participation from all of the leading groups. Biotechs, internets,
semiconductors, fiber optics and even some medical stocks. This is a sign of a very good
market.

Of course some of the biggest moves came from stocks that were listed right here over
the past 2 weeks. Stocks like Verisign (VRSN) which is up about $50 in just the past three
days from the buy point I had in the charts. Model stock Check Point Software (CHKP),
up over $40 in just a three days, AMCC up $18, Broadcom (BRCM) up $19, R. F. Micro
Devices (RFMD) up $20, Rambus RMBS up $30 from its buy point and trend line break
out at $191, JDS Uniphase up some $30, and PMC-Sierra up (PMCS) up $22.

Since this is only the beginning of the summer rally I can only imagine the number of
stock picks that will avail themselves to us over the next 4 to 8 weeks. Maybe longer I
hope.

Here are some picks to look at for the active day trader and chart enthusiast. EPNY at
$96, MEDX at $64, SEPR at $112, INKT at $135, INSP at $58, MEDI at $180, NAVI at
$52 and FDRY at $83.

Here is another look at I Two Technologies (ITWO) with a new base and a new buy point.
This stock really needs a few more days to go horizontal for a more complete base, but
as we’ve seen many times before, sometimes they do and some times they don’t.

Earnings on this stock are strong and so is the group. Earnings for the last quarter were
up 800% to .07 and revenues were up 58% to $186 million. There are only about 70
million shares that float so this stock can move quickly when it gets going.

1/2
During the week I will be adding more stocks to the model portfolio. Fridays action was so
huge and quick that many stocks I was considering went too high too fast and will have to
set up again. Not to worry as there are many good stocks with many more opportunities
to come.

I will have more on Monday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 June 2020

Hello out there stock fans. A day of rest for stocks that were leading the charge last week.
Stocks that were up $25 to $50 last week like Check Point Software (CHKP) and SDL Inc.
(SDLI), took time off today with retracments of $8 to $17. As painful as it may be, this is
quite normal and these stocks will be back after a few more days of rest.

In the meantime stocks that were lagging last week had a better time today. Most of these
stocks were in the Biotech group and were the usual suspects. Affymetrix (AFFX),
Genetech (DNA), Human Genome Science (HGSI) and P.E Corp. Celera Genomics
(CRA) and others in this group had moves of $6 to $22. Most of the big movers here had
almost record volume which is very positive going forward.

Also on the move today were some of the IPO’s of late. All of these stocks are in the fiber
optic group. They include ONSI up $14, NUFO up $7 and SONS up $18. You can get
more info on these stocks at your favorite IPO site.

Most of the stocks that made big moves last week are now in an area of resistance. This
would include PMCS, BRCM, AMCC and a few others. With a few more days to a week
of rest or horizontal movement, these stocks will set up some nice pivot points. It will be
at this time that I might possibly add these stocks or some others to the model portfolio.

Last night’s chart selection ITWO, had a fair day today considering that it’s somewhat
extended. The stock did make good progress and looks like it might need a few days of
horizontal work before it gets into gear again. Just my guess, but the stock does look very
strong and volume continues to increase on the right side of the chart as the stock moves
up.

Here are some stocks to look at for the day trader and chart enthusiast. NTAP at $79,
ONDS at $66, and SNWL at $75. SNWL by the way has very good earnings and revenue
growth.

Give the leading stocks that I’ve had posted here over the past few weeks a few more
days of rest and we should have a number of very positive charts whereby some
explosive moves could be seen.

I will see you tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 June 2020

Hello out there stock fans. The market started out in fair shape today with stocks holding
ground or moving ahead very well like the strong Biotech’s.

Biotech’s had a good follow through day on very high volume. Stocks like Millennium
Pharmaceutical (MLNM), Abgenix (ABGX), Affymetrix (AFFX), Myriad Genentics (MYGN)
and about 12 other Biotech’s, moved ahead from $6 to $20 for the second straight day.
Seems the Biotech’s are having a move similar to the move the networking stocks had
last week.

Things were rosy most of the day until the last hour and half of the day when selling
pressure on extended networking stocks set in. Stocks like AMCC caved in quickly giving
up some $15 in just the last half hour of the day. Many other stocks gave up recent big
gains too like RFMD, which dropped some $15 and JNPR giving up $13. Many bigger
cap stocks like Adobe Systems (ADBE) caved in giving up $13 on high volume and
retreating back into its base. All in all, its this kind of ugly day that suggests a tough day is
ahead tomorrow.

This is fine with me as handles are beginning to form on many of these big moving stocks
thereby creating "Cup and handle" formations. Its been a long time since I’ve had an
opportunity to show you this pattern. Most of these stocks with this potential pattern will
need a few more days before they are ready.

Today the NASDAQ closed on the low again so its quite possible that this major index
may go down to retest its 28 day moving average line in the next day or so. Tonight I have
a chart of this index so we can see where we are right now.

1/3
I would also like to note that with today’s frenzied selling this market now reminds me of
last years’ short summer run. Last year we had quick and fast run ups, followed by quick
sell offs. If that’s going to be the case, I can adapt to this very well and maybe you might
consider this too. This would mean waiting for a stock to emerge from an area of
consolidation then sell after a few good days of upside price movement.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. The thought has come to me that if the networking stocks have come too far too fast
and then rolled over, might the Biotech’s do the same. We shall see.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 June 2020

Hello out there stock fans. The NASDAQ wanted no part of going lower today just
because it closed on its low yesterday as we’ve seen many times in the past. This set the
stage for a reversal which we got and by the end of the day the NASDAQ closed up over
82 points.

Today the chip stocks were moving well and some of the stocks in the fiber optic group
stared to recover after yesterdays drubbing. The Biotech’s took the day off but yielded
little ground which suggests to me they’ll be back in a big way after a few more days of
rest.

Our lone model portfolio stock Check Point Software (CHKP) had a big day and reversed
up $15 and now has a beautiful cup and handle formation which I told you yesterday were
starting to form on many stocks. This cup is rather wide so its more saucer like, but still
this stock is poised to move much higher with a new break out point that you’ll see in
tonight’s chart.

There are many stocks ready to move and I expect a big move tomorrow in the market
and the catalyst in the news will probably be the decision in the Micosoft case that came
in after the bell today. However this market move is rooted in the explosive move that we

1/5
had last week on the slowing economic numbers and not with the MSFT case as the
press will make it sound tomorrow.

There are two more stocks that I will add to the model portfolio tomorrow and both we’ve
all had a chance to buy at lower prices including me which I did with charts shown here
last week.

The first one is Rambus Inc. (RMBS) and the other is Verisign (VRSN). Both are look very
good especially VRSN. I hope we can get on this mover tomorrow as it had been lighting
up my trade screen lately and went much further today than I had hoped it would.

I will add VRSN at $190 to $198 area and maybe just have to average it in if this stock
gets away to strongly. The other stock is RMBS a very good performer with a 4 for split
due to be paid in a week or so. Here are the charts on these big winners.

2/5
I will add 200 shares of each of VRSN and RMBS to the model portfolio.

Here are some more stocks with good charts that are ready to move.

3/5
There are so many other stocks ready to go. Here is a good list of stocks ready to move
tomorrow. VERT at $44, VRTS at $136, AETH at $194, INKT at $132, EXDS at $90,
BVSN at $54, SDV at $76, BRCM at $161, DIGX at $64, DIGL at $85, EMLX at $57,
EPNY at $101, ETEK at $232, PDLI at $147.

4/5
Go Lakers and I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 June 2020

Hello out there stock fans. Biotech’s continue to make up large amounts of lost ground
after not moving at all when the NASDAQ vaulted from 3050 to 3700. Now these stocks
are the only ones moving while the first group of stocks that moved when the NASDAQ
took off are resting.

The first group of stocks that are now resting after their large move up are of course the
chip stocks, networking stocks and the fiber optic stocks. These stocks are consolidating
with very nice tight horizontal areas which makes their bases and chart patterns look
better and better with each passing day.

Lets take a look at some now. First up is PMC-Sierra (PMCS) a stock I had here last year
at $32 before it ran up to the $256 area and then broke down with all the others in the big
correction. The stock is rebuilding nicely and it’s ready move soon. Earnings for the last
quarter were up 183% to .17 while revenues were up 104% to $102 million. New buy
point is $196.

JDS Uniphase (JDSU)

is doing just fine after a breakout to the upside of the trend line I had a few weeks ago.
The stock is doing all the right things now and the growth rate on this stock is

1/6
phenomenal. Earnings for the last quarter were up 175% to .11 and revenues were up
430% to $394 million. This company is the leader in fiber optic components. This stock
moves well and a company it proposed to buy E-tek Dynamics (ETEK), has a similar
chart and moves together with JDSU. New technical buy point for JDSU is a break of this
small trend line in this chart at $114.

Silicon Storage Tech. (SSTI)

This company makes and sells flash memory storage devices for numerous applications.
Earnings for the last quarter were up 221% to .34 while revenues were up 240% to over
$62 million. There are only some 28 million shares total on this stock, so it has the
potential to move quickly when buyers come in fast. The stock broke down hard with all
the rest just prior to the market taking off, so this chart needs a few more days to a week
of rest. However when this stock breaks out into technical new highs, it hits my buy zone.
This comes in at $106 to $110.

2/6
San Disk Corp. (SNDK)

Is another company in the strong flash memory device group along with SSTI. Earnings
for this company are strong too as they were up 200% to .21 while revenues were up
109% $109 million. There are only 55 million shares total on big mover of the last market
move, so it has proven that it can run with the big dogs. The stock is under heavy
accumulation as noted by the large and continuos volume spike you’ll see in tonight’s
chart. New buy point is $75.

3/6
As you know on Thursday I added two stocks to the model portfolio. The first is Verisign
(VRSN) which I added at $189 and the other was Rambus (RMBS) which I added at
$219. Both were all over the map on Thursday so I’m sure some of you may have gotten
these stocks at higher levels and some at lower levels.

VRSN was acting very strange all day on Thursday but closed up $5 on a massive flurry
of buying as this stock was added to the NASDAQ 100 at the end of the day. The other
portfolio stock CHKP, is acting and looking very strong, but may need a few more days
before it gets going again. Its chart is super looking and the action on this stock when it
moves up is extremely positive.

Now let’s get to the NASDAQ chart and see what it’s looking like as of Friday. The
NASDAQ like PMCS and JDSU look very similar with their gaps and volume dry up. All
signs of higher highs to come.

4/6
On Wednesday of this week we have the CPI report and a few other numbers due out. It
seems that the market is eagerly anticipating this release. If numbers are favorable, the
market should move up very sharply.

Here are some picks for the active day trader to look at. ENPY at $102 and looking very
good, TERN at $74, CIEN at $145 and rebuild nicely, TIBX at $76, CMRC at $59, ARBA
at $84, BRCM at $169, CRA is ready to move with a nice chart and a leader in the
Biotech group at $110.

By the way folks what you are now seeing and experiencing in the stock market is called
"stair step" action. This is where the charts are starting to look like a stair step. First their
is sharp vertical movement then the resting or step area. This will repeat itself through-out
this summer rally.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 June 2020

Hello out there stock fans. Leading Biotech stocks gapped down at the open today and
retreated all day on heavy volume giving up easy gains made last Friday. Many internet
and chip stocks were also headed lower on mixed volume.

The only stocks that were strong today were the fiber optic stocks. Stocks like SDLI
leaping $22 at one time today and just briefly into new high ground. SONS moving ahead
$20 on expanding volume and last night’s chart selection JDSU, moved ahead smartly for
most of the day but gave back some gains like many other stocks in the last half hour.
JDSU still closed looking positive.

Seems like the NASDAQ may have cold feet going into the CPI numbers due out this
Wednesday. The NASDAQ may also fill the gap it created when it exploded two weeks
ago on slowing economic numbers. I personally don’t like see gaps filled on stocks or
indexes as I see this as weakness. However many people see it the other way.

For those of you interested in this subject, in one of tonight’s chart of the NASDAQ you
can see two gaps that were not filled on its major run during last winter. The first one is at
the onset of the run as the NASDAQ lifted off from its base in the last week of October.
The other one is in the first week of December.

These gaps were not filled and the market continued straight up for months. I would
prefer to see that on this NASDAQ chart as well, but we’ll just have to wait and see.
Maybe the CPI report is the key.

1/3
Here is the chart with the gaps.

2/3
As I’ve said before this NASDAQ move, summer rally or relief rally is very similar to last
summers brief rally. Stocks are running up quickly then rolling over almost as fast. I was
very disturbed to see VRSN give up 23 points today on fairly sizable volume of over 5
million shares. Hard to say what this leading security stock will do. I will set stops at $169.
The stock could find support here on its 100 day moving average line which tonight
stands at $171.

CHKP gave up some on very light volume today and still looks good while RMBS took a
hit as did the chip group. With its 4 for 1 split due to trade on the 15 of this month it could
be that people are selling before the split just in case. I will set my stops on RMBS at
$209 just below the prior descending trend line that it broke.

Like most stocks that I put into the model portfolio they are all very good companies with
excellent volume accumulation characteristics. Most come back and I’m sure if these two
get checked out, I feel strongly that they will come back.

Daniel Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 June 2020

Hello out there stock fans. A weak follow through today during the first three hours of the
day to yesterday’s close on the low. In the last two hours of trading today a strong rally
ensued that brought the NASDAQ back from being down 50 points to being up 83 points
by the close of trading.

Today’s action was similar to the action we saw the last time the NASDAQ closed on the
low of the day. It’s these types of reversal days that lead to good follow through days to
the upside. The market is telling us that tomorrows CPI report should be favorable and if
that’s the case, I expect a big rally in the market once again.

Today we had two wins today and one loss in our model stocks. The loss is of course to
VRSN as it hit my stop of $169. Word on the news wires is a concern about the
accounting of some revenues on VRSN’s recent purchase of Network Solution (NSOL).
The mere mention of accounting concerns has always sent shivers though investors and
this stock acted no differently as investor took a shoot first and ask questions later
attitude. Another rumor to compound this two day selling spree is that George Soros was
selling shares from his hedge fund. Just lovely isn’t it folks.

The wins are RMBS up a whopping $29 after coming within a point to this stocks stop at
$209. RMBS rallied hard during the last two hours of the day on almost record volume to
close the day on its high of the day at $248. The last win is of course is CHKP which held
its ground today while others were down. As soon as the market went into rally mode, this
stock jumped in with an $18 gain on expanding volume to close on its high of the day.

Today was a day for the fiber optic stocks once again and while the Biotech’s rested.
Maybe the same scenario will play out once again whereby the fiber optic stocks move for
a few days, become extended, then the biotech’s wake up to move again.

At any rate the CPI numbers are due out before the bell tomorrow. If things go as the
market says they may, stocks could have a sizable gap on them at the open tomorrow.

If this is the case tomorrow, here’s how I handle the gaps most of the time. Say a stock is
up $8 at the open. More likely than not the stock will not go anywhere for at least 20
minutes so there’s no reason to buy at this time. The stock more likely that not will drift
down maybe $4 or 50% of the gap for the next ten minutes or so. Then as soon as I see
the first up ticks in price I will then start buying.

I play it a little different near the end of a market move and a little different at the
beginning of a market move. In time you‘ll get the hang of it.

1/2
Charts turned positive today. If the market is good tomorrow, these stocks could move
well.

Here are some picks to look at for the active chartist with my technical buy points. ADI at
$96, BVSN at $55, CHKP at $236, CIEN at $147, CMRC at $59, CMTN at $97, CREE at
$156, DIGL at $96, EPNY at $101, ETEK at $258, JNPR at $240, MU at $84, NEON at
$34, NTAP at $87, NAUN at $65, NUFO at $88, PMCS at $194, I show you this chart of
PMCS the other day and I’ve lowered the buy point to $194. RMBS at $250, BRCM at
$155.

Hope for good CPI numbers tomorrow.

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 June 2020

Hello out there stock fans. The CPI report today was slightly better than expected but
stocks were not impressed and sold off on the news. The old buy the rumor sell the news
routine. However most tech stocks didn’t travel far from their new market move highs and
held ground until the last hour of the trading day when most tech stocks caved in an extra
$8 or so. Most of the chart patterns are still in tact though which is good news.

The NASDAQ is having a difficult time trying to find out which way it wants to go as they
is no follow through in either direction. For now the NASDAQ is finding strong resistance
at 3894 as you will see in tonight’s chart. Until the NASDAQ can get above this resistance
point, we will probably be stuck in a tight trading range.

This Friday is triple witching of options expirations. Much of the volatility we see are
seeing today through Friday maybe related to the adjustments of these options.

Today we saw Rambus (RMBS) moving wildly on record volume as the stock trades
tomorrow on its 4 for 1 stock split. I suspect this sell off was in sympathy with other tech
stocks as well as some people selling stock, as the thought of having 4 times the amount
of such a wild stock is more than they can handle.

1/2
RMBS trades tomorrow at a 4 for 1 split, so the price will be reduced to the high 50’s
range. Therefore set stops on this stock are at $49. CHKP came down today on reduced
volume and the chart still looks very good.

As we can all see the Biotech’s seem to hold up best with reduced volatility. These
include all the favorites in the Gene area such as AFFX, HGSI, MLNM, DNA and a few
others like PDLI. With a little more rest, these stocks may be ready to move again with
very nice chart patterns.

Today we saw stocks that hit buy points go nowhere or lowered in price after going up
slightly. This is telling us that the market is unwilling to put stocks into new high territory.
This will always prompt selling by momentum players that realize that there is no need to
hold a stock that isn’t going up. I suspect most of these stocks we be back in just a few
more days.

It maybe best to wait on listing such stocks until the NASDAQ either goes lower or breaks
out above 3894. If I find some interesting picks tomorrow I will have them here, otherwise
I’ll see you on Sunday.

By the way there will be no letter on Sunday the 25th of June, the day after the seminar I
will be holding in L.A.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 June 2020

Hello out there stock fans. The NASDAQ remains in a tight horizontal trading range, as
do many leading stocks. This tight horizontal range is merely a resting bench that usually
leads to highs stock prices shortly. For now almost all attempts by most stocks to move a
into new high ground other that SDLI, GLW our model stock RMBS have been met by
selling pressure thereby keeping the stock price depressed.

We all know model portfolio stock Rambus (RMBS), had nothing less than a spectacular
day on Friday just one day after a 4 for 1 stock split. The stock had news of a licensing
deal with Toshiba on some of its technology. This sent the stock up some $26 on massive
volume of just over 62 million shares. This $26 price change just after a 4 for 1 stock split
is equal to jump of $108 in just one day. Not since Qualcom (QCOM) ran up some $158 in
one day has the model portfolio had such a big mover.

There is very little economic news due out this week and this may help the market at the
stay at these levels and who knows maybe we go higher this week and break out above
resistance, which still stands at 3894. The following week however the Fed.s met to
decide whether to raise interests rates one more time or to possible hold off for now.

My sense with this horizontal chart of the NASDAQ is that the market is just building a
nice solid chart in which to make another big run higher. A break of the 3895 upper trend
line is all it will take to get this market on the move again. The market is just resting
waiting for the FMOC meeting and then I can assure you things will be off and running.

Today I have some nice charts of some of the markets leading stocks.

Sycamore Networks (SCMR)

this stock is one of the leaders in the optical networking area and revenue growth is huge.
Revenues for the last quarter were over $58 million vs. nothing for this time last year.
Earnings for this quarter were .5 cents. There are only 54 million shares on the float. The
stock is building a nice tight base and soon it will be time to go higher.

1/3
Medimunne Inc (MEDI)

This stock is a leader in the Biotech group. The stock is just now coming out of a little cup
and handle type formation. Revenues for the last quarter were up 46% to $198 million
and earnings were up 110% to .27. There are just over 200 million shares total on this mid
cap stock, but it still moves well. Today’s price of $70 to $73 is my buy zone.

2/3
There are some other stocks that look very good and I will get to them during the week.
Here are some buy points and with some nice looking charts on strong stocks to look at.
PDLI at $166, MACR at $104, CPTH at $52, FLSH at $80, RBAK at $123, CHKP at $236,
CIEN at $150, EXAR at $85, INCY at $90, MLNM at $125.

I will have one or two more model stocks ready to go this week and could be as soon as
tomorrow. Check Point Software (CHKP) the other model stock looks very good on the
charts and is just resting. A break into news highs at $236 is my next buy point.

I’ll have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 June 2020

Hello out there stock fans. The NASDAQ finally broke through resistance of that trend line
I showed you last week at 3895 today. As soon as this point was broken stocks en masse
took off and were on the run in a big way with Biotech’s leading the way. The Biotech
index (BTK) was up 9% today and the semiconductor index (SOX) was up 6%.

Biotech’s had some of the biggest movers with stocks like Incyte Genomics (INCY) up
$28, Vertex Pharmaceuticals (VRTX) up $19, Affymetrix (AFFX) up $18 and a host of
other biotech’s up anywhere from $5 to $14.

We also had big moves from some of the networking stocks like last nights stocks
selection Sycamore Networks (SCMR), which broke out and ran some $15 on very high
volume. Ciena (CIEN) up $10 and Juniper Networks up $12 and folks, the list of big
movers goes on a mile. All in all it was a very good day to say the least.

Model stock Rambus (RMBS) had another good day today on over 45 million shares
while Check Point Software (CHKP) turned the corner and hopped up $13 on fair volume.
CHKP seems ready to move out of another base formation so those of you that missed it
the first time at $191 have another shot

Here are some charts of some stocks with a good chance to move higher in a positive
market.

P M C Sierra (PMCS)

A big player in the hot fiber optic group with earnings to go with it. Earnings for the last
quarter were up 183% to .17 while revenues were up 104% to $102 million. The stocks
base looks just like the NASDAQ did before today. Buy point moved up 3 points after the
last break out failed. Now it stands at $198.

1/4
Here are two that we all know well.

Ciena Inc. (CIEN)

A new comer in the optic group with new products and very good earnings.

2/4
Check Point Software (CHKP)

Last night there were some strong movers that were listed in the day trader’s section like
INCY up $28, RBAK up $17 and MLNM up $8. Tonight the list is even bigger as when the
market is on the move, it’s just impossible to show all the charts. This is why you need a
good chart program like AIQ. Go to AIQ.com . So here are some good looking charts with
some technical buy points. BRCM at $149, JNPR at $126, MU at $85, ABGX at $125,
VRSN at $180, SONS at $116, NTAP at $88, EPNY at $100, MEDX at $81 and BRCD at
the $160 area up to $165.

Tomorrow I will add these stocks to the model portfolio. C. E. Corp. Celera Genomics
(CRA) 300 shares at no more than $125. I will probably average it in between $120 and
$125. I will also add 200 shares of PMCS at $198.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 June 2020

Hello out there stock fans. The NASDAQ went nowhere fast today with many stocks
taking the day off to consolidate their gains of yesterday. Of course the DJIA was down
some 122 points today, which I’m sure, helps to suppress big rallies on the NASDAQ.

We did however have some stellar moves from a number of selected stocks with many
coming from the newly awaking Internet group. Big winners from last year Ariba (ARBA),
Inktomi (INKT) and Broadvision (BVSN) were on the move again, with this being the
second day of movement for ARBA and INKT. Both of these last two were on heavy
volume. After some consolidation on these, I would consider them for the model portfolio
again.

Today we added two stocks to the model portfolio with CRA having the best day of the
two new stocks. CRA opened at $123 and stayed there for about 10 minutes then
squirted quickly to the $132 area before pulling back to $127 mid day. In the last two
hours of the day this stock went on to close near its high of the day on near record
volume. This heavy volume suggests much higher prices to come over the next 3 to 6
weeks on this Biotech leader. I will put this stock into the model at $125.

The other stock is PMCS, which had a fair day on expanding volume, but not near record
volume as I like to see it. The stock was up as high as $205 or $11 before pulling back to
close the day at $199 and still above its trend line. I did note however that many other
stocks in this group were weak today, so this stock may get going when the group gets
going again. This stock goes into the model portfolio at $198.

Check Point Software (CHKP) tried to run a little today, but the volume on this stock as it
started to move up was only 150,000 shares. Not nearly enough to consider this a
meaningful move. The stock soon rolled over and dropped $15 leaving the base intact.

It’s quite possible that the NASDAQ will be on hold until the FOMC meeting next Tuesday.
I think after the Fed.’s render their vote on interest rates, this market may get going again.
I would sure love to see 200-point days again.

Most all stock have moved over the past two days leaving me with no stocks with buy
points. In a day or two there’ll be some more set ups and I’ll have them here for you,
hopefully tomorrow.

Remember this Sunday there will be no letter.

Daniel J. Zanger

Chartpattern.com

1/2
P.S. For any of you that have AIQ software, which is what I use here, this month in their
Opening Bell monthly newsletter there's an interview with me on how I go about selecting
stocks.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 June 2020

Hello out there stock fans. The market started the day with many stocks showing 2 to 4
point gaps down at the open today, which at the beginning of a market move is usually a
buying opportunity. That’s exactly what happened as within 20 minutes stocks started to
rise and by midday many stocks were up $4 to $21.

The NASDAQ tacked on another 50 points today as it just keeps marching higher
basically saying that this market is going much higher regardless of what the Fed.’s are
going to do come this next Tuesday. I can’t wait to see what the market does when the
Fed’s announce their decision on Tuesday. It does come to my mind with the market
moving in advance that we could see a buy the rumor and sell the news scenario. This is
due to the fact that many stocks will be very extended by this Tuesday. I’m prepared
either way, as I’ll probably reduce some holding just before Tuesday just in case.

All leading groups had another fair day today with the Biotech’s and Networking groups
posting good gains on good volume. The Biotech’s are having better volume
accumulation days as volume on up days exceeds daily average volume on a regular
basis. Many stocks and groups are lagging in this important area, which is why Biotech’s
are out performing. The Networking group is not far behind however.

Today all model stocks finished well. PMCS is moving slowly for now but still up and
making progress. Check Point Software (CHKP) is getting closer to moving out of the
base as you will now see rising bottoms on this stock as it start to tighten up a little in the
handle of the base. CRA had news about it running ahead of itself and the stock was
hopping up and down during the day but finished ok. Rambus(RMBS) is setting up for
another run if you ask me. I think the stock is setting up a flag formation, which is one of
the most powerful formations to buy from.

1/3
Here are some stocks setting up for a potential move for the move active day trader to
look at. ANEN at $112, RBAK at $141, SCON at $38, ABGX at $139, ELNT at $66, CTLM
at $66.

2/3
For those of you coming to the seminar in L.A. this Saturday please remember to bring
you tape recorder, however video cameras are not permitted. You will see signs in the
hotel directing you to the auditorium. Continental breakfast will be served from 9:am to
9:45 and the show gets underway at 10:00 sharp. I look forward to meeting each and
every one of you and believe me you will never see charts the same way again!

By the way I’m looking at Miami Beach to host the next seminar sometime in early
October. The fee is $795 and if you are interested just send us an e-mail at
[email protected].

Remember there is no Sunday letter this weekend due to the show. I’ll be back on
Monday. Tuesday I must travel so no letter, but I will make it up on Thursday.

See you at the show!

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 June 2020

Hello out there stock fans. A tough day today after many stocks and indexes hit their
upper trading bands over the past few days. I mentioned in last nights letter taking some
chips off the table going into the Fed meeting and it seems many took that advice with
some stocks cracking down with losses up to $18.

After the bell today model portfolio stock Rambus (RMBS), soared on more news and the
stock was up about $45 in after hours trading. The high was around $144 with a final
close at $137. Meanwhile PMCS is coming down on reduced volume back into its base
as did Check Point Software (CHKP) and CRA.

Stops on PMCS will be set at $187 and CRA at $114.

Micron had very strong earnings after the bell today and hopefully this will put some life
into the tech’s tomorrow.

See you on Monday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 June 2020

Hello out there stock fans. The NASDAQ broke down below support on Thursday of last
week on a slight pick up of volume and we had some follow through on Friday with
another 100-point plus day to the down side.

This was very discouraging to see and I think the main reason was that when the
NASDAQ was at 4072 this was a technical 50% retracemnet of the move that the
NASDAQ had when it slid from 5132 to 3050. This is how that works. Subtract the May
low of 3050 from the March high of 5132 and this leaves you with 2082. Now divide this
number by 2, which gives you 1042, or 50%. Now add 1042 to the May low of 3050 and
you get 4092 or a 50% retracemnet of the prior downside move. Wednesday of last week
the NASDAQ hit a high of 4073, which is close enough, and on Thursday the NASDAQ
was headed lower as technical traders threw in the towel.

The NASDAQ however wants no part of breaking down as once again it has found
support in the prior base. Today the NASDAQ was looking good most of the day although
the Biotech’s were having a very rough go early on with many of the Genomic stocks
cascading down 20 points intraday. By the end of the day most had recouped their losses
and some had posted gains. CRA hung tough most of the day until AFFX was down $20
and then CRA folded to break down and hit the stop set last week at $114. This is the
leading Genomic stock and when the Biotech’s get going again, this stock should move
well.

Another model stock PMCS also got checked out of the model portfolio last week at l88.
This stock hangs tough and it too may be back when we get closer to earnings. RMBS is
hanging tough and should benefit from a strong week this week. CHKP is set to move up
and is resting well and still looking good.

Tomorrow the Fed.’s meet to decide on interest rates and we also have end of the quarter
portfolio window dressing at the end of this week by the institutions. With a decision due
out either tomorrow or Wednesday on rates and portfolio dressing this week, I think this
week could prove to be very positive for stocks. With that in mind here are some picks for
the active trader to look at with some technical buy points.

BKHM at $62, BRCM at $180, CIEN at $160, SDLI at $294, EMKR at $112, GSPN at
$103, HGSI at $152, MUSE at $145, SCMR at $120, SCON at $36, TSTN at $147 and
VRSN as it went back above the 28 day on a nice expansion of volume today at $164.

Here is a nice chart of a stock with strong revenues and earnings. Turnstone Systems
(TSTM). Earnings for the last quarter were up 135% to .14 while revenues were up 999%
to over 23 million. There are only 29 million shares total on this potential mover.

1/3
I want to thank the 90 or more folks that were at the seminar on chart reading this
weekend in L.A. The show went 2 hours over the scheduled time as there was much to
cover and I wanted to make sure that everyone that traveled from all parts of the country
got all that they could. Many wrote me today to say how much they made today off some
simple tools they now have and here is a nice note that was echoed by many.

Dan,

Just wanted to say thanks for the great seminar Saturday. I literally learned more that day
than I have ever learned in one day. (Including 4 years of college.) It's not easy to keep a
group's attention for 3 hours at a time but you did it. I had no real knowledge of how to
read charts before and now I feel I have at least a basic grasp of what to look for. I never
realized how much I was just guessing when I was trading. I think the main thing I learned
was when not to buy a stock and how to spot signs of trouble. Thanks again. You put on a
tremendous program. Jack C.

I highly suggest that everyone get in on the next seminar that will be held in Miami on
October 15. The fee is cheap and the knowledge learned is huge.

Folks I have to travel tomorrow so NO LETTER TOMORROW. I will be back on

Wednesday. By the way I feel a vacation coming up soon.

Daniel J. Zanger

Chartpattern.com

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 June 2020

Hello out there stock fans. Today the Fed.’s decided to hold short term interests at 6.5%.
This set off a small wave of selling at the onset of the news for a few minutes until buyers
got the upper hand and drove price up another 2 to 3 points. At the end of the day a spat
of selling near the close sent price back down to levels that were in place prior to the
news.

Many of the strongest stocks in the market rallied well with 6 to 18 point gains like MLNM,
BRCD, JNPR, VRSN, PDLI and GLW which I’m sure are the recipient of portfolio window
dressing for the end of the quarter. After all portfolio managers are going to stuff their
portfolios with the best performing stocks of the past few months and not the laggards. At
the end of each quarter its always best to look for these leading strong stocks for this
reason.

By the way last year at this time we had a very good run the last two days of June for
portfolio dressing. Then came July 1st and stocks moved down rather fast. My guess to
avoid this, one might consider selling stocks that are very extended during the last 15
minutes of the day on Friday. If this theme is repeated again, you will avoid losing 4 to 18
points. Just a thought to keep in mind folks.

I also see chip stocks are getting clobbered with many stocks like SSTI dropping some 25
points in just a few days. This quick sell off on these chip stocks is one of the main reason
why I rarely list chip stocks even though on occasion I do. Many other chip stocks like
AMAT are showing big rounded crowns in place which is typically a sign of distribution.

1/5
The cycle of movement on chip stocks typical lasts only 18 months and we are very close
to that time frame right now. Just one whiff of a slowdown in the chip industry can send
these stocks crashing down faster than any other sector I know of. That is probably what
these charts are telling us right now. Time will tell.

Here are some picks for the active day trader for tomorrow. INFY at $186, EMIS at $51,
INCY at $97, SDLI at $294, SNWL at $90, SQSW at $15.50, SSOL at $71, TERN at $75
and WEBM at $156.

Here are a few charts of some stocks with good set ups or chart patterns that are ready to
go. One is a former portfolio stock that’s on the move again. Don’t you just hate that.

2/5
3/5
Portfolio stock RMBS is coming down and filled its last gap today. I assume this means
that this stock is getting tired. Still after so many days of coming down I think it may be
time to turn up and the stock is coming down on reduced volume which is typically
positive. None the less I still want to lock in some gains. I will sell this stock after its next
turn up.

4/5
CHKP is the other model stock and its chart still looks great as it creates a channel
formation. This stocks should be ready to move out maybe next week.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 June 2020

Hello out there stock fans. A very choppy and volatile market with only a few selected
strong yet under known stocks, i.e. Redback Networks benefiting from this end of quarter
window dressing. It feels more like window undressing to me as many stocks are getting
hammered like Sycamore Networks (SCMR) down over $25 and Millenium
Pharmaceutical (MLNM) down $30 in just a few days. Is it possible that institutions are
selling stocks in the face of strength. The market is at the very least separating new
leaders from stocks that are perceived to be slowing in growth.

The strong stocks like Juniper Networks (JNPR) and Redback Networks (RBAK) are
either at or very near their upper trading bands and both are near new highs after
powerful and extended runs vaulting both of these stocks up nearly 100% in just three
weeks.

At these levels both maybe suspect to retreating at any moment.

1/4
To tell the truth I can hardly remember the last time I’ve seen such a wildly choppy
market. We have a few stocks running up while others are in full retreat. Your basic 50/50
market which means that half your stocks are going up while the other half are going
down.

No one that I know of is making any money to speak of and most are down some or
barely hanging on. For the last two years the market has either been full throttle up or
breaking hard into a correction. Both of these are easy to spot and easy to play. This
market on the other hand is quite the opposite and is very dangerous to the momentum
player that buys the strength as we can all attest to.

Let’s take a look at the NASDAQ and some other charts tonight to get a picture of the
market and the SOX index. I also have a good looking Fiber Optic stock with a very tight
chart pattern that looks similar Check Point Software (CHKP).

2/4
3/4
Model stock RMBS tried to turn up today and stalled. I think it might try again tomorrow.
CHKP is still hanging on right now in a tight channel formation.

I will see you Sunday.

Daniel J. Zanger

Chartpattern.com

P.S. Broadcom (BRCM) is going into the S&P 500 at the end of the day tomorrow. The
stock is rallying up sharply as a result. This strength should end tomorrow at the end of
the day. Take this for what its worth.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 July 2000

Hello out there stock fans. Powerful moves in selected stocks on Friday as re-balancing
of the Russell 1000 and 2000 along a mighty surge in price and volume on Broadcom
(BRCM) due to it being add to the S&P 500, drove the NASDAQ up over 80 points on
Friday with a hefty increase in volume for the NASDAQ.

The NASDAQ continues its horizontal basing pattern with no filling of the gap that was
created just 4 weeks ago. This horizontal pattern general leads to higher prices and it’s
probably just a matter of time before the market lifts off. I hear many institutions are
waiting for the jobs report due out this Friday. If the unemployment rate clicks up a tenth
of a point or more, the feeling is that there is no way Greenspan and Co. can raise rates
any further and in fact would probably have to go to a neutral stance going forward.

The removal of rate hikes from the market for many months to come, combined with a
good earnings season coming up could produce a very good month or two going forward
for the NASDAQ. I believe this is why the NASDAQ refuses to fill the gap even though its
big brother the DIJA, is looking and acting very weak.

1/5
The are many stocks to look at today and hopefully these stocks will produce many
winners like we had last week like DIGL up $10 in one day, TSTN up some $40 in three
days before pulling back half its gains. ISSX is looking very good as it added $5 to its
price as it came out of its base on Friday on very high volume.

Here is one of the leading Fiber Optic stocks today and worthy to being added once again
to the model portfolio. I will add 300 shares at $123 to $125.

I will add 200 shares of this next stock to the model portfolio at $207 to $210.

2/5
With demand great for lower priced stocks this stock will also be added to the model
portfolio at $49 to $52 area.

Foundry Networks listed here has incredible growth of over 200% per year and acts
better now than at any time since going public just last year.

3/5
Here are some stocks for the active day trader and chart reading fans with my technical
buy points. MYGN at $152, NICE at $80, CTLM at $71, FDRY at $118, ISLD at $50,
MRVL at $60, BKHM at $62, and MEDX at $86.

4/5
Model stock RMBS is acting tired and I will sell it if rallies up to $110. CHKP is still basing
and it needs to move out within a ten days or its out. Remember ISLD, AETH and JDSU
are my new model stock picks.

Tomorrow is a shortened day due the July 4th holiday. Tuesday there is no trading.
Therefore I will have no letter on Monday or Tuesday but I will return on Wednesday and
then again on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 July 2000

Hello out there stock fans. Earnings warnings from multiple software companies
combined with a downgrade of the Semiconductor sector drove the market lower on
lighter than normal volume.

The SOX index dropped some 10% as semiconductor stocks broke down hard as fear
that the earnings cycle has topped out. This doesn’t mean that earnings this quarter are
going to be poor, in fact they should be quite strong. It’s earnings in the next 2 to 4
quarters that will show deceleration the analyst is saying.

The downgrade of this leading sector and fear of slowing in the economy spilled over into
the fiber optic sector today as most leading stocks in the fiber optic sector moved lower in
sympathy with the chip sector. Of course selected stocks in this sector are very extended
and profit taking suited many folks just fine. Stocks like GLW, SDLI and our new model
stock which is not very extended JDSU, were down sharply by the end of the day.

Two sectors did do well today and those two were the Biotech’s and the Internets. The
last time we had a good break in the semiconductors was back in November of 1997.
Much of that break was due to the collapse in Asia and their subsequent slowdown.

In one of my newsletters back in December of 1997, I suggested our next leading sector
would potentially be the internets. That did happen and that move lasted some 2 years
before the dot com craze broke down this past March. With interest rates coming down as
you can see in the long bond now yielding around 5.89% and the ten year note now
under 6%, we may see a return to some of the internets and Biotech’s. This breakdown in
chips, oil and softening of rates is the same scenario as it was back in December 1997.

Both groups, internets and Biotech’s were unaffected by today’s activity and that is
positive. In the internet group I like TIBX and ARBA, but they are both extended now. In
the Biotech’s which were on the move today, I like AFFX, MLNM, HGSI, INCY, ABGX and
PDLI. These Biotech’s are now coming out of small areas of consolidation.

Let’s take a look a chart of the oil index and see how its looking.

1/5
Here’s a chart of the SOX index and a chart of that stock with the rounded crown (AMAT)
I showed you last week. Today you can see the result of that crown.

2/5
In our model stock section, CHKP is looking fair while I’m afraid RMBS came down with
the semiconductor group after coming to within 1 point of my $110 target on Monday. This
stock is very extended and since this group is not acting right, I will sell this stock
tomorrow at $100 or as close to it as possible. If it re-builds a whole new base, I can
always buy it back again.

ISLD was bought on Monday (400 shares) at $50 and the stock zoomed up to $57 on
very strong volume. Today however the stock came down with all the rest of the tech
stocks on high volume. Stops on this stock will be set at $47. JDSU has much of the
same scenario as ISLD with it being bought at $123 and racing up to $128 on good
volume for a shortened holiday. JDSU retreated today with the others in this group. The
stock should not break and close below its 28 day MA line. Stops on this one are at $114.
AETH never hit the buy , so it has not been bought as of yet.

Again the NASDAQ continues to trade in a very narrow area as you will see tonight. We
could go either way soon. The 28 day moving average line is at 3841 and you’ll also see
a slight rising trend line that this index is setting on. A break below this line and things
could potentially heat up to the downside. By the way the last two summers rallies were of
7 weeks and 4 weeks before things went down. This rally or move is 4 weeks old going
on five. The last time we had a sustained summer rally was 1997.

Here is a chart if the NASDAQ

3/5
This Friday morning we have an important jobs report due out and we could rally lower
until Friday morning. If the number is good on Friday we could get a good rally. Look for
short covering tomorrow at the end of the day as a possible leading indicator for Friday’s
number and the sentiment about a Friday rally. That is of course if we don’t rally
tomorrow.

No picks today due to the charts not looking good. If something pops tomorrow, I will have
charts for you tomorrow, otherwise I’ll see you on Sunday.

Thanks a lot.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 July 2000

Hello out there stock fans. A tame jobs report on Friday and the NASDAQ and the DJIA
responded favorably. The NASDAQ is trying to once again break out of a small
consolidation area with resistance at the 4120 area while the DJIA is ready to break out of
a descending wedge formation.

Let see charts of both indexes to get the big picture. First the NASDAQ then the DJIA.

1/6
As we all know JDSU got hammered on Thursday with a drop on near record volume with
seemingly no news to account for such action. I did find out through various market
makers that a venture capital firm and/or an oriental company has very large amounts of
stock to sell. I hear the range is anywhere from 25 million shares to over 100 million
shares. The shares have been shopped around to other large funds here, but everyone
passed on the deal. Therefore the sellers had no choice but to sell them on the open
market.

This stock may remain under pressure until all of these shares are sold. We did this
model stock at $114. ISLD got clocked too on your basic sell the news routine. Seems
this is a very popular thing these days. I wonder what the institution have in store for us
when news of good earnings hits the wire. Sell the news again? I for one will be watching
very closely all the earnings and how stocks respond to them as this could be an early
warning sign for our favorite stocks posting "better than expected" numbers and being
sold off.

Most of the networking stocks remain at or near new highs with BRCM, JNPR, RBAK,
and BRCD doing just fine. Today Foundry Networks (FDRY), which I had a chart of last
week, was on the move breaking out of a four week consolidation on near record volume.
I for one got in on this one today. The stock was also one of the better finishers of the day
closing almost at the highs of the day. Here is a chart of it.

2/6
We also saw Check Point Software (CHKP) move up well on good volume and the chart
of this stock with its horizontal formation looks very good. Here is a chart of this potential
big mover. By the way there is a 2 for 1 stock split due around the same time earnings
come out. Could be a winner around this time plus this stock is not extended like the
BRCM, BRCD, RBAK and JNPR.

3/6
Another leading networking stock that had a very powerful move today was Sycamore
Networks (SCMR). The company announced a very big contract today and the street
went nuts for this stock for the first time ever. Today the stock gapped up $8 at the open
and proceeded to finish the day up $16 on near record volume of over 9 million shares.
This networking group is red hot and this stock along with FDRY should continue to
perform well as both are not extended. Here is a chart of this stock and you can see the
powerful break away gap.

4/6
The Biotech’s continue to look good with the Biotech index (BTK) breaking out of a small
area of consolidation and almost ready to hit a new all time new high. This means that
most of the leading Biotech’s are still in very positive up trends like MLNM, INCY, HGSI,
PDLI, ABGX and ENZN to name a few.

I also checked out RMBS out of the model portfolio at $101 where it treaded most of the
morning on Thursday. On Monday I will add 400 shares of FDRY to the model portfolio at
the $120 area as this stock is not too extended.

I will have more stocks and charts tomorrow as many stocks that have been sold off lately
seem to be seeing new interest and their charts are rebuilding.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 July 2000

Hello out there stock fans. We now know why there was such heavy volume on JDSU
over the past few days. Seems there were many people in the know about SDLI merging
with JDSU and it wasn’t John Q. Public.

I for one would call this insider knowledge and trading at its best. This special treatment is
reserved for those who grease the palms of the brokerage houses and other special
interests especially well. I for one don’t have enough cash to do this, otherwise I would
have been one of those "special" folks that got out early. I really thought this kind of stuff
was illegal but I guess I’m wrong.

Well maybe its ok to sell your shares to stop any further losses, after all your not
"profiting", your just locking in your profits. Is there a difference.

SDLI will receive 3.8 shares of JDSU for every share of SDLI. At today’s close at $101 for
JDSU this would value SDLI at $284. SDLI closed the day at $320. When JDSU bought
E-Teck Dynamics back in early January the stock price of E-Teck never came close to its
buy out price until 2 months after the deal was announced. This was due to fear about the
deal being declined by the Federal government due to anti-trust regulations. The same
fear is present in this deal and I would suspect that SDLI will trade below the $284 area
for quite some time.

The entire fiber optic group was up today as a result of this merger. Most of the better
movers were in the IPO’s of stocks that are in this group. They include EXFO, STOR,
AVNX and NUFO.

In other trading today the Biotech’s moved once again with the same crowd at it again.
These include PDLI, HGSI, MLNM, and a big move today from AFFX as it was up $23 on
good volume. AFFX is also ready to make new highs of the right side of this new move
formation. Let’s take a look at this leading Biotech stock.

1/3
Here are some picks of other stocks to look at with my technical buy points. As always
look for the market to be positive and volume to kick in as the stock moves through this
point. If both happen then its a technical buy in my book. SNWL at $99, VRTA at $60,
WEBM at $160, ADAP at $43, PDLI at $182, EFNT at $77, ENZ at $72, MAXY at $72,
DIGX at $76, CORR $96, ABSC at $79, QLGC at $76, RNBO which is ready to break out
of a nice formation at $50, SSOL at $70, TMWD at $57.

A few of the stand outs in this group as far as earnings growth or revenues are SNWL,
EFNT, DIGX, QLGC and RNBO. None of these are in the very strong Biotech group, but
their charts are very strong looking. I own none of these nor any of the ones listed here
tonight. But by tomorrow night I’m sure I’ll own some of them. Here is a chart of one of
them

2/3
Today Foundry Networks (FDRY) went into the model portfolio at $122 as it traded there
most of the day. This leaves the model portfolio with CHKP and FDRY as the only stocks
in the model portfolio.

I’ll see you tomorrow and the stock comment section of the web site in the member login
area is active once again as stocks are on the move. I will try to get to up date it twice a
week.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 July 2000

Hello out there stock fans. The market continues its very choppy behavior with many
stocks up strong for a day or two or just 2 to 4 hours, then down $4 to $8 in less time than
it took you to go get coffee. Such was the case today with many Biotech’s and networking
stocks.

The NASDAQ refuses to go up, but at the same time refuses to go down. Locked in a
tight trading range for the last 5 weeks with a bias to the upside. I was thinking that with
many of the leading stocks like BRCM, BRCD, JNPR and a host of others leading stocks
so very extended, the chances of the NASDAQ advancing any further would seem
remote and to me and it still does.

The NASDAQ is having trouble getting over the 4120 area which is that trend line that I
showed you the other day. This 4120 also represents just 30 points over that 50% re-
tracement point I talked about two weeks ago.

So this area is our point of resistance. A break above it could make the NASDAQ move
like it used to for some time. Until this area is broken, the market will not perform like we
would like it to. It may maybe best to stay as close to cash as possible with maybe some
light positions in some selected strong stocks and some of the Biotech’s come to mind
here.

Having said all that, Yahoo! (YHOO) posted earnings after the bell today and posted what
I would call spectacular numbers. Far beyond anything I thought possible as the revenue
and earnings curve for this mid cap internet stock have begun to slow over the past few
quarters. However with today’s blow out revenues of about $280 million vs. $228 million
last quarter and $201 the quarter prior, things look like they are beginning to expand once
again.

This stock is up over $15 from its official close on very heavy volume in after hours
trading. I also see a number of leading stocks up $2 to $5 in after hours along with futures
up some 70 points which suggests to me, we could be in for a big day tomorrow.
Hopefully if a rally ensues, the NASDAQ takes out the 4120 area and closes above it with
a big bust of volume. Lack of volume equals lack of convection.

Let’s take a look at the NASDAQ chart and that pesky 4120 point.

1/5
In the volume section of this chart you’ll see two down arrows that show high volume with
the NASDAQ going nowhere. More Importantly, between the arrows you’ll see light
volume as the NASDAQ tries to rally up. This is very negative as this behavior should be
reversed. It should be high volume on big up days and light volume on down days.

Last nights stock selection Virata Corp. (VRTA) had a very big day today shooting up $8
today as it came out of its base. The stock is one of the few stocks with a good base that
rallied well of late. Volume exploded to 2.7 million shares or almost triple daily average
volume.

2/5
The Biotech’s continue to move well with HGSI moving up $18 at one time before giving
ground on very high volume. PDLI announced a 2 for 1 stock split after the bell and it’s up
$6 in after hours trading. The Biotech index is very close to new highs but is extended.
However many stocks in this group look very good. AFFX and a host of others are poised
to make further gains if the market stays positive. Here is a chart of this leading index.

3/5
Model portfolio stocks FDRY and CHKP are acting fair. FDRY came down on heavy
volume to test support at the $115 area and then turned up. It’s up $3 to $120 in after
hours trading along with many others. Stops on FDRY are at $112.

Just for fun folks, here is a former leading stock and one of the reasons that "buy and
hold for the long term" is such a failed methodology when it comes to investing.

4/5
Very few stocks are truly worthy of this saying.

Here are some picks for tomorrow to have a look at with my buy points. DNA at $176,
NTAP at $85, CKCM at $33, AMSC at $55, ASWX at $80, GENE at $32, MLNM at $140,
AFFX at $200, WEBM at $160, WGRD at $64, VRSN at $179, XMSR at $40.

See you guys tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. SDLI should have read $384 in last nights letter. However if JDSU keeps coming
down like it has been on such heavy volume, $284 may be the buyout price of SDLI.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 July 2000

Hello out there stock fans. The NASDAQ staged a very impressive rally today with
volume expanding to almost 1.7 billion shares with advancing issues swamping declining
issues by about 2 to 1, while advancing volume dwarfed declining volume by a wide 5 to
1 margin. The NASDAQ also put in a break away gap with a close near resistance at the
4120 area. With this type of breadth and volume we should easily take out 4120
tomorrow.

I say easily because after the bell today Ariba (ARBA) posted earnings numbers that
show with out question, the greatest expansion of revenues in any company I think I have
ever witnessed at this early stage of a companies early growth cycle. Revenues for this
last quarter were up close to 800% to $80 million vs. same quarter last year and up100%
from the last quarter. By the way JNPR and SCMR are a very close second.

The way this stock was acting today combined with the fact that YHOO was acting strong
with follow through of price and volume from yesterdays earnings, strongly suggested to
me that ARBA would have stellar numbers today after the bell and it did just that. Also the
entire B2B sector including Commerce One (CMRC), Verticalnet (VERT) and others were
on the move through-out the day. We are seeing rotation back into this once mighty and
often extremely powerful group The entire internet group that is not just B2B. The internet
stocks folks move like no other stocks.

You can’t deny these types of earnings and they will persist for many moons to come.
Besides, all the negative press over the past few months should help propel this group
going forward from here. After all they are deeply oversold and need to be re-bought.

By the way ARBA is up another $12 on top of today’s $12 move in after hours trading on
heavy volume. Also up in after hours trading is CMRC and a host of other B2B stocks.

Other stocks that have reported super earnings after the bell today are AMCC and RBAK.
These two reported much better than expected earnings and revenue numbers and both
are up in after hours trading. AMCC is not extended and is breaking out at $125, while
RBAK is extended but may go further.

Tonight I have three charts. One is a very nice picture of a technical break out with heavy
volume ala eBAY which you may remember back 10 months ago. This stock has the
browser or portal software for cellular phones and revenues are up big and this company
is expected to report .08 earnings in a week or so. Phone.com (PHCM) is the stock and I
bought some today as it crossed this technical buy point today.

1/4
Another chart is that of a leading index that you’ll find on the move when the market is
ready to make a strong advance. That index is of the Brokerage group and it broke out
yesterday. Here is a chart of this index known as XBD.

2/4
Here is a chart of the best base in the stock market today. It is of course Check Point
software (CHKP). This model portfolio stock almost broke out today and stopped just
short of going into new move highs off the right side of the formation. Maybe tomorrow it
goes. I’m very happy though with its $17 advance on high volume. The stock is at the end
of a 6 week base.

There are so many stocks ready to move its just impossible to show the charts of so
many. This is why you need a very good chart program to follow them yourself. With my
help pointing out the patterns and such, you’ll get the hang of it yourself. Here are some
good looking stocks with nice patterns that are ready to go.

CMTN at $95, DCTM at $99, EPNY at $120, GSPN at $125, ITWO at $124, MRVL at
$60, ORBK at $101, PHYX at $27, PMCS at $211, RFMD at $88, SSOL at $70, TLGD at
$141, VIGN at $47.

Some of these stocks like EPNY just broke out today but have plenty of room to move.
PMCS may do the same as earnings are due out tomorrow after the bell. JNPR is due to
report tomorrow, but this stock has had a very big run and I’m afraid it may run up then
reverse. Not sure but just cautious.

VRTA a stock with a chart here two days ago had a second day of high volume and follow
through of price today. This in my book says this stock is a keeper for 4 to 6 weeks at
least and maybe longer.

3/4
By the way if the nets heat up again then CMGI should come back as its internet
properties will escalate in value. It had a nice gap up today on heavy volume. There are
lots of losers in this stock to provide overhead resistance though as the stock moves up.

See you on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 July 2000

Hello out there stock trading fans. The market continues to rally up on very good volume,
but is getting close to being short term over bought. The market still is very positive with
leading groups either hitting new highs or very close to it.

There were many big winners from the day trading list this week with stocks like EPNY
tacking on $28 points the day after I highlighted it. GSPN broke out at moved up $22 on
Thursday. WEBM moved out of its base and tacked on $32 from my buy point. CMTN
moved out of its base on strong volume and into new highs with a gain of $20 from my
buy point. ITWO up $18 on very strong volume as it broke out from its descending trend
line. AMCC listed with a buy point of $126 gapped up $25 to $150 and benefited no one
with a gap this big. This stock is not giving back any of its gains after its super earnings. I
think this stock is a strong candidate to hit $200 over the next month or two with this type
of earnings and price action.

On Thursday after the bell Juniper Networks (JNPR) reported a near doubling of
revenues and earnings over its last quarterly earnings. It didn’t take a year to double
earning and revenues, just one quarter. This stock and other stocks in this group
responded well as did JNPR with all tacking on gains of about $10 for the day. These
included our newest model stocks Sycamore Networks (SCMR) and Foundry Networks
(FDRY). Both FDRY and SCMR moved out of small consolidation areas and should make
more progress this week.

On Tuesday of this week we have a CPI and jobless claims report due out. The CPI is
forecasted to be about .5%. A very healthy gain mostly due to higher oil prices in late
May. How the market takes this is anybody’s guess, but I’m sure it’s a well know fact that
this number is going to be very high, so I can only assume that its been discounted
already. However stocks have already had a big gain and a small rest overall this week
could be in order. Of course many selected stocks will still move very well.

On Tuesday there are many stocks that will be reporting earnings and I hear a few
include ITWO, CMRC, RMBS. All three of these are acting well with CMRC the most
extended. Then on Wednesday after the bell EPNY, EXDS and EXTR report. EXTR in this
group is the most extended right now. Inside the web site in the members’ login area
there are a number of calendars and one of them is an earnings calendar in addition to
the chat room where breaks outs are often talked about as they happen.

Here are some charts of the stocks that are ready to report earnings and a few that just
look ready to move out.

1/6
This stock (ITWO) was a big winner in the last market move and is a B2B software
company with very big revenue growth and fair earnings. This stock like many stocks that
are having better than expected earnings are rallying in advance. So be on your toes and
she may go.

This stock (RMBS) woke up pretty good on Friday with a big burst of morning buying and
a good size break away gap.

2/6
3/6
Here are some other picks for the active trader. CHKP at $241 is a model stock with
earnings due out this week. ABSC at $83, COHR at $91, DIGX at $80 will be breaking out
of a cup and handle formation. GSPN at $151,

Here are some big movers that were listed here last week prior to their moves. Here is
their latest picture for my most wanted files.

4/6
As you know Sycamore Networks (SCMR) was added to the model portfolio on Friday.
The stock traded most of the early morning at the $134 to $132 are with a dip down to the
$128.50 area. I will add this stock in at $133. Here is its latest picture

5/6
A few stocks of notable interest due to volume and price action are PALM, LBRT, CPTH,
and EFNT

I will have more for you tomorrow.

Daniel J. Zanger.

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 July 2000

Hello out there stock fans. The NASDAQ continues to make progress with many stocks
tacking on good gains on the heels of tomorrows CPI numbers and jobs report. Seems
tomorrow’s numbers must be a non-event otherwise we probably wouldn’t see such big
gains in so many highflying issues.

Today we finally saw model portfolio stock Check Point Software (CHKP) break out and
run extremely well from a 6-week base on 3.4 million shares or nearly triple daily average
volume. These 3.4 million shares are almost a record day for volume as well. The stock
closed up $24 to $260 and with earnings due out Wednesday evening things could get
even more exciting. There is also a 2 for 1 stock split payable next week. Often people
get very giddy about a 2 for 1 stock split and this stock may benefit from this added
enthusiasm. If things go well on earnings with better than expected numbers, could we
then see $400 a share price tag on this stock shortly after the split. I hope so anyway.

Sycamore Networks (SCMR) had another fine day today moving up almost $12 to $150
on expanding volume of better than daily average volume by almost 1 million shares. It
appears this stock has much more life in it over the short term. Meanwhile Foundry
Networks (FDRY) is lagging slightly and earnings are due out on it I hear either tomorrow

1/2
or Wednesday. Seems the market is a bit more trepid about this stock than some of the
others. I’ll tighten stops to $121 on FDRY or just under where the original purchase price
was just in case.

Today after the bell, Copper Mountain (CMTN) reported earnings that were either in line
or less than expected depending on who I listen to and the stock is down in after hours
trading some $10. It maybe best to move onto others in the morning with this stock until
the sorting out of the earnings is over with.

Most stocks have moved very well already and consequently there are almost no charts
to show tonight. I do however have some more buy points for the avid chart reader and
trader. GSPN at $149, TLGD at $153, NAUN at $110, HOME at $34, TERN at $82, STOR
at $116, MLNM at $125 and hot dog stock PMCS at $131.

I will have more for you tomorrow but Wednesday I have to travel again so there will be
no letter on Wednesday.

See you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 July 2000

Hello out there stock fans. A CPI number that was slightly more than was expected even
though the core CPI of .02 was in line as was the jobs report and still the market came
unglued. Many leading stocks dropped from $5 to $16 in just a few minutes of trading. It
wasn’t until much later in the day that relief came, but that relief was only in a few
selected issues and most of those were the B2B stocks.

I had mentioned in Sunday’s letter the market was short term over bought and a pause to
refresh was due soon. The stronger than expected CPI number gave the market good
reason to take profits in this over bought scenario. Today’s sell off of 97 points on the
NASDAQ was on volume of 1.4 billion, which is less than what we have been seeing on
up days. This suggests a dry up in bids, which makes selling pressure move stocks down
easily.

After the bell today many stocks reported earnings with the majority of them better than
expected. However the mood of the market is negative after today’s market action and
most of these stocks with good earnings were down sharply in after hours trading. Stocks
like VRTS down some $30, BRCM down $8 on much better than expected earnings;
FDRY had very good earnings and it too dropped to $116 in after hours. CMRC with its .2
better than expected loss on strong revenue growth cratered $6 in after hours.

On the bright side INTC and MSFT posted what the street liked to see and Intel (INTC),
said that the next 2 quarters looked very strong. Both of these leading big cap stocks are
up in after hours trading, and this should help support the market tomorrow. Digital
Lightwave (DIGL) was the standout small cap stock today with its .20 per share earnings.
The stock was trading up $8 in after hours to $121.

Model portfolio stock Foundry Networks (FDRY) quickly hit my $121 stop today with its
quick $11 slide as many stocks were caving early on. This worked out well in our favor as
this stock with its .19 a share earnings dropped after the bell to $116. Revenues on this
company were up over 260% and earnings were .3 better than expected. This stock will
come back I think, its just the mood of the market right now is my guess.

If the market is in buy mode tomorrow here are some picks for the active chart reader to
consider. AMD at $93, EXFO at $77, GSPN at $149, ITWO at $142, NUAN at $112, and
PWER at $149.

SCMR and CHKP are looking very good still and tomorrow after the bell CHKP reports
earnings. Stops on this stock are at $235 just in case.

Again no charts until a few more stocks set up. Remember no letter tomorrow, as I have
to travel again. I should have a small note on Thursday though.

1/2
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 July 2000

The market has come down hard for two consecutive days. Many stocks including many
leadership type stocks like, BRCM, BRCD, JNPR and others including most of the
Biotech’s are breaking down out of chart formation. In a good market these stocks should
not be doing that therefore, it may be time to raise some cash, if you haven’t done so
already today.

As you know we got stopped out of CHKP at $235 today as fear drove the stock down to
$217 with many people selling in fear that this stock may break down like many others we
have seen with better than expected earnings.. However, after the bell it reported $0.08
better than expected earnings and is up $10 in after hours, trading at $235.

The NASDQ is sitting on a rising trend line at about the 4055 area and the break of the
rising trend line could induce further selling. On the other hand we are now short term
oversold just a little and a bounce could be close by. I’ll set stops for SCMR at $130. It
would appear that going forward the market is going to remain very choppy but what’s
new these days.

Here is a chart of the NASDAQ.

1/2
JDSU and SDLI are up some 15 points in after hours as JDSU is being added to the S&P
500 and many stocks seem frisky after this news hit the wire. Also many stocks reported
strong earnings after the bell including AMD, EPNY and CHKP.

See you Thursday with a note or some picks.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 July 2000

Hello out there stock fans. A huge day for the NASDAQ today with Mr. Greenspan giving
thumbs up to interest rates being on hold for some time as a big possibility. Bonds soared
on his words and the morning rally in the stock market that was underway early extended
itself when he uttered those words. The NASDAQ closed on the high with a 128 point
rally. This close on the high suggests further gains are ahead of us.

As you know we got stopped out of CHKP from too many people fearing poor earnings
and selling the stock in advance. The stock gapped up today some $12 and continued
higher to $250 before pulling back to $243. The stock pattern and health of this stock is
very much intact and I bought back into it today. With a healthy market and a 2 for 1 split
due next week, this stock should move much higher. In fact I will add it back into the
model portfolio tomorrow 200 shares up to $252 just in case.

There is such extreme swings in stocks these days and as a result no charts are setting
up well. I do feel however that there are many stocks very much worth owning right now,
so I thought I would compile a small list of what are going to be the big movers over the
next few weeks and maybe months.

I bought many of these today and have I’ve owned some others for some time as well.
They all are the leaders in the market today and all have growth rates of over 200% per
year. They are BRCM, BRCD, JNPR, AMCC, JDSU, ARBA, CHKP, and SCMR. JDSU as
you know will go in the S&P 500 next Wednesday and this should keep this stock moving
much higher over the next 4 days.. Keep on eye on this tock next Wednesday at the last
half hour of the day. It should soar.

If I were to construct a model portfolio based on growth rates and leadership in the
market today it would be these stocks listed above at the very top of my list and possibly
be the only stocks I would own right now. Other fast movers that aren’t listed here I would
only trade in and out of for fun and profits.

I will add 300 shares of AMCC to the model portfolio at $160 to $166 area tomorrow,
JDSU 400 shares at $126 to $133 area tomorrow. ARBA is also worthy so I will add 300
shares are $133 to $136 area.

I will have more for you on Sunday.

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 July 2000

Hello out there stock fans. Lack of follow through on Friday as many chips stocks
continues to slide with some down as much as 20% for the week. This lack of follow
through in many other strong stocks too seems to be the hallmark of this market move
and lately were lucky to get one strong day before a sell off or reversal of a prior days
move ensues. A very choppy market in which short term momentum trading is of little use
at this time.

On the other hand buying super strong stocks that have sold off for a few days seems to
be were the gains, albeit small, have been. This dip buying as good as it may be now will
certainly be very painful when a hard sell off starts as one might think its a good time to
enter stocks that are down and the next thing you know you deeply under water.

The are only a few handfuls of stocks that are moving up right now and this usually
means trouble in the overall maybe near by. Additionally there are many negatives in the
sentiment camp, such as the put to call ratio with call buying far exceeding put buying and
bullish sentiment readings of near 56 percent Bulls . On the positive side the long bond
keeps moving up dropping yields down as low as 5.79% during the day on Friday and the
XOI index or the oil tracking index keeps moving lower.

With momentum slowing in many stocks and everyone betting on higher prices per the
put to call ratio and sentiment readings we could be in for a correction of some sort or a
very slow advance at best. If we do get into a correction I doubt it would be a big one but
maybe around 7 to 10% would be my guess if we do.

On Friday I added four stocks the model portfolio AMCC, JDSU, CHKP, and ARBA.
Considering the market had no follow through as we usually get after the market closes
on the high, but a big reversal of some 90 points, I was very satisfied with the price
movement of all stocks added. ARBA had news of insiders wanting to sell some 2 million
shares and this news negatively impacted the stock as it sold off some 9 points. This
stock should rebound soon as they often due after such news.

AMCC went in the model portfolio at $157 as that’s where it traded for the early part of the
day. JDSU at $127, CHKP at $242 with a morning low of $236 just after the morning
open. ARBA at $132 which is where is traded often before it started to slide.

The model portfolio now contains these 5 stocks. SCMR, JDSU, AMCC, ARBA and
CHKP.

One stock that still stands out to me is Virata Corp. (VRTA). I told everyone here on two
occasions that the way this stock broke out from its base at $60 to its first correction high
point of $83 was a text book example of what a great moving stock should due when it

1/4
first breaks out and runs. Follow through, follow through, follow through. The stock just
finished its first natural reaction after coming out of a base two weeks ago. This natural
reaction is a slight retracement of the first up leg.

After the retracment the next up leg begins and that’s what happened on Friday with
another big move coming out of its resting area. The stock moved up $11 during the day
and closed into new move highs at $83 on expanding volume. This stock is worthy of
being a portfolio stock now that I see how this stock runs. Earnings are due out on
Tuesday and by the way this stock acts is has a good possibility of being a gapper on the
news. No guarantees of course, just my opinion.

This company is in the Telecomm group as it provides DSL modules and software. The
company is very under owned with only about 11% institutional ownership as of this last
quarter. There are only 20 million shares that float and revenue growth is fantastic with
gains last quarter ending in March of 397% to $12 million dollars. The was a slight loss of
.03, but that could easily be erased this quarter and I think that’s what the market thinks
too. I do own this stock as of Friday.

Here is a one of the most positive looking chart patterns in the stock market today.

We also saw another stock I highlighted just a week ago at $78 move big on Friday and
that was Phone.com (PHCM). The stock had an explosive move on Friday with a burst of
some 10 million shares as the stock leaped 17 points during the day to hit a high of $107
before settling down to close the day at $110 and far above its upper trading band which
means its very extended right now.

2/4
Volume foretold the future as well as the chart pattern on this stock. Please see the
newsletter archives in the web site in the member login area for a recap if you like.

Two other stocks with nice bases that have yet to report earnings are Verisign (VRSN)
and Affymetrex (AFFX). Here are the bases on these two.

3/4
Here are some other stocks with interest and my buy points. SEPR at $132, SAPE at
$131, HAND at $46, ULCM at $50, ZIXI at $57, ARTG at $124.

See you folks on Monday.

Daniel J. Zanger

Chartpattern.com

P.S. I will not be adding VRTA to the model as it is out of buy power right now.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 July 2000

Hello out there stock fans. The market had a good rally underway this morning in many
selected leadership issues. This rally for the most part was sparked by the news between
Nortel Networks (NT) and a prior stock selection at $200 in the hot fiber optic sector,
Corning Inc (GLW) . Seems GLW wants a part of NTs fiber optic components division for
a hefty sum of stock.

Many stocks in this super strong fiber optic group rallied strongly for the first 2 hours, but
things began to unravel over the next few hours as the NASDAQ broke support of two
trend lines which I’ll show you tonight.

Many other stocks that I talked about last week that were out of momentum like Brocade
Comm. Systems (BRCD) and Juniper Networks (JNPR) to name a few rolled over good
today giving up anywhere from 8 to 16 points during the day. Other stocks like EPNY and
WEBM have broken prior bases which took weeks to build. Let’s take a look at some of
these and their broken trend lines.

1/4
2/4
Seems the summer rally of 7 weeks is over with for now and it lasted the same duration
of time that the summer rally did in 1997. Coincidentally that summer rally started on the
same day as this rally did of June 1st.

With many stocks rolling over and breaking down out of formation like they are now, it will
probably be around 5 to 6 weeks before the repair work to rebuild the bases will be
finished. This will need to be accomplished before a new up leg can start.

This 5 to 6 weeks is also about the time the Fed.’s meet to decide on rates once again.
Could this meetings’ outcome in late August be the spark that the market will be looking
for to get things going again? It could very well be would be my guess.

Today was a very choppy day for the model portfolio with many of the stocks rallying up 4
to 8 points early on only to succumb to selling pressure like most other techs’ stocks.
AMCC held on best in positive territory till the final few ticks of the day and closed down a
point. JDSU sold off sooner with the fiber group, but still holding up very well at $132.
CHKP scooted up 8 points early to $260 on very light volume until traders fearful of
tomorrows 2 for 1 split unloaded shares dropping the stock down to $238 during the day.

SCMR hit my stop of $130 as this whole networking group is resting. This stock is now
out of the model. Here are some stops for the other model stocks. CHKP which splits
tomorrow 2 for 1 at $115, JDSU at $124, AMCC at $153, and ARBA at $109.

Before I get to some potential picks tonight let me tell you that starting next week, entry
into the chat room will be by registered password only. If you don’t have one or don’t care
what your password is that’s ok. Just e-mail us your preference or the password you’d like

3/4
to us at [email protected]. We’ll send you a password confirmation within 24
hours.

Here are some potential shorts for tomorrow. PDLI at $158, BLDP at $101, SFA at $77.
AFFX which reported worse than expected earnings at the opening price tomorrow at it
gaps down or rally’s up a few points. There are no longs right now even though the
market may bounce tomorrow or the next day.

By the way on AFFX today, the stock started to rally up near the buy zone, but there was
very little volume on it or most other biotech’s today. This is a clear warning sign that
should stick in your mind on reading these type of situations going forward. I said in last
nights letter, look for volume to expand to 1.2 million shares or better. The volume never
came close to this number nor did the stock accelerate as it touched the buy zone for just
a brief moment. Two warning signs that said stay away for now.

See you tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 July 2000

Hello out there stock fans. Due to a small unforeseen emergency there will be no letter
tonight. I hope to be back tomorrow night. If not, Sunday for sure. Not missing much in
the way of stock right now anyway.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 July 2000

Hello out there stock fans. On Thursday of this past week Nokia (NOK) reported a
flattening of earnings growth going forward and chip stocks in most industries took a
discount as a result of potential slowing sales in coming months.

Bad news as this was, the worst news of the week came on Friday when the GDP
numbers released showed that the economy grew at a faster pace than Alan Greenspan
was looking for when the Federal Reserve raised rates .5% to 6.5% in May. Mr.
Greenspan was looking to slow the economy to a growth rate of 3 to 3.5% and not the
reported 5.5% that we got. This suggests that the half point rate increase did not have the
desired effect he was looking for and now it’s presumed that interests rates will go up
again come this August.

This is why the NASDAQ had a violent reaction to this report and sold off hard to break
support which I had pencilled in at the 3722 area on higher volume . We are now just
about 80 points from filling the gap which occurred on June 2d. I feel quite certain that we
will fill this gap area. When this does happen, this will show further weakness in the
NASDAQ should be just around the corner in the coming weeks.

1/3
We are short term oversold and due for a bounce, but this may come from much lower
levels as the lower trading band is at 3422 and we could very well go below it before this
bounce ensues. At any rate this bounce should come sometime early this week. Then
maybe the NASDAQ bounces back up to the 3900 area +/-, before a further sell off
ensues possibly taking us back down to the 3200 area or lower over the next few weeks.

After we snap back up to the 3800 to 3900 area, I will have a number of stocks to look at
technically that may work out on the short side. The few I had last week AFFX, BLDP and
PDLI have been very effective so far with 10 to 25 point gains and there will be many
others to come.

As you know all model stocks were stopped out with very tight stops of 2 to 3 points
below the buy point expect ARBA which had a lower stop. The model is now 100% in
cash.

By the way the SOX index maybe nearing a short term bottom as you’ll see here in this
chart. This chart in no way suggests owning chip stocks to me or any stock right now
other than quick day trades or maybe two day holds.

I will have more for you on Monday.

Daniel J Zanger

Chartpattern.com

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 31 July 2000

Hello out there stock fans. Today we saw the start of the snap back that I said we would
get this week. This came after the NASDAQ dropped another 50 or so points early on.
The NASDAQ rallied on reduced volume and finished the day up 103 points to 3766. This
is just 140 or so points away from my snap back target of somewhere in the 3900 area.

Many stocks continued to tumble today while most of the leadership stocks of JNPR,
AMCC, BRCD, PMCS and a dozen others responding well with gains of $7 to $15 points
each. These leadership stocks also look poised to make further gains tomorrow as well
with good closes near their highs of the day suggesting this.

Lets take a look at the OTC and some of these stocks to see where they might stall out
for now in the coming days.

1/3
2/3
Here are some other stocks to look at for further possible gains tomorrow with my
technical buy points. PALM at $40, QLGC at $79, and AVNX at $130.

To tell you the truth stock fans, I wouldn’t mind just a double test of today’s lows and not a
retest of the lows set in April and May. Some of the charts of stocks like ARBA, JNPR,
BRCD and TIBX are still very tight in formation which leads me to think we might not sell
off back to the 3200 area. We shall see, stay tuned.

See you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 August 2000

Hello out there stock fans. Lack of follow through again today which as I’ve said here
before is the hallmark of this market for the past 4 to 5 weeks. The market was poised to
move forward after a strong day yesterday and again it failed to do so once again.

Today we had two reports, the NAPM survey and construction spending. Both showed the
economy growing moderately with a bias to slowing in constructing spending. This moved
long bonds up fractionally and rates on the long bond down to 5.76%, But all that good
news had little effect on tech stocks as these stocks held firm at lower levels most of the
day, until the last hour of the day when selling pick up and stocks moved lower again.

The only bright spots today if you can call it that, was a snap back in the biotech sector
from deeply oversold levels while utilities were hitting new highs. Other than that it was
one of the more lack luster days of this year.

I for one am doing no trading or investing all right now and maintaining a 98% or better
cash level. At some point in time things will bottom out and I will reinvest this cash, but for
right now with so many quick reversals in stocks at the most inopportune time, I find it
best to stay in cash.

For the active day trader here are some potential movers in both directions depending on
the which way the market is moving. First potential shorts. AMCC at $135, ATON at $125,
EXTR at $131, GSPN at $102, NUFO at $85. A few potential longs are HGSI at $134,
IDPH at $133, IMNX at $55, IWOV at $68, JNPR at $145, MRX at $63, PMCS at $194.

I’ll see you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 August 2000

Hello out there stock fans. Another rally that lead to failure today for most leading tech
stocks. Only the biotech’s held up for most of the day with Protein Design Labs (PDLI)
posting much better than expected earnings which moved the stock up as high as $22
before settling down to close the day up $15 on heavy volume.

Remember the Biotech’s started to sell off early before the rest of the tech stocks sold off
with about a 10 day lead time. If a sustainable rally can be had in the Biotech’s or further
weakness is avoided, then maybe we are close to bottoming (+/- a few weeks) in the rest
of the high tech stocks and the NASDAQ in general.

At any rate what we need to see is late day buying for multiple days and not late day
selling such has been the norm over the past few weeks. This change in buying would
signal a shift in market mode from negative to positive which should signal the end to this
correction.

I do think we are short term oversold with so many down days over the past few weeks
versus just a few weak up days. A good rally of a day of two should be here very soon. I
would not buy into it for holding stocks long term when it does hit however. For me it
would be just to hold stocks for a day or two at most.

Here are some long picks of some stock ready to move if the market is positive. AFFX at
$144, ARTG at $85, NUAN at $143, QLGC at $76, NTRO at $54, INKT at $106, MRVL at
$47.

Again be careful of holding stocks into the last hour and a half of trading as that’s when
most of the pain sets in on the NASDAQ.

I will have more for you tomorrow. By the way I will have no letter this Sunday as I’m
moving my operation to another location and need the weekend to set up shop.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 August 2000

Hello out there stock fans. I had mentioned on Wednesday of last week that we were due
for a good rally and that’s what we got on Thursday after a good drop at the open. So far
we are holding on to these gains with many of the leading issues coming out of
constructive bases that have building during this very hard market break of the past two
weeks. The best new is that leading stocks are not only holding on to gains made on
Thursday but also extending them.

The fact that many leading issues are coming out of base bottoms like Tibco Software
(TIBX) Broadcom (BRCM) Juniper (JNPR) suggests to me that we have put in a bottom
on the NASDAQ as of last Thursday. Let’s take a look at some of the very positive charts
right now so as to get a clearer picture of the market.

1/4
2/4
The NASDAQ will soon hit resistance which should come as soon as tomorrow at 3900.
Here is a chart of the OTC and a standard descending trend line which are broken most
of the time to the upside. This may come tomorrow or if not shortly.

3/4
Here are some other stocks to look with my buy points for the active chart reader and
trader. SAPE at $141, BLUE at 70, INKT at $112, PMCS at $197, QLGC at $83, YHOO at
$137, AMD at $67, EXTR at $150 and a strong looking chart is IWOV at $78.

I will have more tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 August 2000

Hello out there stock fans. A very good day today for many leading technology issues
with many of them hitting new highs. Stocks such as Ariba (ARBA) up as much as $10 on
very heavy volume hitting new move highs. Extreme Networks (EXTR) moving up over
$10 on high volume and into record territory. Leading stocks hitting new highs is very
bullish for the market.

After the bell today Cisco Systems (CSCO) reported better than expected earnings by .01
hitting the whisper number of .16. This stock is up over $2 in after hours trading. Juniper
Networks (JNPR) and Sycamore Networks (SCMR) both leaped over $6 in after hours
trading in sympathy with CSCO’s great numbers as these two stocks are in the same
group as CSCO. The are many other stocks that are up in after hours trading as a result
of CSCO’s numbers. This leads me to believe that the NASDAQ could power through its
descending trend line that I had in last nights letter possibly as soon as tomorrow. The
break of this line comes in on NASDAQ at 3900.

Good news also comes from the brokerage sector and the utilities index which continues
to make new highs. This is good news because this are leading sectors. It also appears
that the DJIA is breaking out of a long horizontal base. This all adds up to the standard
Presidential rally which historically has been a very good time to invest.

Here is a stock that maybe ready to move tomorrow or very soon. It’s one of the leading
fiber optic stocks.

1/2
Here are some other picks for the active chart reader with my buy points. MU at $79,
CIEN at $154, EPNY at $96 and SPWX at $104.

I’ll see you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 August 2000

Hello out there stock fans. The NASDAQ had a good day at the open and for most of the
day today with many leading stocks tacking on gains of $3 to $20 until the final hour of
trading when a bout of profit taking set in. Many stocks caved in during this time giving up
most or all of their gains. Leading stocks like ARBA and BRCD closed down 7 to 10
points each on fair volume.

The NASDAQ crossed above that trend line I showed you last night at the 3900 area
early today, but couldn’t sustain its momentum to keep itself above this trend line.
Keeping its head above this line is critical to the health of this move. The fact the
NASDAQ couldn’t hold above this area which also is where the 200 day moving average
line is, suggests to me that we are in for some more corrective action which cold take
place starting tomorrow.

After the bell today Applied Materials (AMAT) reported better than expected earnings and
this stock is up only fractionally in after hours trading while many other leading stocks
moved slightly lower. At any rate after the NASDAQ has tacked on some 300+ points over
the past four days and doesn’t yet have the mustard to get above that line. Let’s look at a
chart of the NASDAQ and see what’s up.

1/2
Today the Dallas Fed released its beige book which showed that the economy cooled at
the start of summer though labor markets remained tight. This sent the bench mark 10
year bond up and yields down to around the 5.90%. We now have the 10 year and the 30
year bond yielding under 6% which suggests inflation is well under control. We also have
a Fed meeting coming up in a few weeks and the market is eagerly awaiting its verdict on
interests rates.

Due to market action today I see no stocks on my charts tonight to list for possible long
position. I do however see some for possible short sales. They are VRSN at $145, AETH
at $134, and FDRY at $79.

I will be back on Sunday.

Daniel J. Zanger

Chartpattern.com

P.S. The seminar for Miami has been set for October 14th. It will be at the Radisson
Deauville Resort in the South Beach area on Collins Ave. The fee is $795 and seating is
very limited. The last show was a sell out so get you reservations in early. I will have a link
for you on Sunday to view all the pertinent stuff. Or you can e-mail us at
[email protected] to reserve your spot.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 August 2000

Hello out there stock fans. The DJIA and many older economy stocks continue to forge
ahead along with market directional sectors like the brokerages and the utilities which are
hitting new highs. We are also seeing the NASDAQ lagging behind for the first time is
over two years.

I do see some potential bright spots setting up on the NASDAQ as we get closer to some
late reporting earnings on a few selected companies. Combine this with a Fed meeting on
interest rates due up next week and we could be in for some big moves one way or
another soon. If the NASDAQ is going to move, I would expect it to start with the
resolution of interest rates due next week.

The are a number of charts that are setting up very well should the NASDAQ decide to
get underway in a meaningful way. A meaningful way to me is that a stock breaks out of a
constructive base and continues to run for at least 6 weeks or longer. Since the big
market break on the NASDAQ back in March only a few stocks like SDLI have had
successful runs.

Here are some potential NASDAQ movers that are set to go with two of them, Ciena
(CIEN) and Sycamore Networks (SCMR) set to release earnings this week.

1/5
2/5
Here is a company that is new to this letter. Earnings for the last quarter are up 367% to
.28 while revenues are up 120% to $113 million. There are only 31 million shares that
float and there is a 2 for 1 stock split due very soon. I did buy this stock off the lower
trading bands and still own it.

3/5
Here are some stocks with my buy points for the more active chart reader to look at.
EMKR at $102, EXTR at $158, CMRC at $51, ONXX at $23, PLXS at $121, and NEWP
at $123.

By the way JNPR is setting up with a tight cup and handle too, but it may need more time.
It does act well right.

Here is a link with all the information on the seminar in Miami Beach on October 14, 2000.

Http://www.chartpattern.com/seminars/miami.gif

I will see you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 August 2000

Hello out there stock fans. The DJIA continues to post strong gains with a good rally
today of 148 points today and clearing its most recent base. The NASDAQ posted solid
gains too with the usual leadership there posting gains of $6 to $15 points.

Many stocks is the leadership role on the NASDAQ are rebuilding their bases just fine
after the most recent sell off. This is exactly what I said might happen when the sell off
started some 3 weeks ago. I mentioned that leadership stocks would come around and
be ready to break into new highs about the time the Fed meets and renders its decision
on rates. It appears this is going to happen and in fact, we were seeing that today on
some selected strong stocks with more to come.

Today we saw all of the stocks in last night letter moving well like ITWO breaking out on
1.5 times normal daily average volume and closing up over $7 while clearing its base and
closed the day at $154. CIEN moved up and broke that descending trend line that I had in
last nights letter on very good volume. It closed the day up over $7 too. Lets take a look
at those charts once again.

1/4
Other stocks are coming around too like BRCM and PMCS which had very good moves
today on good volume. Both are very close to breaking out of good looking base
formations. Here are the charts on those stocks

2/4
By the way all of these stocks have earning and revenues up well over 150% over the
past year with most having numbers in excess of 200%.

Here is the best looking and acting Biotech that’s on the move and earnings were just
posted on this stock a week ago. They were super strong as is the base. Revenues were
up 264% to 20 million and earnings were up 146% to .23. The stock has a 2 for 1 split
due soon and there is only just over 19 million total shares outstanding. Here is the chart.

3/4
Here are some possible picks for the active day trader and chart reader. ARTG at $93,
AVCT at $49, DIGL at $104, CFLO at $84, CORV at $93, and GLW which is still trying to
come out of its base at $287.

I’ll see you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 August 2000

Hello out there stock fans. The NASDAQ had a fair day today with many stocks up
modestly for much of the day. However many stocks did lose some ground late in the day
to a bout of profit taking on the heels of tomorrows CPI numbers that are due out before
the bell.

Chip stocks as you may know are coming off deeply oversold levels with two days now of
a snap back. Stocks like RMBS, TXN, AMAT and others are bouncing well, but have a
long way to go before their charts start to look respectable again. A few charts in this
group that do look very good are MU and ELNT. Both of these two have been listed here
in the day traders section during the past week and good gains have been made in both.

Let’s look at the SOX index and see how it looks. Then let’s look at some very positive
chip stock charts. First up is Micron (MU) and then Elantec Semi (ELNT). Both of these
charts are tight in formation which is considered positive.

1/4
2/4
After the bell today Ciena (CIEN) reported that it will split its shares 2 for 1. 10 minutes
before the close of trading today this stock was trading down to $163. In this last 10
minutes of the day the stock roared up to $171 on an additional 1 million shares. Then
after the bell, the stock split was announced. Talk about insider information that the SEC
just announced would end. I guess it hasn’t and probably never will.

On a more positive note, CIEN said they will announce earnings just before the bell on
Thursday morning. For a company to announce a stock split before earnings, strongly
suggests that the company will beat earnings estimates by a good margin. This is my
guess why the stock roared up and continues up in after hours trading to a high of $173.
Look for good things on this stock on Thursday morning.

Just before the last market break some four weeks ago, I was highlighting a very good
acting and looking stock. That stock was Virata (VRTA) and like all other tech stocks it
broke down. Today that stock woke up in a big way and the chart once again looks very
positive and the stock is nearing new highs. The stock may move up one or two more
days or could rest starting tomorrow. At any rate this stock could move up to the 100 area
when the market moves well again. Also earnings were posted just before the stock broke
down and they were fabulous. Revenues were up 941% to over $27 million while
earnings were .02 beating consensus by .04. The company is in the DSL telecom market
and there is only a little over 24 million shares that float. Here is a chart of that stock.

Today ITWO had no follow though and in fact reversed and gave back all of yesterdays
gains on light volume. This is and has been a problem over the past several weeks. Until
this problem is fixed, it will be impossible to have any model stocks or even holding

3/4
stocks that are breaking out into new 52 week highs. This market to me seems more like
a market of short holding periods ( one, two or three days) until I can see stocks staying
stuck into new highs.

The are no day picks worth noting today.

I will have more tomorrow and hope for a good CPI number which I believe it will be.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 August 2000

Hello out there stock fans. Another modest day for the tech heavy NASDAQ with half of
the better stocks up and the other half down. The NASDAQ is trying to but so far hasn’t
had enough gusto to close above the 28 day moving average line. Once this does
happen and it could come soon, I expect to see many stocks like Broadcom (BRCM) and
most of the other leading internet infrastructure stocks moving out of recent basing areas.

After the bell today Brocade posted much better than expected earnings matching
whisper numbers of .16 with revenue growth at over $92 million for this quarter. This
earnings number puts this growth at over 500% for the quarter and revenues up some
400%. It’s these types of earnings numbers that I want to own. Here is a chart of this
powerhouse stock.

At last quote after hours the stock is up $5 to 201. Many other stocks in this group like
JNPR, SCMR, and related high tech stocks like CIEN and BRCM are up in after hours
too. This much better earnings number should be a big boast for this group tomorrow.
Let’s look at some charts of these big winners.

1/4
2/4
Here is a chart of the NASDAQ which like things is waiting for the Fed to meet on
Tuesday of next week.

3/4
Today VRTA which was highlighted in last nights chart was doing ok and was coming
down to touch that trend line that was in the chart at $73 for a standard retest. Well it not
only touched that trend line it blew threw it down to $62 as some very small trading house
said that the Verizon strike would dent their earnings going forward.

Two very large brokerage houses came out and defended this stock and said this would
only dent earnings fractionally. I think that once this strike is over with this stock should
rebound smartly. This is one of the pitfalls of owning smaller stocks on the NASDAQ.

Here are some picks for the active chart reader and day trader. AVCI at $140, RBAK at
$147, EPNY at $99, CAMP at $35, GSPN at $125, HOMS at $37, LWIN at $71, and
MCDT at $90.

I will see you folks on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 August 2000

Hello out there stock fans. The NASDAQ closed above the 28 day moving average line
on Thursday for the first time in about three weeks, but stopped just shy of the 200 day
moving average line which as of today stands at 3944. A close above both of these
market directional tools would be considered very positive.

Market leading and forecasting sectors such as the utilities and the brokerages continue
to sit atop new highs which are highly suggestive of further new highs to come in the tech
sector over the next few months.

Of course the Fed meets this Tuesday to consider interest rates. The futures market is
saying along with most interest sensitive stocks that the fed will not raise rates anymore
this year. This is what the market has been waiting for and with so many hyper growth
stocks like SCMR, JNPR, BRCD and BRCM sitting at or very near new highs, the market
could be set for a strong rally on the news. On the other hand it could also be sell the
news too.

The next two weeks are historically the lowest volume weeks in the stock market as most
professionals and Europeans are on vacation. Its going to be a wait and see situation for
everyone to be sure come Tuesday.

At any rate we all know that you buy tech in the fall and sell it in the spring, and with fall
just around the corner, I think any selling that may come on Tuesday would be short lived.

Many of us saw a number of stocks listed here during the week with their charts like
Sycamore Networks (SCMR), Broadcom (BRCM) and Ciena (CIEN) break out of nice
chart formations (see newsletter archives in the web site in the member login area).
SCMR has tacked on some 30 points since being listed and the gains so far have stuck.
BRCM broke out on fair volume and moved up $10 while CIEN broke out at $157 and
went as high as $190 before pulling back to close the week at $176.

Many other strong stocks that have either been shown here or listed in the day traders
department are making new highs including AMCC, AVCI, JNPR, and EXTR. Some of
these are just getting underway like AMCC while the others are resting after very big
moves. This is no bear market right now my bear market friends, but a stock pickers
market of just a few handfuls of stocks.

During this past week we saw the Chip equipment stocks along with a number of chip
stocks making strong gains. This group right now has the lowest P/E’s along with high
growth rates. This growth rate could continue well through the winter months. If that’s

1/3
going to be the case, then there are number of low P/E stocks in this group that could
move well. However low P/E stocks are low for a reason and that’s generally because no
one wants them or their products are generally considered commodities.

At any rate here are a number of chip stocks with high growth rates with badly beaten up
charts that could come around soon. Here are two that catch my eye.

Varian Semi Equipment Assoc. (VSEA)

Earnings for the last quarter were up 836% to .81 while revenues were up 202% to $192
million. There are only 29 million shares that float, so this stock could move well when it
wants to. Here is a chart of this beaten up stock that maybe on the mend. The P/E is a
meager 25.

Silicon Storage Tech (SSTI)

This company makes flash memory storage devices and revenues are leaping like JNPR
and SCMR. Revenues are up for the last quarter 349% to $103 million while earnings are
up over 999% to .24. The stock is just stating to rebuild its beaten up chart from the
summer sell off and over time this stock could be back to new highs.

2/3
Here are a number of stocks that maybe ready to move for the active chart reader and
short term position taker. SEBL at $176, IWOV at $79, MERX at $57, SNDK at $69.
RBAK at $153, RDWR at $34, QLGC at $94, PDLI at $157 and PLNR at $18.

During the week I will have many more charts.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 August 2000

Hello out there stock fans. A rather uninteresting day today except for the fact that the
NASDAQ closed above the 200 day moving average line for the first time in about 4
weeks. I would have liked to have seen more gusto or price action with volume as the
NASDAQ went over this important point, but that may come tomorrow when the Fed.’s
render their decision on rates which is much anticipated.

A number of stocks are looking quite nice in chart formation and the fed action tomorrow
could be the trigger mechanism that sends these stocks moving. Moving up I hope. Here
are the charts of a few leading stocks in the market today.

Most of these have growth rates that exceed 400% with some more and some less. All
are in the internet infrastructure area with most in the fiber optic sector.

1/4
Here are two charts good looking stocks with very high growth rates of over 75%. CCMP
is in the chip sector and INFY in the computer services area.

2/4
Here are a few picks of other charts that are set up to move. CHKP at $130, PDLI at
$162, ARBA at $144, CORV at $97, DIGL at $110.

I will have more for you tomorrow.

3/4
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 August 2000

Hello out there stock fans. The Fed did exactly what the market had thought it would do
and left rates unchanged with a bias towards tightening if inflation shows up at anytime in
the near future. Stocks that were already in rally mode like CIEN and JNPR tacked on a
few more points after the news with both of these leading optic stocks closing into new
highs on strong volume. Here is a chart of JNPR showing its nice break out from last
nights chart that I showed you.

Many other leading stocks that were rallying good during the day like SCMR, AMCC and
BRCM gave back some of their gains, but held ground none the less and all of these
stocks maintain excellent looking chart patterns suggesting higher highs are in the near
future.

Here are some charts of some potential movers in the near future. In could take a few
days before they get going, but soon I think they will.

Interwoven Inc. (IWOV)

This company makes software for the internet and chart suggest higher highs are very
close by Revenues are up over 730% to $24 million for the last quarter and the company

1/3
is close to profitability., There is only 26 million shares that float so this stock could move
well in time.

This stock I had here a week ago with a very tight and compact cup and handle formation
and the stock tried to run up but failed and I believe this was due to the cup being to tight
and not enough time being put in on the base. However this stock is very strong and the
stock may have put in a shake out and is back. Time maybe near for a legitimate move if
we can get a clean break on massive volume the next time this stock gets going. This is
my old writing on the this chart showing the prior attempt. The buy point is about the
same.

2/3
Here are some more picks for the active chart reader with my buy points. MU at $90,
RFMD at $79, AMCC at $179, CREE at $135, VRTX at $141, CMRC at $53, and MVSN
at $96.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 August 2000

Hello out there stock fans. A very good day on the NASDAQ today with many groups
participating including many old forgotten internet stocks such as CMGI, INKT and
YHOO. Also many chip stocks tacked on good gains with Qlogic (QLGC) breaking the
$100 barrier again and Broadcom (BRCM) heading for the $300 mark as both of these
continue to move out of solid basing formations.

AMCC moved ahead over $11 on good volume clearing its most recent base on good
volume. This stock was listed here last night in the chart reader section at the bottom of
this letter as are many stocks that are ready to move. This stock has been one of the big
leaders in the stock market over the past year and looks to continue this roll for this
market move as well.

The are a number of leading stocks that are ready to move with very nice charts patterns
so let’s get to them. First up is Brocade (BRCD) which just posted stellar earnings of over
500% both in earnings and in revenues. This stock is in the fiber channel market and is a
leader here. More importantly the stock continues to makes great chart patterns and act
right. I will also add 300 shares of this stock to the model portfolio as it breaks out which
could come tomorrow.

1/4
Next up is the leading internet stock that is dominating the B2B space in the internet
sector. That stock is of course Ariba (ARBA). The chart is one of the tightest and most
controlled I’ve seen in a very long time. I really wish and hope this stock can put in more
time before it goes, however in this day and age of guys like me highlighting these things
for the masses this stock may not get its full time in on the base. I would like to see
another two weeks of horizontal work before it goes, but that may not happen.

I will add 300 shares of ARBA at the break point area to the model portfolio.

2/4
Here are some picks for the active chart reader to look at with my buy points. SSTI at
27.50, PWER at $148, SCMR at $163, EXTR at $174, CFLO at $96, CREE at $135,
IMCL at $97, ITWO at $154, and SFE at $25.

Here is another potential mover and this stock is in the very hot networking area. Red
Back Network (RBAK) is ready to move out soon and here is the chart.

3/4
Remember the model portfolio which is now empty will add two stocks. ARBA and BRCD.

As usual there is no letter on Thursday so I will see you on Sunday evening.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 August 2000

Hello out there stock fans. Friday saw lackluster stock action on low volume as many
investors are on vacation. In fact this upcoming week maybe a repeat of Friday’s action
due to vacations with trading volume due to pick up after labor day weekend. Regardless
the NASDAQ continues to hang around the 200 day moving average line with short term
resistance at the 4100 area.

On Thursday we saw Brocade (BRCD) break out of the base on good volume, but closed
near its low for the day which is not great but not necessarily bad either. The next day
BRCD broke below my buy point mostly due to the false story about Emulex (EMLX) and
its earnings and CEO. Brocade is in the same area of business. In fact all stocks suffered
at the time of this hoax but all quickly recovered in short order. By the end of the day
many momentum stocks i.e. BRCM and CIEN sold off slightly as many momentum
traders we fearful of holding stocks over the weekend.

On Thursday we also saw Power-one (PWER) break out of that nice cup and handle
base that I showed you the other day and it moved into new high ground on good volume.
On Friday the stock moved up well before it too succumbed to end of the day selling by
momentum traders. This stock should be back to making new highs in short order. This
by the way is one of the best looking and tightest charts in the market today.

1/2
Also on Thursday we saw the Biotech index breakout from a nice area of consolidation
with many of the same leading Biotech’s on the move again. These include MLNM, PDLI,
HGSI, AFFX and others. After a brief rest in a few days, these stocks should be on the
move again as they will have set up with nice bases.

On Friday it was the B2B internet stocks that were on the move with Commerce One
(CMRC) starting to move out of a nice horizontal base and Purchase Pro (PPRO) doing
much of the same. As we move further into this market move, it would appear that their
will be a plenty of stocks to chose from in many sectors of the market.

Here are some stocks to look at for the active chart reader with my buy points. AVNX at
$138, BEAS at $60, CMRC at $54, CORV at $89, TIBX $116, SONS at $170, CPST at
$80.

Again a reminder for many of you, my focus stocks are JNPR, SCMR, AMCC, BRCD,
BRCM, PWER, ARBA, PMCS, EXTR and CIEN. I own all of these as I believe they are
the leading stocks in the market today and their respective groups.

I will have more for you on Monday and I think the market could see some consolidation
at this area for this week.

Daniel J. Zanger

Chartpattern.com

P.S. I have added ARBA to the model portfolio at $147 and BRCD at $217.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 August 2000

Hello out there stock fans. Few stocks were on the move today with big point gains like
last nights short term traders picks AVNX, which was up $17 , while many stocks were in
minor retreat with losses of $2 to $6.

Ciena (CIEN) continues to impress with another big point gain today on expanding
volume. The stock has had 8 out of 9 days of expanding volume as the stock has been
moving up in price. This is one of the very best looking volume charts in the market today
along with PWER. Let’s look at a chart of this big winner and see what this looks like. You
can also refer to PWER in last nights charts and you’ll see the same heavy volume as the
stock moves up in price.

You can also see a reverse of this in Sycamore Networks (SCMR), which unlike CIEN is
selling off after much better than expected earnings on heavy volume.

1/5
Another stock that looks very good on the charts and continues to move up well is a stock
I’ve had here numerous times over the past few months, P M C Sierra (PMCS). Not to
mention the numerous many times I had this stock last year before it became so well
known today. This stock has completed a fan formation and is ready to move much
higher.

2/5
Let’s look at Silicon Storage Tech. (SSTI) which is one of the best acting chip stocks and
one I had here two weeks ago at lower prices. Here is the original chart that I showed you
only downloaded to show the stock action up to today. The down arrow shows were I had
this stock highlighted here 8 days ago when the stock was at $25.

Here is a strong looking chart of a former model stock that is making good progress.
Check Point Software (CHKP) is looking very good even though its not moving up $15 a
day like the old days.

3/5
Here is a chart of strong stock just now coming out of a tight consolidation area.

Here are a few stocks for the active chart reader and trader. ADI at $97, CFLO at $94,
CHKP at $138, COBT at $52, AMD at $36, CORV at $91, CRUS at $29, ARTG at $92.

4/5
I will have more for you tomorrow.

Daniel J. Zanger

Chartpattern.com

By the way, September and May are the two lowest returning months of the year.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 August 2000

Hello out there stock fans. Another good day for NASDAQ stocks with a number of lesser
known stocks tacking on good gains, while the NASDAQ composite itself is at a near
stand still. I personally would be quite happy to see the averages go nowhere while our
favorite stocks keep moving up. In fact in the summer of 97 this happened for a few
months.

Last night chart of Check Point Software CHKP proved fruitful as this stock moved up
nicely out of the base on fair volume while tacking on $8. Sycamore Networks (SCMR)
may have put in a bottom as it traded again near record volume and closed above
yesterdays low. In the active chart section of this letter, last nights pick of Art Technology
Group (ARTG) moved up very well as it crossed the 28 day moving average line on
strong volume. Lets look at a chart of this big mover that is taking business away
Broadvision (BVSN) and you’ll see what I saw that prompted me to post this stock with its
buy point.

Here is a chart of another good mover with a nice cup and handle. When this stock wants
to it can move very well. The stock is Wireless Facilities Inc. (WFII). This company
deploys wireless telecom networks of sorts. Revenues are up for the last quarter 229% to
over $59 million while earnings were up 350% to .18. There are only about 8 million
shares that float which is why this stock can move quickly.

1/3
Power-one (PWER) continues to move strong as it moved up over $10 today on very
good volume. If this stock keeps up this type of action it will soon go parabolic. This could
yield all of us that own this stock very hefty returns in short order. AMCC is acting and
looking the same.

2/3
Today we also saw some of the B2Bs move out again. Free Market is moving well as
volume continues to expand as the stock moves up. Purchase Pro (PPRO) is on the
move too. Ariba (ARBA) is resting but should move soon as it is the leader of this group.

I say they are moving out again because I mentioned them here the other day then these
stocks went nowhere. This resting behavior however is quite normal like the Biotech’s are
doing now, but soon after stocks rest they move out again in what is known as stair step
behavior. So if they are mentioned here and then don’t move the next day its probably
because they are resting. It could pay to keep your eye them.

Here are some picks for the active chartist and trader with my technical buy points. JNIC
at $67, LWIN at $79, MLNM at $132, MVSN at $104, NENG at $33, NTRO at $80, NVDA
at $79 and PDLI at $93.

See you guys tomorrow.

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 August 2000

Hello out there stock fans. Another strong day on the NASDAQ today with last nights
highlighted sector and stocks Free Market (FMKT) and Purchase Pro (PPRO), on the
move in a big way along with Commerce One (CMRC) which was marked with a buy
point of $54 over the past couple of days in the active traders section. All of these stocks
were up over $10 each during the day with CMRC taking the volume prize as it traded
over 27 million shares or near record volume.

Also today in the B2B sector with PPRO and CMRC we saw Ariba (ARBA) make a late
day charge adding $8 as it moved up swiftly near the end of the day and finally cleared
the base resistance area at $149. One of the last and better acting B2Bs Clarus Corp.
(CLRS) moved up and out of a cup and handle pattern today on 4 times daily average as
it moved up $8.

We also saw model stock Brocade Comm. (BRCD) move up smartly as it too finally
moved out of the base and closed near it high while tacking on over $13. Looks like
model stocks ARBA and BRCD are on their way at last.

It appears that some froth has reentered the market again which I always find to be very
cash rewarding especially if you're in the right strong groups or sectors and stocks in
advance. Just wait until things really pick up and stocks start moving parabolic which
should be a month or two. Owning the leading stocks in the market that you’ll find here
should be doubling and tripling in a hurry before this market move is over with.

Before I get on to some charts let me first say that I will be expanding service here at
Chartpattern.com next week by adding some new features and some extra mailings to
highlight them.

This new service will be featuring in depth company and sector research, upcoming hot
IPOs, significant market and economic event and much more. Maya Sobolev will be in
charge of these reports and I might add, you’ll be way ahead of the curve with them as
her reports are extremely timely and her company selections are of the leaders or
potential leaders to come.

Here is a chart of a stock that is in the same business as Exodus (EXDS) Comm and has
been rumored to be a buy out target of EXDS. Earnings growth is huge as this web
hosting stuff is growing faster than the weeds in my back yard. The company is Digex Inc
and please be aware that the company is not the leader of this group nor is this sector hot
like the B2B.

1/3
Here is an updated chart of Red Back Networks (RBAK). I had this chart here the other
say showing you the buy point of its descending trend line and soon this stock will move
above it where it will be a technical buy.

2/3
Here are some picks for the active chartist and short term trader. MUSE at $170, VRTX at
$81, WEBX at $41, CFLO at $106, CORR at $55, CRA at $101, HGSI at $160, CREE at
$143, SYXI at $42, TSYS at $29, STEM at $10. As you can see the list is getting big
which is due to a very positive market environment.

This weekend is a holiday here in the states so the market will be closed on Monday.
Therefore no letter on Sunday or Monday. I will be back on Tuesday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 September 2000

Hello out there stock fans. A very good month of August has come and gone and now
were into one of the lowest returning months of the year September. The NASDAQ so far
is living up to this billing with a nice gap down today and a close on its low, leaving the
NASDAQ with a potential double top. We also have a rising trend line to contend with
which is negitive. Also many leading sectors like the Biotech’s and chips seem to be
coming down in price after good set ups of their base formations.

On a more positive note we have rotation in a very big way into many former high flying
internet stocks like Commerce One (CMRC) and Free Market (FMKT). In fact the entire
B2B sector is super strong with all of the stocks in this group seeing extreme percent
volume change while the stocks are advancing in price. This shows heavy accumulation
is taking place in this sector. This sector could in fact be a leading group in the market
come fall or winter.

Here are some other stocks in this group. Purchase Pro (PPRO), VerticalNet, (VERT)
Ventro (VNTR), Clarus Corp. (CLRS) and hard to figure out i2 Technologies (ITWO). Also
many older internet stocks are on the move again like AMZN, INKT, INSP, SIFY, VRSN
and YHOO.

Here is a chart of the Goldman Sachs internet index which I haven’t shown here in a long
time. It shows good horizontal basing action with this index ready to break out after a long
rest.

1/7
Here is a chart of the NASDAQ and you’ll see what I’m taking about on the double top
and the rising trend line.

2/7
Here are some charts which is more of an update of some stocks that I’ve listed here over
the past few weeks. Three of four stocks are looking and acting right and should be
making much higher highs soon which is why the are listed here.

3/7
Tonight kicks off the start of our in depth review of selected strong or potentially strong
stocks. First up is Avanex (AVNX)

Avanex Corp (AVNX)

4/7
Market Cap of $10.2 Billion, Shares Outstanding 62.4 Mil, 52 wk high of $273.50. Last Q
revenue $19.3 Mil, up 84% from previous Q, up 3688% from year ago.
===============================================================

It was a revolutionary breakthrough when industrial fiber was invented and when it was
learned that one tiny single strand of optical fiber could carry information faster and more
effectively than a copper wire. Later, a technology called WDM (Wave Division
Multiplexing) was invented; it could accommodate two independent beams of light in a
single strand of fiber. That doubled the bandwidth! Then came along DWDM (Dense
Wavelength Division Multiplexing). This technology allowed using one fiber for 8 or more
independent light wavelengths. The process of merging separate wavelengths of data is
called multiplexing and separating them demultiplexing. Avanex claims they can get as
many channels as necessary. That’s impressive!

SO WHO IS AVANEX?

Headed by a visionary of the optical world Simon Cao and backed by the influential VCs
such as Sequoia Capital and Crosspoint Venture Partners, this key DWDM player was a
long awaited IPO in February 2000. The company manufactures optical components and
modules and sells its products to the established players such MCI WorldCom, Nortel
Networks and Hitachi. Avanex’s competitors include optical giants such as JDS Uniphase
(JDSU), Corning (GLW) Lucent (LU), Nortel Networks (NT), and the little less known
players like New Focus (NUFO). The market for terrestrial optical components is growing
fast and is estimated to rise from $1.4 billion in 1999 to the range between $8.2 and $15
billion in 2003. Things are going great for Avanex too – the company has significantly
expanded its production capacity to satisfy the demand and has increased its workforce
by twenty times in less then 18 months.

DEVELOPMENTS AHEAD

Currently, most of the money spent in telecommunications is directed towards buying

gear that supports the carriers’ traditional infrastructure known as SONET. The
deployment of DWDM equipment, which accommodates dramatic increases in
bandwidth, began about three years ago in the higher level of the telecommunications
hierarchy. This level is called the long hall because it deals with greater distances
requiring fewer units. For the customer, the long haul is where the payoff of the DWDM
equipment occurs faster. With time, the deployment will move down to the lower levels,
into the Metropolitan Area Networks (MANs). Mass deployment of DWDM in MAN will
happen only after the technology becomes significantly cheaper.

Players in DWDM technology will have to increase the automation of their manufacturing
to make the process cheaper, faster and in volumes. In other words, investors want to
see Avanex move its production strategy more towards a commodity based company at
the same time continuing developments of new breakthrough products.

5/7
WHY AVANEX?

The company is the fastest growing in DWDM field (84% in sequential revenue growth).

Avanex offers leading-edge products with unique characteristics ahead of competition.

The company is constantly expanding its product line to allow them to appeal to a wider
customer base.

Avanex is entering into the MAN and Access equipment markets, the fastest growing
markets in the optical network area. Avanex is doing it together with Sycamore Networks
(SCMR), the bellwether in the next-generation of broadband solutions.

Here is the latest chart of AVNX. As you know I listed this stock here with a buy point of
about $140 the other day and I was a buyer of this stock on that day.

Due to the market actions today there are short term picks. I would suggest setting rising
stops on your stocks just in case your stocks move lower.

I will have more for you tomorrow and remember just because a stock may have great
growth potential doesn’t mean it can’t move lower. Keep those stops in at all times and
this would include AVNX.

See you folks tomorrow.

Daniel J. Zanger

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 September 2000

Hello out there stock fans. A mere double top formation on the NASDAQ and the crowd
goes nuts selling stock like there’s no tomorrow. This selling forced the NASDAQ to break
that little rising trend line in last night’s letter, which in turn forced more selling. So much
so that the NASDAQ now sits atop it’s 28 day moving average line and just a few more
hairs above the 200-day moving average line. A break of one or both of these lines is
considered negative.

Not a single group was spared from the hemorrhaging that took place today. Biotechs,
Networkers, Fiber Optics and Internets all took it on the chin with $4 to $16 loses. We
even had some leading stocks breaking key support levels like last nights PMCS. For
those of you who like to go short remember, if a stock breaks a trend line like PMCS did
today at $229, this is the time I would consider shorting stocks. Remember the trend line
is your friend either way.

No telling how far we go down before support comes in but my guess is maybe around
the 3800 area or so +/-. Who knows maybe the 28-day moving average line at the 4000
level will hold. Generally after such a big move down on the NASDAQ we find the
NASDAQ headed lower over the course of the next few weeks even though there should
be some good reversal days which could come as early as mid day tomorrow.

It appears that the two lone portfolio stocks maybe running out of gas and therefore I will
set stops as follows. ARBA at $150 and BRCD at $206. $206 for BRCD is the 28 day
moving average line and $150 on ARBA is a small rising trend line.

Here is a chart of the NASDAQ updated for today.

1/3
Again due to market conditions there are no chart picks for today. Soon this will change
after a few down days when we should also get some charts to look at as well.
Remember earnings are due out in 4 to 5 weeks on many stocks so maybe we can get
some basing action in just in time for earnings.

Tomorrow Thursday there will be a special letter that we will be sending out with a general
overview of the up and coming fuel cell industry. Tuesday of following week we will be
highlighting the hot new issue FuelCell Energy Inc. (FCEL). We will also be listing all of
the stocks in this exciting group for you to track and follow.

I will be back on Sunday evening.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 September 2000

Hello out there stock fans. The NASDAQ staged an impressive rally on Thursday after the
NASDAQ held support of the 28 day moving average line at the 4000 area on
Wednesday. The NASDAQ held firm for most of the day on Friday with another retest of
the 28 day moving average line by mid day. The supportive 28 day held fine until late in
the day when leading networking stocks caved in during the finial hour and a half of the
day.

Volume was very heavy during the last hour and a half when the sell off ensued and the
NASDQ penetrated support levels. The fact the volume accelerated just when it broke
support is another indication of further selling to come. The NASDAQ closed once again
on the low of the day and this time below technical support areas of the 28 day and 200
day moving

We are fast approaching another tough area that could help send stocks lower and that is
earnings warnings, which will be coming out over the next 4 weeks. When the market
gets in sell off mode any mention of slower than expected sales or weaker numbers from
tech stocks would more likely than not, send an entire group of stocks lower.

It seems the cards are stacked against holding stocks in long position right now, therefor I
will sell the two model stocks, ARBA and BRCD as of Monday morning and go to an all
cash position.

This market is one of which stocks run fast and furious for about 3 weeks before the party
ends. Hopefully in the late fall and early winter things get on track again with more normal
stock moves that last 12 weeks.

Let’s take a look at the NASDAQ and a very negative looking chart as of this past Friday.

1/4
On a more positive note the utility index spiked up into new highs on Friday which should
be somewhat supportive of the stock market and help cushion the blow that stocks will
take. Also the B2B stocks held up very well on Friday, as did the Biotech’s. I

It was the networking stocks that go hit the hardest with the likes of Juniper Networks
(JNPR) and Ciena (CIEN) taking 15+ points hits followed be some telecom chip stocks
and fiber optic stocks. All of the leading stocks are breaking down and it’s possible that
Power-one (PWER) could move lower as well.

Should the market stay in a bad mood then here are some stocks to look at that maybe
ready to move lower in price. BRCM would be a short in my book as it breaks a rising
trend line at $225, CELG at $63, and FLSH at $72.

Here are a few charts of some stocks ready to move lower in my opinion.

2/4
3/4
Remember ARBA and BRCM will be sold on Monday. Also my focus stocks of AMCC,
CIEN, JNPR and the rest look like they are going lower.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 September 2000

Hello out there stock fans. A very nice and almost convincing rally early today up until the
NASDAQ hit prior support which as you know now becomes resistance. This mark today
was the 28 day moving average line that was broken last week and today stood at 4005
which is about how high the NASDAQ got today.

The NASDAQ after being down early today rallied back up to this number then the rally
fizzled. More often than not after major support is broken like is was last week we get a
number of these sucker rallies.

Most of the leading stocks of this past August rally like Juniper Networks (JNPR) and
Ciena (CIEN) were crushed some $15 each on very high volume for the second day as
fear of a slowdown in this sector has investors running for cover. You can see similar
action in bellwether, Nortel Networks (NT).

Two groups of stocks did buck the trend today and both have been spotlighted here over
the past few weeks. These two groups are the B2B’s and the fuel cell group. Fuel cell
leaders Ballard Power (BLDP) and FuelCell (FCEL) had very good outings today with
each posting solid gains of $8 and $16 respectively. The B2B’s were of course
Commeace One, Purchase Pro (PPRO) and Free Market (FMKT) all tacking on modest
gains.

At some point a rally should start of some sort as the NASDAQ has dropped heavily 4 out
of the past 5 days. Let’s look at a chart and see where we might find some support.

1/3
Right now for me its far too scary to own stocks in long position and even though these
aforementioned stocks were making progress. You just never know when things can turn
on you like so many have over the past few days.

Here are some potential stocks that might want to lower in price over the next few days.

2/3
ARBA and BRCD were moved out of the model portfolio today. ARBA at $153 and BRCD
at $214. This puts us in an all cash stance right now.

Here are a few other stocks that might want to lower in price tomorrow. NTAP at $110 and
SANM at $102 just to name a few.

I will see you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 September 2000

Hello out there stock fans. More of the same today with the usual selling spree in the last
2 hours of the day. You would think the public would be on to this happening at the same
predictable time of day every time the NASDAQ trades below its 200 day. But year after
year it's the same routine over and over again.

Today it was the fuel cell stocks that caught fire and one of last weeks highlighted stock in
our in depth research report Fuel Cell Technology took off and ran some $26 during the
day. Other stocks in this group like Ballard Power (BLDP) and (HPOW) moved up rather
sharply too. HPOW is up almost 45% since our report and FCEL was trading at $128 on
the day of the report and today hit a high of $188. I did say our reports would be timely.

Many other tech stocks weren't so fortunate with stocks like Broadcom (BRCM) finally
caving in after violating support, which I had for you in the charts two days ago. It was
down as much as $9 today before moving up at the end of the day to closes down just $6.

Even the very strong B2Bs caved in at the end of the day with Purchase Pro (PPRO) and
Commerce One (CMRC) getting crunched for $6 on reduced volume. There seems to be
no safe place to hide except three or four stocks and they could turn at anytime of course.

I can assure you folks that when the NASDQ breaks support after a decent move up,
holding stocks of any kind is very risky business. I have never made a dime owning
stocks long when the NASDAQ breaks support. Never be afraid to jettison stocks is my
opinion, You can always buy them back later when the coast is clear.

The only time I've made money after the market has broken support is when I'm 100%
short. Believe me, shorting stocks is risky too. It takes years of practice and patience for
shorts to pay off.

Let's take a look at the NASDAQ again and see if it might be ready to give us a bounce. I
think we might be close to one. Support on the NASDAQ is at 3774 and if we can get to
this point tomorrow, I think we should be able to get a fair bounce of some sort.

1/4
I mentioned last week we would have a write up on FuelCell Energy (FCEL) and here it
is.

FUELCELL ENERGY Inc - NEW MARKET FAVORITE

FuelCell Energy Inc, (FCEL)

Market Cap of $1.3 Bil, Shares Outstanding 7.68Mil, 52 wk high of $188.69. Last Q
revenue of $4.1Mil, down 20% from previous Q, down 7% from a year ago.
===============================================================

Since our latest report on fuel cell energy sector, the situation has escalated. After the
OPEC meeting, the oil prices have refused to fall. Some officials at the meeting said
further increases in oil production may become more difficult. One of the reasons for this
may be that the oil producing nations do not have enough oil to last for more than three
decades. As a result, investors are bidding up the stocks that focus on alternative
energies such as fuel cell technology.

Companies including FuelCell Energy (FCEL), Ballard Power Systems (BLDP), and Plug
Power (PLUG) are currently working on new commercially viable designs of their fuel cell
products.

THE COMPANY

2/4
FuelCell Energy, the topic of today's discussion, has one of the most exciting
technologies, stationary fuel cell power plants. These 250 kW - 3 mW plants have
efficiency between 50-55%, this is much higher than the standard 30-40% turbine
generators. They can be installed near a large building, or a small town for a reliable,
clean, and safe energy output. FCEL is also working on an ultra-efficient Direct Fuel
Cell/Turbine plant that will be 75-85% efficient. With this technology, FCEL hopes to
produce cheap electricity costing from 4 to 5 cents/kW/hour.

Legislatures in about a dozen of states have set aside funding for renewable energy.
Interestingly enough, fuel cell technology falls into a renewable energy category because
of its efficient and pollution free characteristics. In fact, most of FCEL's last quarter
revenues stemmed from local, state, and federal governments. FCEL has also built a
valuable list of clients including Daimler Chrysler, General Dynamic, and Marubeni.

FuelCell is confident that the demand for its products will continue to rise. The
management has recently announced that the company will expand its yearly production
capacity to 50mW in mid 2001 from just 5mW capacity today. By 2004, the management
conservatively estimates that the company will be able to produce units with a combined
capacity of 400mW. From reading these numbers, the company's sales may increase by
as much as 80 times. If so, the stock performance should be impressive too.

MARKET OVERVIEW

The stock market has appreciated the efforts to build commercial versions of fuel cells
and both Ballard Power and Plug Power enjoy relatively high valuations and have
price/sales ratios of 457 and 142 respectively. Ballard Power has largely taken a niche in
the fuel cell market for cars while Plug Power is targeting the household market and the
power back-up market. PLUG's dream is that in the future every household will have its
own small power plant, just like every household has a water heater. FCEL wants to
produce large-scale power plants and it is still relatively undervalued with a p/s ratio of 75.

DEVELOPMENTS AHEAD

Recent research has indicated that there will be a fast growing demand for small to mid-
sized power generators. FuelCell Energy is perfectly positioned to take advantage of this
trend. The company' main products include 250kW and 1.5mW power plants, as well as,
Direct Fuel Cell/Turbine project. Positive news regarding product testing results and new
contracts with the private and international companies should lift the stock significantly.

Direct competition in the fuel cell market is limited. Positive announcements from other
fuel cell pure plays will be uplift for the whole sector.

I will have more tomorrow stock fans.

Daniel J. Zanger

3/4
Chartpattern.com

Research Analysis by

MAYA SOBOLEV at

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 September 2000

Hello out there stock fans. The NASDAQ opened with a nice gap down today and
proceeded to rally from there. Today’s down opening put the NASDAQ very near our
rising support line, which is probably what triggered our rally today. By the end of the day
the NASDAQ closed on its high of the day and tomorrow we need to see follow though or
we could reverse easily.

Also worthy of noting is that there was very little selling during the last 2 hours of the day
but instead there was heavy buying in selected issues. To be sure some of this was short
covering before the PPI and jobs number due out tomorrow.

Many of the telecom networking stocks like CIEN and JNPR were in snap back mode as
was EXTR and CHKP. Many of the alternative energy stocks were powering ahead into
new highs with stocks like APWR and ACPW moving out of consolidation areas on
volume. Fuel cell stocks could very well be the next hot sector should oil prices stay high.

For those of you that would like to download a list of stocks for this emerging fuel cell
group here is a list of tick symbols. EFCX, APWR, ACPW, CTAL, PRBL, CTAL, SATC,
IMCO, IDA, DCH, MDTL, ALTI, GLE, ENER, MCEL, PLUG, CPST, HPOW, BLDP, AVA
and red hot FCEL.

To me this sell off seems very tame compared to many of the others we’ve had over the
past 6 months which implies to me we may have seen the worst of the sell off. Of course
we’ll continue to have many shocks in the market, but as long as the rising trend line
holds we may trend up over the next few weeks. Remember stock fans, on a historical
basis 70% of the money made in the stock market is made from October through April.
Hey October is next month!

Tomorrow I will add i2 Technologies (ITWO) to the model portfolio with 200 shares near
the open. Today it closed at $172 and the stock acts very well and is close to breaking out
of a small consolidation area. Here is the chart of it.

1/3
Here is a chart of the NASDAQ to see the bounce off support.

Here are some stocks that look like they may want move tomorrow. CFLO at $116, CORR
at $59, EMLX at $97 and NEWP at $154. A few stocks of interest are MANU and AVNX.

2/3
Give a few of the leading stocks like AMCC, JNPR, CIEN, PMCS, CMRC and ARBA a
few more days and some really nice chart patterns to trade from will have set up nicely. In
fact they should be ready for Sunday’s letter.

I will see you then.

Daniel J. Zanger

Chartpattern.com

Please check out this link to my upcoming seminar in Miami

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 September 2000

Hello out there stock fans. Rising oil prices, sinking bond prices, a poor earnings report
from Oracle and triple witching options expirations all combined to produce a hard
NASDAQ and NYSE sell off on Friday bringing the NASDAQ back to support of the rising
trend line at the 3800 area.

A break of this trend line could with no guarantee bring the NASDAQ down back to the
last area of support, which is around the 3600 to 3650 area. It would be best if the
NASDAQ could hold this trend line, as this would give the NASDAQ rising bottoms or
higher lows which would best. Higher lows here would give us a rising wedge formation
that could take us back up to the 4200 area by October.

This is best case scenario to be sure but may not happen as many of the big cap leaders
are breaking down like SUNW, ORCL and JDSU. Since these stocks are heavily index
weighted a break down in these stocks could cause the NASDAQ to break the trend line
with ease.

However like so many times in the past after the NASDAQ bottoms the leaders will be
sure to take off and run and you’d better be ready to find and follow them if you want to
make the best money in the market.

Right now I see some of the fiber networkers doing well like CIEN and JNPR while a few
of the B2B internets are performing well like CMRC, ITWO and PPRO. Fuel cell stocks
are the best acting group with FCEL, ENER, HPOW and MCEL moving ahead the best.
In the biotech arena its PDLI and IMCL breaking out of bases during the week and
posting new move highs.

It’s these stocks here and maybe dozen others that need to be looked at on a daily basis
for when the NASDAQ finally bottoms, these stocks are sure to move out quickly and
make the largest gains in the market. In fact FCEL has tacked on $50 during this market
break pre-split.

Here are some charts of the NASDAQ and some potential leading stocks when the
market turns.

1/4
Extreme Networks (EXTR)

2/4
This stocks really needs more time to set up and go horizontal for a least a week or more
for it to fully complete its base. When it does I will add it to the model portfolio. For the last
quarter revenues were up over 142%. There is only a little over 42 million shares
outstanding so this stock could move up easily. This company provides switching
solutions for enterprise networks.

Here are some stocks that are on the move and might move higher this week. Most are
not leader types but the charts say they may move up. RETK at $43, IVGN at $62, IWOV
at $98, JNPR at $205, NIKU at $26, RBAK at $141, GILD at $104, IDPH at $148, LBRT at
$34 and WFII at $81,

On Thursday I added ITWO to the model portfolio at $174 (200 shares) which is where it
traded early in the morning and where I bought some too. No stops as of yet folks as the
stock moves well on up days and hangs tough on down days.

I will have more tomorrow stock fans.

Daniel J. Zanger

Chartpattern.com

P.S. I would like to note that a break of the trend line may not make the NASDAQ go back
down to the 3650 as the NASDAQ may double bottom in this area which means that the
line would be broken but no extreme selling would occur.

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 September 2000

Hello out there stock fans. A very rough day today with most leading groups heading
lower with some groups having technical break downs. Groups heading lower today
include financials, brokerages, biotech’s, Internets, fiber optics, and telecomm’ just to
name a few. Even the very strong oil sector got a little slippery and lost ground.

Negative too is that the NASDAQ broke support of the three month rising trend line which
in turn causes more stocks to be sold. The NASDAQ got as low as 3702 today which is
only 80 points or so above a good support line which is where the NASDAQ found
support back in July. I do think we’ll get to this support area soon, as there was very little
buying interest in stocks today at today’s discounted prices.

A double whammy today too is that interests rates were on the rise in the long bond and
oil spiked up to about $37 a barrel. These two items suggest that the economy is strong
now and should remain strong for sometime. That’s the good news, the bad news is
traders aren’t happy about it now and are selling our favorite stocks.

Let’s take a look at some index charts to get a feel for what some of the leading sectors
might be up to in the coming weeks. This should also tell us something about where the
NASDAQ might be headed.

1/5
Let’s look at the Biotech index (BTK) which is one of the leading indexes. Then we can
look at the SOX index and then the brokerage index (XBD).

2/5
It would appear that we so many of the leading indexes breaking support today that the
NASDAQ and the NYSE will probably have some time to go before another meaningful
move would be at hand. In fact this suggests to me we have more downside potential
than first thought.

Many stocks have already moved down sharply and the market itself is close to being
very oversold. This means there are no stocks worth shorting right now until a snap back
comes around. Also there are only a few stocks worth looking at for longs until things
improve. Those longs are MUSE which broke out today of a descending trend line and
big winner from last night’s charts NTAP. A few others that could go either way like INKT,
VRSN and EBAY which are old guard internet stocks are acting well recently.

Technical speaking a snap back to the broken descending trend line of today at 3790
would be very normal action and could come at anytime. When the NASDAQ does get
back to this area this would be the time to consider shorts. Until then please keep your
stops in place and never believe in stocks, only your stops.

Here are some charts of some of the leading stocks in the market today. These charts
suggest lower lows to come on these big winners.

3/5
See you tomorrow

Daniel J. Zanger

Chartpattern.com

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 September 2000

Hello out there stock fans. A powerful reversal rally from deeply oversold levels ensued
today putting the NASDAQ within striking distance of its descending trend line and
erasing all of yesterday loses.

Today’s rally started out slow but gained momentum as the day progressed. All of the
leading stocks in the market today participated with PMCS and JNPR posting large gains
of $22 and $17 respectively. Many stocks posted large enough gains to either create
better and healthier charts like Varisign (VRSN) or to break out of bases like Extreme
Networks (EXTR) and AMCC.

There are many stocks to look at tonight so let’s get to the charts. First let’s look at the
NASDAQ and see what it looks like and then on to some stocks that look like they are
ready to move out.

1/6
2/6
3/6
Here are some charts that look good for the active chart reader and day trader with my
buy points. ARTG at $94, CIEN at $111, CMRC at $70, EMLX at $102, XTND at $65.

Model stock ITWO, had a big day today popping $12 to close into new move highs at
$182. Tomorrow I will add 200 shares of EXTR in the $102 to $107 area to the model
portfolio.

Tonight we have an Infocus report on Juniper Networks JNPR.

A HIGH-FLYING IPO YESTERDAY - $70 BILLION NASDAQ 100 COMPANY TODAY

Juniper Networks (JNPR).

Market Cap of $66 Bil, Shares Outstanding 314.1 Mil, 52 wk high of $222.50. Last Q
revenue $113 mil, up 77% from previous Q, up 544% from year ago.
===============================================================

When Juniper first started trading just a little over a year ago in June 1999, it was a highly
anticipated IPO. Since then the company has grown into a 70 billion-dollar valuation and
was just recently added to one of the prestigious stock indices, Nasdaq 100. Its revenues
are projected to exceed $1 billion calendar year 2001. Juniper was able to get there
thanks to its outstanding products.

JUNIPER'S POSITION AND PRODUCTS

4/6
Juniper Networks (JNPR) provides Internet backbone routers which service providers use
to run their networks. A router is a device that forwards packets of information between
networks and directs traffic. It can connect to any number of networks. Usually the word
"router" or "switch" is associated with Cisco Systems (CSCO), the king of the market.
Cisco is dominating the IP core routing market with 74%. Juniper, however, has been
aggressively taking away Cisco's share and currently holds 23.6%, which represents a
gain of 6.3% in June quarter over March quarter (according to The Dell'Oro Group).

The remaining 2.4% of the market is shared by companies such as Avici Systems (AVCI),
Foundry Networks (FDRY), and Nortel Networks (NT).

Juniper's first products were M20 and M40 IP routers which support all levels of networks
(OC3- C48) except for the highest in the hierarchy (OC192, 10 Gbit/s data rate). These
products, especially the M40, contribute to the biggest part of the company's revenues. In
the spring of this year Juniper began shipments of its most advanced router, M160 for
OC192 overtaking Cisco. Cisco is planning to introduce its competing router by winter
2000. Carriers who have waited for Cisco’s product are now buying from Juniper.
MetroMedia Fiber Networks (MFNX), the world’s leader in optical network, who builds the
metropolitan networks, bought 170 units of m160 routers. Juniper has a long list of clients
including Worldcom (UUNet division), Cable and Wireless, Frontier Global Center Inc.,
Verio Inc., and others.

STOCK'S PROSPECTIVE

Much of the good news may be factored into the price of the stock. The recent addition of
the company into the Nasdaq 100 and its successful results in the battle for the market
share with Cisco. Juniper also struck a 3-year resale pact with Nortel Networks, a move
against Cisco. Nortel brings strong relationships with service providers in Europe and
Asia and should help Juniper sell its equipment to more traditional carriers in the United
States.

The valuations are high, but may be explained by Juniper's strong position in one the
fastest growing markets - IP core routing. This market is expected to grow from $2 billion
in 2000 to $16 billion in 2003 (according JP Morgan). On top of the exploding market,
Juniper is one of the fastest growing companies of its size, continuing to grow with hardly
any acquisitions. The exploding market and growing market share makes a double
impact!

FUTURE DEVELOPMENTS

The stock should keep performing well if the company can sustain or even improve its
sequential growth. To do this, the following things need to happen:

1. The company will need to expand its existing line of products to compete with the new
advanced products of the emerging players such as Avici Systems (AVCI).

5/6
2. Juniper will need to continue stealing business from Cisco.

3. The management might need to consider diversification of their business through

entering new fast growing markets, i.e. become "mini-CSCO". And with such richly valued
stock price, acquisitions should be easy to make.

JUST IN TIME

Just today the company has made a step towards fulfilling some of the requirements
described above. Juniper began shipments of two edge routers, the M5 and M10. The
company did not previously offer products for the edge market. The edge is where the
enterprise connections intersect with the public Net. These products are smaller and
more advanced in comparison with the competition. The news shows the company is
moving down to the lower-end of the market as well as expanding its product offerings.
The news gave a boost not only to JNPR but also other companies that compete with
Cisco Systems such as Extreme Networks (EXTR), Redback Networks (RBAK),
Broadcom (BRCM) and others.

Further moves like this might reward Juniper with an addition to the S&P 500 in the
future.

I will see you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Research by

MAYA SOBOLEV at

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 September 2000

Hello out there stock fans. A heavy sell off on the NYSE today should come as no
surprise as it has been under liquidation for the past two weeks after it too had a double
top. Earnings warnings from Sprint PCS and a weak Euro is what the press focused as
the main reason along with another spike in oil for the October contract even though
some oil stocks are rolling over as is the oil index the XOI.

All this negative news and Dow sell off only suppressed the eventual outcome of today’s
trading action on the NASDAQ. As soon as bottom was found on the DJIA leading
NASDAQ stocks resumed their surge in new high territory with the NASDAQ itself closing
above yesterday’s close to complete follow through of yesterdays move on heavy volume.
The NASDAQ now seems to be rounding out a bottom now.

Chips stocks, Some Biotech’s like PDLI, B2B internet stocks and many fiber optic and
networking stocks were cooking on gas as many of these extended gains from yesterday.
Many old guard internet stocks like eBAY, Inktomi and Verisign which I mentioned here
the other day as looking good moved well as all of these are moving when they should
and making higher highs.

1/4
Red Back Networks (RBAK) cleared technical resistance today and is moving very well
along with our new model stock Extreme Networks (EXTR) which had nearly 3 million
shares traded which is over its daily average in just the first hour of trading. The stock
seems to be in big demand as it finished the day up $6 on over twice daily double
average volume. I bought some today at $104 but it traded most of the first hour in the
$106 to $107 area, so I will put 200 shares in the model at $106.

Another stock that was moving very well today on record volume was Purchase Pro
(PPRO). The stock is in theB2B sector and had a stupendous day today. Here is a chart
of it. I also expect Commerce One (CMRC) to follow suit, as its chart is similar.

Last night chart and selection Brocade (BRCD) wasted no time in breaking though that
trend line and vaulting over $15 at one time into new highs before pulling back to close
just under new highs at $228 on very good volume.

2/4
Last week Network Appliance (NTAP) had a nice base and the stock broke though its
trend line on big volume. Today the stock extended its gains from its buy point at $120 to
new highs of $142. The stock is at the upper trading band and needs a rest but should
continue higher in time.

3/4
A few stocks of interest to me today base on movement and the charts are IWOV, HAND
and PALM. Here are some stocks that might be ready to move tomorrow or soon. CPTH
at $74, FNSR at $46, IMGN at $30 and ARTG at $98.

Tomorrow we will have a report on Brocade (BRCD) and Network Appliance (NTAP).

I’ll be back on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 September 2000

Hello out there stock fans. Chip giant Intel (INTC) reported after the bell on Thursday that
it would not meet revenue expectations due the weak Euro and slowing sales in Europe.
This caused many tech stocks to drop anywhere from $4 to $16 in light after hours trading
on Instinet. These few scared folks that sold on Thursday in after hours trading were
rewarded with loses after seeing their stocks soar to new highs in heavy trading on
Friday.
Many stocks closed the day Friday up $15 to $20 into new high territory on heavy volume
with most of the leading stocks closing on their highs of the day which suggest we should
see follow through on Monday for at least the first part of the day.

Stocks like Brocade (BRCD) moved up sharply early on and finished the day up over $20
on record volume to $248. Model stock Extreme Networks (EXTR) had a good old fashion
chartpattern like move like we used to see here over the past two years. It rocketed from
a low of the day at $98, all the way up to a high and eventual close at $124 on less than
extreme volume but heavy none the less.

Ariba (ARBA) the leading B2B stock broke out of that descending trend line I had for you
the other day and tack on $16 to clear the base formation. Purchase Pro (PPRO)
exploded near the end of the day along with many others and closed far outside the
upper trading band at $89. All four of the above stocks were at your fingertips just the
other day at big discounts to today’s prices. Don’t call ghostbusters for stock picks in
advance of their move friends call Chartpattern.com.

There are so many stocks ready to move even higher this upcoming week I think it best to
get on to the charts and probable big movers right away. All of these stocks listed here
are in the leading groups in the stock market today. This would be the Fiber Optic
Networks, Optical components, and Data storage like Brocade (BRCD) and Network
Appliance (NTAP) andB2B.

All of the stocks listed here have growth rates of at least 200% per year in both earnings
and revenues.

1/7
2/7
3/7
4/7
Here is a chart of the NASDAQ and what do you know, we finial got down to the lower
support bar I had for you the other day just above 3600.

5/7
Here are some stocks with good chartpatterns that are ready to move. The number is my
technical buy point.

NUAN at $128, ANEN at $127, AMCC at $199, EVLV at $27, FMKT at $76, FNSR at $46,
GLW at $321, HGSI at $176, Model stock ITWO at $187, LBRT at $34, NENG at $42,
NUFO at $93, NYFX at $40, NTIQ at $62.

Let’s take a look at a former high flyer that just crashed and see the where the exit point
was. Which is why you need a chart program like the one I use here. It may be in your
best interest to get one. Having that trend line set before the break and getting out early
would have paid for the program many times over.

Tomorrow I will add 300 shares of Commerce One (CMRC) near the $76 area, which may
or may not be at the open. I will not pay over $80 for this stock tomorrow. I will also add
tomorrow 100 shares of JNPR at the $225 area and no more than $230.

I will see you folks tomorrow.

Daniel J. Zanger
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 September 2000

Hello out there stock fans. Good early morning follow through to the upside like I said
yesterday we would probably would get today. This was followed by end of the day profit
taking dropping many stocks that were up $5 to $14 to small loses even though many
stocks finished positive by $3 to $11.

A mixed day to be sure with chip stocks taking another beating with no end in sight. In
fact the SOX index is now sitting on support once again and another strong down day like
today could sink this index and related stocks under a tough line of support which could
cause some havoc on the rest of the tech sector. On a more positive note this index is
short term oversold right now which cold help support it.

Many stocks were off and running big from last nights charts like CIEN, JNPR, MUSE and
EMLX, while others like Broadcom (BRCM) are still moving off their buy point I had for
you last week. Had it not been for today’s poor close most of these stocks would have
seen 10 to 15 point gains. All leading stocks with their charts are still intact so I suspect
soon that we should recoup today’s give back and press onwards to new highs.

Today I added 300 shares of Commerce One (CMRC) at $76 and 100 shares of Juniper
Networks (JNPR) at $228 to the model portfolio. CMRC got off to a slow start at $76 but
finished strong on very heavy volume of over 22 million shares to close the day at almost

1/2
$81. JNPR gapped above my $230 target and stayed above it all day until the end of the
day when traded down to a low of $224. JNPR closed the day at about $228 on good
volume.

The model portfolio now has four stocks, which are ITWO, EXTR, CMRC and JNPR.

Most stocks need more time to set up again before I have any meaningful stocks to look
at for the active trader. I still think AMCC, JNPR, CIEN, PMCS, RBAK, CMRC, MUSE,
BRCD, VRSN, EXTR are the main stocks to focus in on and trade or own right now. A few
stocks that are acting very well and in time maybe good stocks to own or to trade are
HAND, INRG, GSPN and PHCM.

I’ll see you tomorrow.

Daniel J. Zanger
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 September 2000

Hello out there stock fans. Eastman Kodak (EK) a member of the DJIA warns of a
revenue shortfall and traders discount the stock around $14 helping the DJIA drop 175
points and spilling negative sentiment to the TECH heavy NASDAQ. This sent the
NASDAQ down about 52 points causing it to close at its lowest level in two months.

Still most leading stocks stayed very close to their all time new highs set earlier this week
and last week. Support areas are still in tack for most all of these stocks. As soon as an
up day comes around for the major averages, most of these leading stocks should
resume their advance. It appears these leaders are in refresh mode right now after a
huge market advance on Friday and early Monday.

Due to the big market advance on Friday this means that many stocks got extended from
their moving averages and bases like CIEN, JNPR and EXTR. This market is more like
the days of old and not like the days of the past two years when a stock could care less
about extension from bases and moving averages. The good news is all of these leading
stocks are still in a strong up trend noted by higher highs and higher lows and they need
to stay that way too.

After the close of regular trading today Microsoft and Commerce One (CMRC)
announced a global alliance using CMRCs B2B technology. CMRC is up $4 on strong
instinet volume.

Model stock EXTR is coming down after a huge run up of 30 points or over 30% in just a
few days of leaving its base. What we are seeing now with its 15 point slide is a natural
correction to this run up. In a week or so this stock should be making new highs. ITWO
bucked the trend and tacked on $1.50 today and JNPR did much of the same with a
$2.50 gain.

As you folks know this market is more and more bear market like except for just a dozen
or so stocks. Many stocks that have been hanging around going nowhere like ICGE and
BVSN and others, are finally breaking down under support and collapsing even further.
Even big cap leaders of the past 2 years like ORCL, CSCO, AMAT, MSFT and INTC are
making lower lows and lower highs causing the NASDAQ to move lower.

I suspect that over the next year or so many now laggards like ICGE, ISSX, KANA,
MCOM, MSTR, NTRO and maybe 300 others that were prior big movers of this monster
tulip bull of the last year, will be cut in half from today’s levels. Many won’t even be listed
on the NASDAQ any longer.

1/4
I personally would never consider owning a stock like one of these listed above. If my
stocks aren’t making headway thereby making me a return on my investment on a regular
monthly basis it certainly is not in my best interest to own these stocks any longer. New
highs almost weekly folks or out the door they go.

Well the NASDAQ is getting very oversold again and near support so I suspect a rally of
some sort maybe near. We certainly need one. Here is a chart of the NASDAQ showing
support and resistance.

No picks tonight as they are no charts that have set up with areas of consolidation.
Hopefully we’ll see some tomorrow. In the mean time here is a very informative report on
a potential mover in the alternative energy field and I have listed this stock here a number
of times recently.

THE BIG GUYS ARE BETTING ON ENERGY

Energy Conversion Devices (ENER) - Market Cap of $ 556 Mil, Shares Outstanding 15
Mil, Float 9.6 Mil, 52 wk high of $40.37. Last Q revenue $7.5 Mil, up 10.3% from previous
Q, up 21.0% from year ago.

Have you heard about Nickel Metal Hydride batteries that last longer? They have flooded
the shelves recently. About 900 million of them have been sold. They are used in cell
phones, laptops, and other portable devices. But who is to take the credit for this
invention? Someone you might never have heard of. It is Energy Conversion Devices
(ENER). The company has an enormous intellectual base and a great reputation. It is

2/4
addressing the $3 billion market for portable batteries and is now entering into a
potentially huge market for electric, hybrid, fuel cell vehicles. For the long term, it has
taken the task to make hydrogen the fuel of the 21st century.

WHY SO MUCH HYPE BEHIND HYDROGEN?

Hydrogen, the smallest atom, comprises about 90% of the whole universe. All life
indirectly derives its energy from the power of fusion reactions of hydrogen nuclei in the
stars. When hydrogen is combined with oxygen, the most abundant element in earth’s
crust, a great deal of energy is produced. The only by-product of the reaction is water.
Hydrogen is the only cleanly burning fuel. The energy harnessed from this reaction can
provide electricity for the whole humanity indefinitely.

PROBLEMS WITH HYDROGEN AS FUEL

Hydrogen is both difficult and dangerous to transport. Transportation in liquid form

requires low temperatures and high pressures. Transportation in gaseous form is
inefficient. An even bigger problem is extracting hydrogen. Our oceans are full of
hydrogen atoms but they are in a compound form. The highly reactive element is not
found on Earth in its pure form. Carbon fuels contains a lot of hydrogen but their supply is
very limited. Water contains even more hydrogen (14.3%), but in order to separate it from
the oxygen atoms (H2O), tremendous amount of energy is required, in the process called
electrolysis. The net amount of energy spent on producing hydrogen is usually more than
the net amount of energy derived from using hydrogen as a fuel. Electrolysis is at this
point uneconomical.

ENER’S SOLUTION

Energy Conversion Devices, as did many other companies and universities, took the task
of addressing both of the problems. They have had considerable success with the
problem of storage. With ENER’s technology, hydrogen may be stored in solid hydrides
under low pressure. Refueling takes a couple of minutes and hydrogen storage density is
said to be at it’s highest. This method makes hydrogen safe to transport and none is lost
to evaporation as it happens when hydrogen is transported in liquid form.

Addressing the second problem may take a joint international effort. We do not have any
illusions that one company like ENER can solve such a complex dilemma. That is why we
are glad to see that ENER is taking the safe and sound route. Along with Canon, it has
established a joint venture company called United Solar to produce energy generating
solar panels. The efficiency of these photovoltaic panels is the highest in the industry and
stands at 13%. ENER decided to apply the power harnessed from the sun to produce
hydrogen from water. There are many problems that have to be solved but the company
is rightly positioned in the growing industry and if its history, intellectual property (over a
hundred patents), and strong backing are taken into account, the future of the company is
bright.

ALLIANCES AND COMPETITION

3/4
The solutions that Energy Conversion Devices has provided for the energy industry are
extremely valuable. Its talented team of scientists sees more discoveries ahead. The
company is backed by giants such as GM, Shell, Canon, and Texaco. With GM, the
company is distributing its NiMH rechargeable batteries for electric vehicles, and fuel cell
electric vehicles. Shell Hydrogen wants to further develop and commercialize solid
hydride storage technology, while Canon and ENER are working on solar panels. The
company also developed DVD rewritable disk technology and is licensing it to major
technology companies such as Sony, Hitachi, and Toshiba. Texaco has taken 20% stake
in the company and is planning to adapt ENER’s technology to suit the needs of the
hydrogen-powered cars of the future.

The main competing companies include APWR, BLDP, EFCX, IMCO, MCEL. Energy
Conversion Devices has become a widely diversified business. Companies mentioned
above compete with ENER in different markets.

Energy Conversion Devices will be reporting its quarterly earnings on September 28.

UPDATE ON FCEL

FCEL received a BUY coverage from Lehman Bros. with a modest price target of $124.
The analyst stated that the company could be the next big player in the power generation
markets. He also cited that FCEL’s power plants will have exceed 75% efficiencies the
most efficient alternative is roughly 55%. The stock made an all time high today.

See you folks tomorrow

Daniel J. Zanger
Chartpattern.com

MAYA SOBOLEV
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 September 2000

Hello out there stock fans. Priceline.com (PCLN) issued a revenue shortfall warning and
the stock takes another discount this time down to $10 on heavy volume. This set off a
wave of selling in the already beaten down Internet sector with many big cap internet
stocks like YHOO moving down sharply in stair step fashion $12 to $90 on triple daily
average volume.

Many leading stocks gapped up at the open today only to be hit hard by traders thereby
dropping these stocks into the red within an hour. Other stocks dropped right from the
open and never looked back. The vast majority of NASDAQ stocks are getting crushed on
this 600 point NASDAQ slide while only a dozen or so stocks, mostly the ones I’ve
highlight here, are making new highs or very close to them.

Today’s NASDAQ slide put the NASDAQ back to support at the 3620 area. This came
late in the day and it was a good thing this area held. As soon as we touched this area
many leading stocks began to rally during the last 10 minutes of the day. Not a huge rally
but a fair rally none the less with only a few dozen stocks participating in the late day
come back. Not impressive to be sure, but encouraging.

A number of stocks still have very good-looking charts like Redback Networks (RBAK)
and Verisign (VSGN). VRSN rallied early today and sold off near the end of the day while
RBAK motored ahead at the end of the day closing on its high of the day. If today’s test of
3620 holds then these two stocks should move out smartly maybe as soon as tomorrow.

Here are the charts of these two strong stocks.

1/4
Model stocks held up fairly well with wild whipsaws throughout the day. JNPR broke the
trend line that I had in the charts the other day and this could make this stock suspect
going forward. CMRC gave back most of its early gains as the B2B sector was weak most
of the day. ITWO came back well after holding up most of the day and then moved quickly
lower but snapped back late in the day. EXTR held up all day with only a small dip in price

2/4
but quickly regained it to close the day positive by a hair. I will set some stops on the
model stocks just in case things get out of hand. CMRC at $70, EXTR at $102, ITWO at
$168 and JNPR at $217.

Most of the Biotech’s are holding up like HGSI, MLNM and DNA along with a dozen or so
others as are the optic networking stocks. Should this be the bottom of this market
correction here at the low 3600 area then it will be these stocks that will move higher
soonest.

Let’s take a look at the NASDAQ and see where the support line is.

No telling what’s going to happen after September is over with. Come October its
earnings season with YHOO being the first tech stocks to show its hand around the 7th of
October. The’ve already said things are slowing so it should be no surprise to see further
erosion of confidence and price in this stock and this sector.

Lets just hope the NASDAQ holds here folks otherwise things will get even tougher and
uglier. Stops are in place for model stocks and I hope you have them in place for all your
stocks as well.

I’ll see you guys on Sunday.

Daniel J Zanger
Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 October 2000

Hello out there stock fans. A very positive day for stocks on Thursday with the NASDAQ
gaining over 122 points in one of the heaviest volume days of the summer. This came
after a test of the 3620 area early in the day. This was a very positive day for a potential
turn around or potential bottom.

However after the bell on Thursday Apple Computer pre-announced an earnings shortfall.
The response was clearly not the same as it was when INTC pre-announced, until late in
the day that is when most leading issued caved in $10 to $15 on good volume thereby
dropping the NASDAQ near the lows of the day. The NASDAQ is now some 60 points
above strong support once again.

Most leading stocks are still in strong up trends while many stocks are still in trouble and
headed lower which in not news to anyone. Most of the big cap stocks, which are
generally considered safer plays, are in big trouble and are not showing any signs of a
turn around soon. In fact their charts to me are saying that these stocks are probably
headed lower. These stocks include MSFT, ORCL, SUNW, IBM, CSCO, AMAT and
JDSU.

These stocks of course are index heavy weights and this means that unless they can
reverse their chart action soon, then the NASDAQ is headed for a break of its support
probably in the near future.

Still many stocks are making progress like our model stocks of Extreme Networks
(EXTR), Commerce One (CMRC), i2 Technologies (ITWO) while Juniper Networks
(JNPR) seems to be having some troubles at this level right now. Other stocks making
progress are HGSI, DNA, PDLI, PPRO, RIMM, MCDT, MERQ, PHCM, MUSE, RBAK,
RETK, TUNE, HAND, VRSN and a host of healthcare and energy stocks.

There are a few stocks that have set up to move lower and in this market environment it
may not be a bad idea to have a few stocks in short position hanging around. Here are
two that look good and they are in the same group, the fiber optics.

1/4
This Tuesday the Fed has another FMOC meeting to debate and decide on the course of
interest rates. Should Friday’s late day sell off continue on Monday I would then be on the
look out for a possible end of the day short covering rally which would suggest a rally on
Tuesday due to the Fed’s lack of action on rates.

2/4
Should the market stay positive then here are some stocks to look at for the active chart
reader and day trader with my buy points. FNSR at $51,WEBM at $117, ALXN at $114,
ARTG at $96, BOBJ at $114, SPWX at $64, and SQNM at $43. Here is a chart of
Sycamore Networks (SCMR), which is showing a potential double bottom.

Here are some more stocks with short potential with my technical entry points. YHOO at
$90, AETH at $104, DIGL at $71, SIMG at $24, SUNW at $115, and IDTI at $89and
EPNY at $76.

I will have more for you on Monday and let’s hope the market hangs in there.

Daniel J. Zanger

Chartpattern.com

P.S. Some of my oscillator readings are close to being as deeply oversold as they have
been at major bottoms in the market. Not quite as low as the bottom during October 98,
but very low.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 October 2000

Hello out there stock fans. Stocks gapped open today and like most of the time this has
happened lately a sell off has ensued within an hour or so and today was no exception.
Except that today all leading stocks finally caved in thereby breaking down the most well
formed chart patterns which means that a meaningful correction in underway which
should last for some time to come.

The big winners today were most of the shorts that I listed here last night like EPNY down
some $17 on near record volume while SDLI dropped $16 on good volume and AETH
moved lower $11 in heavy trading.

Meanwhile the model stocks were getting checked out from the stops I listed here last
week. JNPR at $216, EXTR at $102, and ITWO at $171. ITWO broke down due to some
news about someone quitting who was the head of the sales force. This to me only
showed how bearish the market had turned so quickly. Commerce One (CMRC) is next
with a stop at $71 but why wait.

This market broke support of the 3610 area in style today and the charts of the leading
stocks say we are moving lower through earnings. This market seems poised to move
down to the 3300 to 3200 over the next two to six weeks. It seems only a move by the
Fed could reverse this.

Tomorrow the Fed’s meet for another FMOC meeting and the most likely scenario is that
they move to a more neutral stance from a bias of tightening. With the market now deeply
oversold a rally of some sort could be in order on the Fed news tomorrow, but how long it
would last is anybody’s guess.

Tonight I have a few charts of some leading stocks with inverted head and shoulders
patterns with a long standing rising trend lines awaiting to be broken. These stocks have
very high relative strength ratings so they might not go down easy. Its much easy and a
better play to short low relative strength stocks. Here they are anyway.

1/3
Here are few other stocks that may want to take an additional discount with my entry
point. TERN at $30, VERT at $30, LWIN at $59,VRTS at $138, MEDX at $104 and AKAM
at $46. Do be careful on the shorts folks, they are for real time players. Most of the time

2/3
I’m shorting as the stock pops up in price then use the weakness that comes in later in
the day to reap profits. This is most of the time and not all of the time. Remember
mornings are strong and then its downhill from there in weak markets.

We have 9 openings left for the seminar in Miami this October 14. If you are serious about
being successful in the stock market I can assure you will not want to be without the
knowledge of understanding chart patterns. If you think having a chart program is good
then advancing your ability to grasp as much as you can in as short of time as possible is
not only going to save you money, but help you make more than you ever dreamed of
when the market turns around. Less than one trade will pay for the show and your trip.

Here’s the link with the scoop if you’re interested.

Http://www.chartpattern.com/seminars/miami.gif

I’ll see you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 October 2000

Hello out there stock fans. Today the Fed’s decided that there would be no change in
interest rates and more importantly no change in its bias to tightening. This was due to
tight labor markets and high oil prices. This did not go over well with traders as the
NASADAQ was positive when the news hit and then a selling spree ensued that was
relentless to the end of the day. This dropped the NASDAQ 113 points to its lowest close
in about 4 months.

More importantly more technical damage was done to the leading stocks and groups that
will take weeks if not months to repair. This means that the NASDAQ probably has 100 to
200 more points to go on the downside before it bottoms out. With index heavyweights
like SUNW, ORCL and MSFT continuing to cave in this should be no problem. You may
remember that I did say this would happen in Sunday’s letter.

It’s quite clear to all of us now that the NASDAQ is in a bear market of the likes I’ve not
seen in a very long time. How low we eventually go is anybody’s guess but make no
mistake money and momentum is leaving tech stocks in hurry. Tech stocks could in fact
be down for 2 months to as long as 6 months. I’ve seen it before and this could very well
be the next time.

The NASDAQ had another big opening today with stocks gapping at the opening with
another heavy sell off shortly thereafter and believe me this is getting old. Can’t these
guys get another act? Anyway with today’s sell off that was heavy at the end of the day
and closes at or near the low of the day it should be another tough day tomorrow.

We are very deeply oversold as I’ve been saying so it makes me leery about listing stocks
to short, but the charts say these stocks are going lower, so I have no choice but to show
them. Again shorting is for real time players only.

1/4
Here are some stocks to consider selling or ones that I might short with my entry points.
CALP at $50, JNIC at $76, FDRY at $59, DIGL at $63, SCMR, which failed the double
bottom, at $99, MRVC at $45, and PDLI at $102.

Good thing I set stops on all the model stocks and today was no exception as CMRC got
a downgrade and broke down hard near the open. Stops we at $71 and that were it goes
out. It’s good to be in cash now with stops that were very close to our buy points.

Here is a write up on the economy and how it impacts our stocks by our in house
researcher Maya Sobolev

THE STORY OF ONE MARKET THAT LOST A FRIEND

For many months now we have seen the NASDAQ and other indices trade with no
direction or trend with a bias to the downside which has picked up lately. What we are
witnessing is neither a bear nor a bull market. Some call it a stock pickers’ market, others
a selective market; in any case, this is a very tough market environment. Most of the
investors know one of the main rules for buying stocks, which states that trend is your
friend. However, today’s market seems to lack exactly that this market lost its friend, for
now.

One of the most critical questions that investors would like to have answered today is
whether the economy is going to have a soft or hard landing. The Fed’s policy has worked
so far and we have a weakening economy just like the Fed wanted. However, there is a
fear present that if the economy slows down too much, we will end up with a hard landing.

2/4
The Fed’s main task, its number one priority, is to fight inflation. The state of the economy
is their second priority. The Fed does not care for the prosperity of the stock market. It
only worries about the market’s condition when the market goes up, becoming a possible
source of inflation. When fighting inflation, the Fed cools off the economy. By suppressing
inflation, Greenspan will damage the economy. So instead of a slowdown we will get
nothing less than a recession. For now, we still have a slowdown and the market is
waiting for the Fed to stop playing these dangerous games.

MOSTLY WATCHED ECONOMIC FACTORS TODAY

OIL PRICES.

Oil prices are also making it more difficult for companies to deliver spectacular earnings.
The worst seems to be over, although the bears are scared that the winter heating
season is still ahead of us and there will be huge demands to satisfy. But the peak for
demand comes in the fall as suppliers’ store up for the winter. The increase in oil prices
works just the same way the rate hikes do. So if the oil prices stay high, there will be no
worries about rate hikes. On the other hand, if prices fall, which would be even better; it
will lower the inflation pressures.

STRONG DOLLLAR VS. WEAK EURO and OTHER CURRENCIES

The strong dollar is responsible for the US companies’ decreased abilities to export as
well as for the huge increase in the trading deficit. The most effective way to resolve this
situation is by adding liquidity, i.e. Fed’s easing. The financial markets, it seems, are
sensing that it’s coming. Last week’s bad news from Denmark did not make a serious
negative impact on the currencies. Most currency analysts think it’s a bottom for the euro.
Who knows? But we hope so too.

UNEMPLOYMENT

This is probably the weakest spot right now. The situation does not seem to be very
promising. Demand for workers is high and the wages are slowly but surely moving
against the economy that’s weakening.

HOW TO GET OUR FRIEND BACK?

The Fed met today and, as most expected, they have left the interest rates as well as
their policy unchanged. This ruined some of the hopes that last standing optimists had.
From the contrary point of view, this could mean that most of the bad news is behind us.
The earnings season is rolling out next week and it may bring some energy back to the
market. Still, further developments in the economic situation will remain important things

3/4
to monitor. If we see signs of improvement there, this market will get its friend, Trend
back. Don’t be in a hurry to get overly optimistic. The best strategy right now is to be
patient.

WHO WILL BRING OUR FRIEND BACK?

The reason we don’t call this market a bull or bear market is because while some sectors
such as telecom, boxmakers and Internets are getting killed; others like energy, optical
networking, biotech, brokerage and insurance are making new highs. It will also be
important to identify the horsemen that will take the NASDAQ and other markets higher. It
seems some of its distinguished generals are retiring and the market is indecisive
because it is looking for the new leadership.

MAYA SOBOLEV at

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 4 October 2000

Hello out there stock fans. A down opening at the bell today produced a good turn around
with stocks closing higher on very heavy volume by the close. You folks can see how the
market works with strong openings and then a hard sell off by the close, and then a down
opening followed by a positive close. Gamesmanship is all it is or should I refer to it as
reading market sentiment very well.

Well today we saw many stocks snapping back from deeply oversold levels at the end of
the day with a few of them popping back up above trend lines like BRCM. However most
stocks are still in lower highs mode until proven otherwise. There are some stocks that
are still hanging in there with nice unbroken charts like Newport Corp. (NEWP), but this
stock could be in the final stages of its long 5 month move. At earnings time in two weeks
this stock could move lower and break its trend line similar to Power-One (PWER). Right
now I’m looking for a blow off top on this one over the next two weeks as it moves into its
release of earnings.

After the bell today Micron Technology (MU) posted much better than expected earnings
and the stock is up $1 in after hours trading while Dell Computer (DELL) is guiding
revenue forecasts lower due to the weak Euro and some managerial problems in Europe.

1/4
Both of these stocks are in the ultra week Semi-conductor sector so there is little
movement is after hours trading on most of the optical stocks or other strong groups.

Tonight I have some excellent charts of the NASDAQ and it seems the NASDAQ may
have hit bottom for the short term and hopefully for the long term too. Time will tell but
after today’s 75-point slide and the NASDAQ’s almost 900-point slide in just three weeks
time the market is about as deeply oversold as it can get.

Here are the two charts of the NASDAQ with one being a compressed weekly chart and
the other being a daily chart.

2/4
Now that we have seen those charts were it the next point that could stop the advance
and that of course would be the last point that was support which is this case was the
support line that was just broken at the 3610 to 3630 area. My guess is we get to the
3630 area tomorrow and then see a sell of and maybe a retest of todays low in a week or
two.

Here are some picks for the active day trader and chart reader. NUAN at $130, SDLI at
$312, NEWP at $177 and maybe EMLX at $118. Of course if the market is going to rally
tomorrow then the usual strong stocks will move too like AMCC, JNPR, PHCM, RIMM,
CIEN, PMCS, BRCM, EXTR and snap back hero today ARBA. I’ve added two stocks to
the strong mover list here that you can see and those two are RIMM and PHCM.

That’s it for today folks. See you on Sunday and the week of Oct 15, I will take a few days
off, as I’ve not had any time off since last February when I took off for a week.

Daniel J. Zanger

Chartpattern.com

Please check out this link to my upcoming seminar in Miami

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 October 2000

Hello out there stock fans. Near record volume on Wednesday of last week combined
with the NASDAQ closing on the high on the day after bouncing off support looked very
promising for a potential market bottom. However this was quickly erased on Thursday,
as the market was very unhappy that European central bankers raised interest rates in
the face of very low consumer confidence and very high oil prices.

This will only exacerbate the slowing in Europe even though the rate rise was probably
intended to stop the Euro from sliding further and hopefully reverse the Euro back to more
normal levels. This would also make the cost of petroleum less costly as the Europeans
must buy dollars to pay for their oil.

Friday saw much of the same selling action due to the employment figures this time with
the NASDAQ breaking that long-term trend line that I had for you on Friday of last week
on heavy volume. The NASDAQ is in a free fall with very few positives to stop the decline
other than some good earnings, which hopefully will come this week. However talk is
already of 4th quarter earnings and not currant ones. This shows you how low confidence
has gotten in stocks.

How much is the economy slowing and will my stock be next with an earnings surprise
seems to be the key concern of all investors including institutions and funds. Until
uncertainty about earnings and growth are a little clearer stocks will probably remain
under pressure.

To add to the tough environment is the fact October is a very tough month in the minds of
many, and with the market in a free fall this October stigma may only add fuel to the fire
which could set off a panic at some point. Remember the market is known for two things,
fear and greed; right now fear has the upper hand. On a more positive note, most market
bottoms are made in October so the pain however deep it goes this month should be over
in three weeks.

To top things off the Dow Jones industrials are sitting on top of a long term trend line with
a classic head and shoulders formation. No telling what will happen when this line is
broken. Could be very little to a longer-term slide of some sort. I doubt there would be a
sharp sell off as there is no big country going bankrupt like Russia did a few years back.
It’s possible we glide south for some time or just it continues to have a high level trading
zone between 9800 and 11,300.

1/3
In tonight’s chart of the NASDAQ will see that during the 900 point slide that volume was
very heavy and above average. This shows us that money and confidence is leaving the
NASDAQ. One might also say that heavy distribution is underway which will take time to
repair. This time factor usual means 9 months to 18 months or until the Fed’s begin to
lower interest rates.

2/3
Here are some stocks that look like they want to go lower with my technical entry points.
TERN at $29, TLGD at $129, VRTS at $129, BRCD at $212, DIGX at $35,EXAR at $98,
IMCL at $98, IMGN at $27 and INKT at $90.

Cash seems to be king and when the model portfolio has gone to an all cash stance like it
did last week things have always gotten a much worse in the stock market.

See you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 October 2000

Hello out there stock fans. Another sell off at the open today with many stocks dropping
$5 to $12 on light volumes due to the holiday today. This light volume was seen by many
that selling pressure is abating combined with the fact that the NASDAQ is very near to
the lower trading band and deeply oversold makes the market vulnerable and ripe for a
reversal.

This is what took place today and of course once buying pressure starts this also starts in
motion shorts running for cover, which in turn adds to the buying pressure. How much of
today’s light volume was due to short covering is anyone’s guess but I assume there was
a lot of short covering today especially in leading stocks like Juniper Networks (JNPR)
Ariba (ARBA) and others. The point about short covering is that there is no accumulation
is talking place in the stock and once the shorts have covered stocks often tend to fall
back down again.

Since this hard sell off ensued some four weeks ago the market has repeatedly tried to
find support with nothing but one rally failure after another. Each and every time I
mentioned that the day’s action was encouraging, the next day we were met with a sharp
reversal to the downside. It’s going to take more than today’s action for this market to
finish its corrective action, but maybe an up day up like today on reduced volume is going
to prove to be the start of some base building which it sorely needs before this market
can move out off the lows and put an end to the selling. Like I’ve said before time will tell
and this market needs time.

Let’s take a look a chart of the NASDAQ and see what maybe a potential inverted head
and shoulders formation, which could signal the sell off is near. Let’s hope so.

1/4
Tomorrow Yahoo! (YHOO) reports earnings after the bell and being that it’s a bell weather
Internet stock its earnings outcome should have a huge impact on many other tech stocks
in the market. Will there be lots of short covering at the end of the day tomorrow or will
there be more shorting in anticipation of a hard sell off the following day. The last time
YHOO reported stocks took off vigorously for two days, however since then it has warned
of slower add revenues.

Here is a chart of a potential mover that broke a small trend line today. Once the selling
has ended we should start to get a lot of these formations, which of course I will list here.

2/4
Here is one of the leading chip stocks of the past 5 years and its ready to move out again.

3/4
Folks just because liquidation has taken place on the NASDAQ doesn’t mean we won’t
have big movers over the next few months, it just means there are going to be a lot fewer
of them.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 October 2000

Hello out there stock fans. Downgrades today by some of the biggest brokerages of two
of the better acting chip stocks Altera (ALTR) and Xilinx (XLNX). Comments were that
excess capacity is due to continued deterioration in the environment for general-purpose
semiconductor chips. This too had a big negative effect all chips, which in turn caused
last nights pick VTSS to gap down without it hitting a buy point.

This of course dropped two of the stock markets better performers AMCC and PMCS into
a free fall with many other leading stocks like Broadcom (BRCM) and Verisign (VRSN)
breaking areas of support. The NASDAQ was down again some 114 points to close the
day near its low at 3240. Like I mentioned this past weekend you just never know when
your stock will all of a sudden gap down and hemorrhage out of the blue and into the red.
It’s days like today that help one decide to go all cash when the market breaks support
next time, if they missed it this time. A great trendline exercise to be sure.

By the way after the close of the market today, Lucent (LU) noted that earnings would be
far worse than previously said and the stock is taking an additional discount in after hours
trading, as is CIEN, JNPR, PMCS and AMCC. Also YHOO reported better than expected
numbers after the bell and the stock is moving lower on high volume down to $76 and
change. Seems there’s not too much good news on the street to rally stocks tomorrow if
you ask me.

I had shown the charts of two stocks last week with head and shoulders formation so I
thought I would revisit them to see how they are doing and what the charts look like today.

1/5
Here are a few charts of some stocks that should the market stay negative may want to
lower in price out of these patterns.

2/5
3/5
No telling how low we go folks but it’s going to take awhile before things get on track
again. Low side target for me is between 2800 and 3075.

See you tomorrow

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 October 2000

Hello out there stock fans. Bad news for Lucent (LU), Motorola (MOT) and Yahoo!
(YHOO) last night caused the NASDAQ to gap down at the open today which as often
happens caused some buying pressure with stocks quickly moving up before a wild day
of whipsaws with the NASDAQ moving down some 133 points before moving back up to
being positive then down again.

Stocks that were on the move in a positive way yesterday like Qualcom (QCOM) and
Phone.com (PHCM) rolled over late in the day breaking down and breaking support. It is
a crazy time in the market with so many stocks still sitting near new highs then all of a
sudden breaking down for seemingly no reason after these stocks fought off the 1000
point NASDAQ slide. Someone please tell me which one is next.

One thing that was notable today was that the NASDAQ was below the lower trading
band for the first time since the market sold off last spring. This alone has always set
buyers into motion, as it’s a sign that the sell off, at least temporary, maybe close to an
end due the composite being deeply oversold. I do expect a retest of this band or close to
it before one could safely say a bottom has been put in. This usually happens within two
weeks of today if today was the start of a bottom.

1/6
You may remember that pretty looking chart of the head and shoulders formation on the
Dow I showed you early last week. Well you might say that formation was a telling one as
the DJIA was moving lower in a hurry today due to the news on MOT and LU. A slowing
economy with rising expenses due to high oil prices has been no recipe for higher stock
prices and it seems the major market is finally moving lower in response to this.

Even with the NASDAQ's oscillators readings at the extreme low end and the put to call
ratio at one of the lowest readings since the 87' crash you’d think all the ducks are lined
up for a big rally. This maybe so, but with the DJIA just starting to roll over I think this
would add pressure to the NASDAQ. One never knows, as the NASDAQ seems to be the
leading index and just may start up while the DJIA and S&P moves lower for some time.

After the bell today two strong stocks Red Back Networks (RBAK) and AMCC both
reported better than expected earnings with AMCC also setting a 2 for 1 stock split.
AMCC is up in after hours trading but tomorrow will tell if this enthusiasm will stick. It’s
about time we get some better than expected earnings news in the press. RBAK after
being up briefly is now down $4.

One thing I do see is that there are a number of stocks that are consolidating nicely. It
should be these stocks that will move out first after a bottom test is finished. I see
anywhere from 8 to 15 stocks ready to move out now, if they don’t break down.

Here is one stock that looks like it wants to move lower due to the chart pattern and the
lower one is breaking down with wild swings, which show liquidation. Be careful as the
market is deeply oversold and a meaning full bounce could happen at anytime.

2/6
Let’s look at a core holding. A centerpiece of you investment portfolio around which you
might want to have some riskier investments. Just kidding!

3/6
I think it’s far too risky to show any stocks in the day trader column today due to the
market being so deeply oversold and no stocks are set up for a proper move up as of yet.

Remember this weekend I will at my Miami seminar which is good news for those of you
that will be attending. Therefore there is no Sunday or Monday letter. I will not take any
further time off, as I love charting more than I love fun in the sun. Maybe later in the year I
will take off a few weeks but not next week as planned.

Tonight Maya has prepared a very nice report on stem cell research. See you folks on
Tuesday and Maya will be back with another report for you tomorrow.

October 10, 2000

IN FOCUS TODAY

THE STEM CELL REVOLUTION

Imagine what would happen if the treatments for cancer, diabetes, Parkinson’s disease
and Alzheimer’s were found. The world would never be the same again. And now,
researchers working on stem cell technology have started to see the light at the end of
the long tunnel. The potential cure for these and other life threatening and life debilitating
diseases can come from a type of cell discovered in the early 1960s. It is called a stem
cell. Even a Senate subcommittee decided to review the implications of this breakthrough
research to see if funding can be appropriated.

4/6
WHAT ARE STEM CELLS?

There are two types of stem cells: Embryonic Stem Cells and Adult Stem Cells. Both are
rare unspecialized cells. As they divide, they produce differentiated cells that belong to a
particular tissue or an organ (e.g. brain cells, muscle cells, blood cells, etc.). So basically
a stem cells can be turned into blood, liver, muscle, skin, etc. If we can learn to give
appropriate commands to the stem cells to produce a required cell type, we can learn to
heal the human body from the inside. We may be able to repair or replace deceased or
damaged tissue in patients with many diseases. Some researchers even speculate that
stem cells may provide us with an unlimited supply of organs for transplant.

Embryonic Stem Cells are found in embryos at the different stages of development.
Research has shown that they can give rise to almost any cell type. Adult Stem Cells,
mostly found in the bone marrow, are found in adult animals and human beings. They are
more readily available to researchers but their use is limited since they can only develop
into a limited number of tissues.

CONTROVERSY

In recent weeks, there was much talk in the press about this encouraging and contentious
research. Scientists, actors, and activists are testifying before the Senate subcommittee.
Eventually, the Senate wants to determine what kinds of patients will benefit from the
research and whether federal funding can be allowed in this controversial field.
Supporters for the funding, including scientists and hopeful patients, say the research is
much too promising to be abandoned on unfounded ethical or moral reasons. Protestors
argue that although this research may give some benefit in the long term, there will be too
much sacrifice. They say that many stem cells have to be extracted from the human
embryo and this process kills the embryo. Supporters respond that since abortion is legal
in this country, using the aborted embryo for research purposes should be allowed. The
debate eventually comes down to the issue of abortion.

The Senate will eventually reach the resolution and come up with a bill. If the dispute is
resolved in favor of the researchers, the stock market will go wild about the players in the
industry.

PLAYERS IN THE FIELD

The Biotech Research Companies focusing on Stem Cell research are needy of cash and
are anticipating positive governmental resolution.

Aastrom, Inc (ASTM) – is developing different cell therapy systems to enable

researchers to isolate stem cells from small tissue samples in the patients. Once the stem
cells are isolated from an individual using AastromReplicell, they can be modified and
reinserted into the wounded or diseased tissue of that person to treat the disorder. Similar
procedures have been started in Europe. Aastrom is now waiting for the FDA to approve
the AastromReplicell system.

5/6
Geron Corporation (GERN) – a larger player in the field, has 3 research directions, one
of them being Stem Cells. Geron wants to use its hP stem cell technology to help the
development of transplantation therapies. However, the company does not know if and
when the its first human trials may begin. It will need much capital to continue its research
and if everything goes well the US government may end up being one of its partners.

Imclone Systems, Inc (IMCL) – an established company with a strong drug pipeline.
One of its research efforts includes isolation of stem cells to determine their possible use.
It has parternered with Immunex (IMNX), another researcher in the field.

StemCells, Inc. (STEM) – is among the risky pure plays. It has sold off other parts of its
business, renamed the company, and decided to focus only on the isolation and
production of stem cells including the development of possible therapies.

While there are other players, the above-mentioned stocks in our opinion have the largest
potential.

Daniel J. Zanger
Maya Sobolev
Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 October 2000

Hello out there stock fans. A powerful rally on Friday of last week sent the NASDAQ up
about 240 points on fair volume but not heavy volume, which made Fridays’ rally suspect
as to a market bottom. Monday saw another good rally however the NASDAQ closed
lower than Friday’s close even though many stocks had powerful moves with good gains.
Today of course we had a strong down day after a spirited opening with many stocks
hitting broken ascending trend lines in snap back fashion before selling off. Newport corp.
(NEWP) was one of these stocks completing its snap back after a hard break of a major
trend line last week.

Lets me show you what I’m talking about on this snap back to the prior trend line before I
move on to other items. Here is a chart of Newport Corp. (NEWP).

After the bell today a host of technology stocks reported earnings, from Intel (INTC) to
IBM and many other stocks including ITWO, CMTN and RFMD. Copper Mountain
(CMTN) and R.F. Microdevices (RFMD) were cut in half in after hours trading on heavy
volume as both reported that next quarters earnings would be weak. IBM is down a
number of points while INTC is up a point. Seems this bear market in tech is not over yet
which seems incredible given that the NASDAQ is down almost 40% from the highs of the
year.

1/4
There are a number of stocks are still at new highs which considering that the NASDAQ
has been selling off hard for 6 weeks and given up 1100 points seems far fetched. These
stocks by tick symbol are, JNPR, VRTS, NTAP, BRCM, ITWO, CIEN, EMLX, PPRO,
EXTR, RIMM, HAND, and BRCD. It is these stocks that I’m focusing in on and many of
you know them as my focus stocks. I believe most of the winners when this bear market
or corrective action ends will come from these stocks. Remember many market bottoms
are found in October and we are very near the end of this month. Lets hope this wicked
sell off ends with the end of this month or sooner.

Before I can list some stocks or show some charts I need some area of consolidation.
Friday and Mondays run will need to consolidate before I have stocks to list. With the
market so deeply oversold shorting stocks may prove unwise at this time. I would like to
note that stocks like JNPR, CIEN, and other leading stocks may have sort of a double top
in place. Be careful on these focus stocks.

The seminar in Miami was very informative for all and it was nice to meet everyone. I
hope to have another in the upper east coast area in the spring. If you left a tape recorder
there let me know as I have it.

This weekend I will be speaking at the MASC conference in Long Beach, Ca. along with
John Bollinger and Ralph Acampora this Saturday. You can get tickets if you like and
more information by clicking on this hyper link.

Http://www.bicer.com/masc/speaker.html

On Friday of this week I will be on TV again on BizNews1 formerly the Business Channel
here in the local L.A. area from 1:00 pm to 1:30 pm.

Tonight I have a report for you from Maya that you will find very informative. In here we
have a blurb on Network Appliance Tech. (NTAP), which is acting superb as of tonight
and is one of my focus stocks.

THE STORAGE ADVANTAGE

Today the importance of storing information is becoming critical as e-commerce and

Internet usage are growing. Currently about 6 billion emails get sent out each day. And B-
2-B transactions alone, for example, are projected to exceed $1 trillion by 2003,
according to Forrester Research. And just imagine how much of that storage capacity we
are going to need when interactive television is here.

So let us talk about two common types of storage that are used today: the Enterprise
Storage and the Network-Attached Storage (NAS).

ENTERPRISE STORAGE is the high-end storage devices based on the storage area
networks (SAN) standard. Enterprise storage devices are used for storing the biggest
bulks of information and they are the cores of the storage infrastructure for enterprises.
EMC is the clear leader in that space and supplies enterprise-oriented data storage and

2/4
retrieval technology (software). EMC has over 50% market share. Software business (its
storage operating system and other storage applications) is EMC’s fastest growing
segment of business.

NETWORK-ATTACHED STORAGE (NAS) devices allow for data to be stored in a local

area network (LAN). Those devices are usually smaller and less expensive than SAN
storage devices. NAS systems, also known as network file servers, have certain
advantages over enterprise storage. With their help, it is easier for companies to
gradually increase storage capacity of their network. Network Appliance (NTAP) is
currently the largest seller of NAS systems.

Optical networking is booming right now due to the demand for broadband. Optical
networking companies insure transportation of data while storage companies are
responsible for storage of that data at the ends of the networks. However, it is believed
that the rise of demand for storage will be more consistent than broadband demands.
Once people and corporations receive their high-speed connections, they will begin
storing things like multimedia files, digital photos and other data. So the optical and the
broadband booms will undoubtedly give rise to the explosive demands for storage.

FUTURE PROJECTIONS

But how big of a market are we talking about? The estimates vary on how big the storage
market will get. IDC projects the storage market to be worth at least $46 billion by 2003.
EMC, itself, expects the data storage market opportunity to grow to $78 billion in 2003,
from $38 billion in 1999. Corporations used to spend only 25% of their hardware budget
on storage devices, figures now stands at 50% and expected to rise to 75% by 2003,
reported by Gartner Group Inc.

THINGS TO WATCH FOR

With such tremendous opportunities in the storage area, it may pay off to watch the two
leaders of the industry, EMC and NTAP. However, it is important to realize a few of the
following things:

The biggest risks for those companies are competition and valuation. Competition from
heavyweights like IBM, Hitachi and Sun Microsystems could end up cutting into the
revenue and earnings of EMC. At the same time, EMC has made plans to chase after
NTAP by expanding its business into the Network Attached Storage sub sector.

Growth expectations are so high that it will be hard to sustain this brisk market growth in
2001. EMC grew its revenues by 18% sequentially and 66% year-over-year, while NTAP
demonstrated 16% sequential and 125% year-over-year growth of its revenues.

Growth of storage market will heavily depend on the developments in the broadband
arena.

3/4
Worries about capital spending (similar to worries that recently occurred in optical
Networking space) could emerge if the economy slows.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 October 2000

Hello out there stock fans. A brutal opening today with all indexes gapping down from
worse than expected inflation news from today’s CPI. Also bad earnings news from IBM
helped the market move lower as this core holding gapped down at the open some 17
points. The NASDAQ opened down 188 points while the DJIA opened down some 422
points. Stocks rallied slowly from the open with the NASDAQ finally turning positive
during the day before end of the day selling took many stocks that went positive into the
red once again.

This was the second time the NASDAQ gapped down to this low level before turning up.
Today’s difference was that today’s low undercut the prior low which can often be seen as
a clean out of weak holders which can be considered positive. Also today’s volume was
one of the heaviest since the April lows. Capitulation seems to be at hand. These are
signs that the market maybe close to bottoming at least for the short term.

Should the NASDAQ move well tomorrow this would go along way to show that today’s
move was the retest that I’ve been looking for and that a meaningful bottom has been put
in. However unless heavy volume comes in over the next few days and weeks this
potential bottom may in fact be retested sooner than later.

Let’s look at the NASDAQ to see how we are consolidating which could be the bottom.

1/7
Today we had some very positive and encouraging earnings reports from Microsoft
(MSFT), AOL, Broadvision (BVSN), SUNW, Phone.com (PHCM) and a smashing quarter
was reported from Broadcom (BRCM). SUNW reported during the day by mistake while
the others reported after the bell. All of these stocks listed here were up $4 to $8 in after
hours except SUNW due to its mid-day report. These leading stocks especially MSFT and
AOL should help the market at least at the open. Maybe we will have a big day tomorrow
and the NASDAQ will close above today’s high on heavy volume. This close above
today’s close would be a good start to a recovery.

Lets look at some potential leaders that are in the works right now.

2/7
3/7
A few others stocks that are new leaders are the hand held device manufactures. Three
stocks are in this new leading group and they are Handspring (HAND), Palm (PALM) and
Research in Motion (RIMM). All of these stocks are powering ahead into new highs but
are extended right now. After they rest and have a pattern to buy from I will have them
here to show you.

That’s it for tonight and I hope you folks in the LA area tune into Biznews1 on Friday
afternoon here in the LA area on cable at 1:00 pm to 1:30 pm as I will be taking you calls.
Or maybe I will see you at the MASC show on Saturday in Long Beach, CA. See last
nights e-mail for the hyper link if your interested.

Here is a report on B2B’s from Maya, which may not be as timely as I thought it would be.
Store it for future use, as the industry is not going away anytime soon. The title is not
appropriate for investors right now but for companies it’s a must. Next up is a report on
RIMM, HAND and PALM.

WHERE DOES EVEBODY WANT TO BE? IN B-2-B!

Everyone hears that B-2-B market is estimated to reach trillions of dollars Forrester
Research, a respected market-forecasting firm, expects this market to reach $6.3 trillion
by year 2004. But do we really understand what that means? This is the market for the
companies that facilitate B-2-B, right? Wrong! This is the projection for the total value of
goods and services exchanged over the Internet. These trillions (already in existence) are
simply transferring over into the new Internet infrastructure. The opportunity for the

4/7
procurement and marketplace solutions providers, the companies that we simply call B-2-
Bs, is much smaller although still significant, it is expected to reach about $9 billion by
year 2004, according to IDC. The market capitalization of Commerce One (CMRC) alone
stands at over $11 billion today while Ariba’s (ARBA) is valued at a gigantic $30 billion.
Lofty valuations, would you say?

It is mostly the old-economy companies that are moving over to the Internet
infrastructure. Why are the companies moving some of their operations to the virtual
world?

- Companies can get better price

- Companies can save time

- Companies can manage their inventory more effectively

- Gives a better view of their spending

- The process of purchasing or supplying becomes more simple and yet more
sophisticated to reach better results

Lower costs and higher productivity in the virtual world will help eliminate certain labor
and paper handling costs. These businesses are realizing they don’t need some of their
salespersons or some of the people working in the supply department computers and
servers are doing the jobs!

The move to the Internet for these companies is guaranteed. This is different from the B-
2-C space where the companies have learned that people would not always go to the
web to buy stuff. They would only do it if it were fun. But it’s also fun to go and shop at the
mall, to be able to touch, smell, and try on whatever you’re buying. In B-2-B, the story is
different. Businesses are in brutal competition and they are out there to make a profit.
They are moving their operations on the web to stay competitive and to make more
money.

B-2-B VENDORS

Now let’s talk about the providers of the B-2-B infrastructure. There are two main groups
of beneficiaries, the companies who are building the infrastructure for the B-2-B. Those
groups are absolutely necessary for the companies to make deals. They are the physical
network builders and the software makers (which can also be divided into subgroups:
security and applications providers).

Physical Network Builders

The network builders are the companies that offer the reliability and the security of the
network, companies that provide Virtual Private Networks (VPNs). VPNs are systems that
use encryption and other security mechanisms to ensure that only authorized users can

5/7
access the network and that the data cannot be intercepted. Extranet VPNs are designed
to enable the linkage of customers, suppliers and remote employees to a corporation's
network. Virtual Private Network Consortium (VPNC) was created to increase
interoperability between members and help potential customers understand VPN
technologies. The companies enabling these solutions include: CSCO, LU, NT, BRCM,
HIFN, COMS, INTC, NOK, COSN (a recent IPO) and many others. They are the non-
traditional B-2-Bs; investors usually forget to put them in the category.
Security Providers

And the usual suspects, the providers of the important security software, are a part of B-
2-B as well. Without them nothing on the Internet is possible. Verisign (VRSN) issues
digital certificates of authentication and certifies the validity of the deals; CheckPoint
Software (CHKP) whose firewall software shields e-commerce from both internal and
external unauthorized access; Internet Security Systmes (ISSX) whose products protects
corporate networks, extranets, and the Internet from misuse and security violations.

Software Applications Vendors

This group is the group that is known as the B-2-B sector group in traditional sense of the
word. These are the application software vendors, the pure plays of the B-2-B space.
They can be classified into the following categories:

- E-procurement Buying and Selling solutions and E-Marketplaces: Ariba (ARBA),

Commerce One (CMRC), Oracle (ORCL), Purchase Pro (PPRO), Clarus (CLRS)

- Vertical Online Auctions: FreeMarket (FMKT), VerticalNet (VERT), Ventro (VNTR),

SciQuest (SQST), Commerce One (CMRC)

- Supply Chain Management: I2 Technologies (ITWO), Manugistics Group (MANU), Agile

Software (AGIL)

- Customer Relationship Management: Siebel Systems (SEBL), Broadvision (BVSN),

E.piphany (EPNY), Kana Communications (KANA)

AND THE WINNER IS

Of course, these are just some of the companies who are trying to get into B-2-B space.
Who will be the winners? It’s hard to say at this point. We have already seen some
consolidation in the space and you can be assured that it will continue. What is
happening currently is a battle of different business models. B-2-B companies are coming
up with many ways of making money: by licensing revenues, by charging a fee per
transaction, they are taking stakes in the auctions and coming up with other creative
ideas to make money. The winning companies will be those who will be able to prove their
business model works. Which business model? The one that provides for consistent
revenue and earnings streams. Will have that in one of our next reports.

6/7
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 October 2000

Hello out there stock fans. A powerful move today as we all know which confirms the end
of the October and September bear sell off. Microsoft said that business is picking up and
the market took note of this with a 250 move today. After the bell many stocks posted
blow out numbers like CORV and EMLX. Stocks are gapping up good in after hours
trading which is highly suggestive for a very positive day tomorrow.

Here are some picks and one chart tonight. JNPR at $235, NUAN at $96, OPLK at $32,
PWER at $75, QCOM at $79. AMCC at $195 as this stock just moved and closed over
the 28 day today MA line. BRCD is coming out of a small cup and handle with a buy point
at $247.

Here is a chart of one stock that can move well when it wants to.

There will be many other selections to come, as the next three months are by far the most
profitable months of the entire year in the stock market on a historical basis. Next week I
will have a historical chart to show you.

Here is our report on the hand held device makers, which by the way are extended in
price right now. RIMM and HAND move the best therefore it’s these two that I will be
focusing in on.

1/3
WIRELESS WONDERS?

THE DEPRESSED SECTOR

Look how depressed the wireless sector is! The old kings of the market have been
overthrown: NOK, RFMD, ADAP, PUMA Profit warnings, stock downgrades, estimate
revisions Why are these stocks so depressed? The answer may be pretty simple. In
1998, there were about 250 million cell phones sold around the world; this number almost
doubled in 1999. This year, however, it is clear the number is nowhere near doubling. The
reason? Who is going to buy new cell phones? The world population today stands at
about 6 billion people. Those who wanted a cell phone and could afford one, already
have it. There is nothing so strikingly different in the new cell phone models released
today that would make me dump my existing phone that I bought less than a year ago. So
it’s clear the growth is slowing, and it’s taking the wireless stocks down with it.

Another factor limiting the growth is that almost all of the cell phones today specialize in
transmitting voice not data. The market will explode once again when we get a device
that combines the two, voice and data. Those kinds of devices that provide people with
quality data from the Internet do exist today in Europe and Asia, but make us, the
consumers in the U.S. only sigh with jealously. But to receive data from the Internet onto
a handheld device is a dream for many people and corporations.

In spite of the depressed sector, there are a few companies that have stayed immune, at
least so far, to the disease that spread in the wireless sector. These companies are trying
to move us closer to the days when the voice and data information will converge into one
simple handheld device.

WHO ARE THESE NEWBIES?

RESEARCH IN MOTION LTD (RIMM)

Market Cap of $8.7 Bil, Shares Outstanding 71.5 Mil, Float of 53 Mil, 52 wk high of
$175.75. Last Q revenue $43 Mil, up 57% from previous Q, up 121% from year ago.

Maker of the popular BlackBerry two-way e-mail pager. The corporations love this device
because it lets their employees communicate effectively especially when they are away
from the office. Research in Motion is expected to add voice capabilities to its popular
two-way Internet enabled pagers. Investors are also excited about RIMM's potential in the
consumer market with partners including America Online (AOL). The company also
makes radio modems and PC cards that make wireless Internet connections possible for
laptops.

HANDSPRING, INC (HAND)

Market Cap of $11.6 Bil, Shares Outstanding 125 Mil, Float of 10 Mil, 52 wk high of $97.
Last Q revenue $70.5 Mil, up 36% from previous Q.

2/3
This company is in the PDA (Personal Digital Assistant) business. Many of Handspring’s
PDA models have a wireless Internet access in addition to the address book, e-mail, and
memo functions. Handspring licenses its operating system from Palm. Next month the
company is planning to come out with a product for its Visor PDA that will be snapped on
the PDA to turn in into a wireless phone.

PALM, INC (PALM)

Market Cap of $32 Bil, Shares Outstanding 566 Mil, Float of 560 Mil, 52 wk high of $165.
Last Q revenue $401 Mil, up 15% from previous Q, up 127% from year ago.

This is a similar story to HAND but with bigger revenues. The company is working
together with Motorola (MOT) to bring out a combo daytimer-Net surfer-cell phone device
by early 2002.

THINGS TO WATCH FOR

The competition is huge and furious. The threat for these newcomers is that the old dogs
of the industry such as Nokia (NOK) will unveil similar or even better devices. From the
risk standpoint, it seems that RIMM is the less risky one of the three company discussed
here, as it targets both business and consumer markets broadly.

Another critical issue will be whether these companies will be able to expand their
services around the U.S. For that, they will need to build relationships with many wireless
providers such as Vodafone, Sprint PCS, AT&T and others. And that may not be enough.
Another issue is the poor quality of connection, which may slow the demand.

And the last thing to remember is that these are momentum stocks with extremely high
valuations. So if these companies are unable to deliver they will be punished severely just
like any other stock that can’t deliver.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 October 2000

Hello out there stock fans. Tremendous power in most high tech stocks on Friday moved
the NASDAQ up just 64 points while many current and recent leading stocks move up as
much as 20% in just one day. This lift off from the markets recent lows is quite similar the
power we saw last November when the NASDAQ started its record breaking bubble run
that went from November 1999 to March 2000. However I sincerely doubt we are going
into bubble mode once again.

One of the reasons for this move is a lot of short covering, that once exhausted should
temper the movement of many stocks. However there will still be many stocks moving
smartly going forward for the next two to three months. Historically there is a lot of money
coming into the markets this time of year due to year end bonuses, Christmas shopping,
and government spending. Let’s take a look at the NASDAQ now and see where it is and
where resistance might be.

Many companies are producing superior earnings with this quarter earning cycle
combined with powerful chart patterns. Let’s get to some of them and see where one like
me might get in at an opportune time.

1/5
Newport Corp. (NEWP) Here is a chart of a very strong stock that just posted very good
earnings numbers. I’ve had it listed here a number of times and the stock moves well in
both directions when its time to move. Newport Corp. (NEWP) is in the extremely strong
fiber optic group with such stocks as JDSU, SDLI, GLW and others. Revenues for NEWP
were up 87% to $66 million and earnings were up 257% to .25.

J N I Corp. (JNIC) Here is a nice little company that has just reported very strong
earnings, which were up 500% to .18 while revenues were up 177% to $30 million. The
company makes fiber channel hardware and software for data storage needs. Data
storage as I’ve shown here with NTAP, EMC and others is a very strong group right now.
Here’s its chart.

2/5
SDL Inc. (SDLI) Reported powerful earnings this past week and the stock responded with
a gap in price and a $49 move in price on Friday. Even though JDSU is acquiring this
company the numbers are so powerful that it’s lifting both stocks. Earnings were up 309%
to .45 while revenues were up 208% to $146 million.

3/5
For those of you at home or office on real time that would like to know which stocks I have
on my screen during the day here they are. I call these my focus stocks. ARBA, PHCM,
ISIL, AVNX, AMCC, SDLI, PMCS, EMLX, BRCM, ITWO, VRSN, IWOV, JNPR, BRCD,
VRTS, NTAP, JNIC, NUFO, NUAN, RBAK, NEWP, RIMM, HAND, GLW. JDSU and CIEN.

Many stocks that posted tremendous earnings growth of 80% greater this past week. All
of the stocks I will list here also had positive responses to their earnings such as a break
away gap on the news of earnings or just lots of power when earnings were released.
They are, CHKP, CYBE, EMLX, PHCM, AVNX, SDLI, MERQ, BRCM, JNIC, NTIQ,
AMCC, and NEWP. Most of these are of course on the focus list above.

Here are some stocks with nice patterns that are ready to possibly move tomorrow with
my technical buy points. PDLI at $122, ALXN at $101, IMPH at $66, IMGN at $40, CHKP
at $171, RBAK at $141, JNIC at $90, MEDX at $60.

Many others stocks are reporting this week such as VRSN and GLW. Both are poised for
big gains from what I hear, as are many other stocks. You can go inside the web site in
the member login area where you will find an earnings calendar for the upcoming week
and a free chat room for active traders.

I will have more on Monday

Daniel J. Zanger

Chartpattern.com

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 October 2000

Hello out there stock fans. After 400 or so points to the upside last week the NASDAQ
took a well-deserved rest today with a very minor retreat of 14 points. Most tech stocks
that were moving very well last week took the day off or were off their highs by a wide
margin today. This was especially true for the fiber optic stocks while the Biotechs kicked
it up a notch with leading Biotech stocks moving up smartly.

The NASDAQ was briefly above the 28 day moving average line before moving below it
once again. It would be very healthy for the NASDAQ to consolidate below this line for a
few more days before it moves above it.

A number of stocks listed here recently were on the move today like NEWP, which moved
up smartly for 10 points before settling down 3 points for the day. The pattern is still in
place, but it appears the stock may need more time and remember, the group was weak
today. See SDLI, GLW, JNPR and CIEN.

JNIC had a very nice breakaway gap at the open and another day of high volume. It
would be very positive if today's gap in price is not filled. A filling of the gap I always
consider a sign of weakness.

Other stocks that have been list here with their charts are still looking good even though
they maybe lower like NTAP and VRTS. Minor downgrades in a strong market usually
take a stock down for a short period of time before the stock recovers and moves back up
to make new highs. This should be the case with NTAP.

Here are some stocks to look at for the active trader with my technical entry points. CHKP
at $171, ARBA at $136, RBAK at $139, ABGX at $87, ELNT at $112, RIMM at $126,
FDRY at $88, FMKT at $51, MERQ at $127, MLNM at $78.

Most stocks need more time for the charts to set up after last weeks run. When they do I
will have more charts to show you but none as of tonight.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 October 2000

Hello out there stock fans. A good start today with the NASDAQ up some 50 points in the
first few hours of trading putting the NASDAQ once again over the 28 day moving
average line. Pre-opening news from National Semiconductor (NSM) as it reported
slowing sales, now and in the coming quarter, had little effect on the overall market at the
start of the day.

However heavy mid day selling took place seemingly from out of nowhere and stocks
began to crater in price in the blink of an eye. Many stocks that were up $5 to $10
suddenly began to sell off in hurry. Stocks like CIEN, VRSN, AVNX, GSPN, and many
other high tech stocks wound up the day losing $3 to $10 as the closing bell rang.

After the bell Nortel Networks (NT) reported better than expected earnings, but revenues
were on the light side to many. This stock and all stocks in the fiber optic group were
taking heavy discounts in after hours trading. Was this information released to select
individuals and funds during the day, which might have caused this mid day, sell off? Very
suspect if you ask me.

A number of other companies like AMZN, VERT, SEBL and CPQ reported better than
expected earnings after the bell too, with their stocks up slightly, but coming under
pressure as NASDAQ futures are down some 80 points in after hours. Could be a tough
opening tomorrow folks, especially for the fiber optic group.

Lets see where support might be when the NASDAQ comes down tomorrow. In tonight's
chart we see that support is a retest of the descending trend line that was just broken.
This comes in at 3347 and if that's broken, then we could possibly get back down for a
triple test. I sure hope not.

1/5
The Brokerage index seems poised to move higher. This usually means the market wants
to move higher in time. This seems more so for the DJIA now and less so for the
NASDAQ.

2/5
Due to the action in stocks today there are no charts or picks. Maybe in a few more days
or by the weekend we'll have some charts or day picks. In the meantime here is a report
from Maya on B2Bs. By the way we are experiencing some technical difficulties with our
e-mail server. We are working on the problem and hope to have it resolved soon. Until
then if you don't receive the mail you can always go into the web site in the member login
area and see the newsletter archives.

WHERE DOES EVERYBODY WANT TO BE? IN B-2-B!

PART II

With so many players in the B-2-B space today, it's very hard to determine who will come
out as a winner. It's simply too early in the game. The companies who are moving their
operations to the Internet are trying out the services of many B-2-B enabling companies.
As for the B-2-Bs, they found out there are many different ways they can try to make
money. So lets look at different B-2-B models and introduce some of the leading players
in this space.

DO IT THE POPULAR WAY? THROUGH LICENSING? Ariba (ARBA)

Ariba's main source of revenue is its procurement application software for buyers and
suppliers. Ariba also provides a platform to build and manage B-2-B marketplaces.
Ariba's customer list is well diversified but has a focus mainly on large corporations and
about 80 percent of its revenues come from the US. Ariba has formed strategic alliances
with i2 Technologies and IBM in March 2000. The purpose of the alliance was to integrate
i2's supply chain solution with Ariba's procurement applications and with IBM's
professional services staff.

The risk: Will Ariba be able to capture the smaller players market?

THE HYBRID MODEL? TRANSACTIONS FEES AND STAKES? Commerce One

(CMRC)

Commerce One's main focus is on the global trading communities. Like Ariba, Commerce
One still obtains a majority of its revenue from licensing its technology. But to bring
additional revenue, Commerce One charges transaction fees from the marketplaces and
takes equity stakes in the exchanges it's helping build. Commerce One has made an
alliance with SAP to jointly develop and deliver e-marketplace solutions and about half of
its sales come from overseas.

Risk: How much income can these transactions produce?

SUBSCRIPTION KING? PurchasePro (PPRO)

The Company builds and supports interactive communities where businesses can buy
and sell a wide range of products and services over the Internet. PurchasePro charges
clients a monthly subscription fee which, on average, is about $75. Its clients are mostly

3/5
small and middle-sized businesses who only need access to the Internet and a
PurchasePro membership to participate in the communities. Because the revenues are
recurring, it is important for this company not only to go out for new customers but also to
keep the old one. PurchasePro's latest plans were to target customers with less than $50
million in annual revenue, which includes about a half million U.S. businesses.

Risk: For the smaller players, this model works fine, but what about the bigger
companies?

AUCTION ORGANIZER? Freemarkets (FMKT)

FreeMarkets creates online auctions for products in more than 100 supply verticals. More
than 4,000 suppliers from over 50 countries have participated in the FreeMarkets B2B
eMarketplace. FreeMarkets has signed up companies like agricultural equipment maker
Deere & Co. and aluminum maker Alcoa Inc. for its marketplace. Just recently the
company has signed an agreement to provide software giant Microsoft Corp. with its
online auction service for business procurement. FreeMarkets collects fees for conducting
the auctions and sometimes takes a percentage of what the buyers save.

Risk: Is the role of an auctioneer going to be enough to become a leader?

THE DO IT ALL GIANT? Oracle (ORCL)

Oracle has decided to do it alone so far. The company's strategy is to offer a full suite of
enterprise applications. Oracle believes customers do not want to spend a year or more
integrating all the applications that were not designed to work together. Oracle wants to
combine eCommerce, Marketplaces, Supply Chain Manangement and Customer
Relationship together in one package.

Risk: Will companies want to get everything from the same player? What if they would
want a focused approach? Like in the case with Seibel (SEBL) and its focused CRM
(Customer Relationship Management) software.

As you can see there are different approaches companies can take in B-2-B. Not all of the
approaches are going to be winning ones. Keep an eye on these major players, their
news of alliances and customer wins. The battle is just heating up!

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 October 2000

Hello out there stock fans. One company's shortfall due to demand that was so strong
that they couldn't fill all their orders and therefore generate enough revenues and the
entire tech sector has one of the worst breaks in the history of the stock market. This
company is of course Nortel Networks (NT).

Any stock associated with NT, any fiber optic or network stock such as AMCC and SDLI
collapsed today with losses up to a whopping $81. Most leading stocks in the market
today except for a few Biotechs had major technical failure as well. This suggests to me
that we could be headed lower for sometime to come especially in this group. This is
because we have just started lower lows and what will be lower highs after a snap back
for what were the leading stocks in the market today.

I also noted during the day that after stocks took hefty discounts today and sat there for
one to two hours, that no buyers emerged. Stocks were on sale $10 to $20 and no one
wanted them. As always this implies that stocks need to take a further discount to entice
buyers. It wasn't until the last 10 minutes of the day before stocks moved off their lows in
what is often times short covering.

The NASDAQ also broke below the descending trend line, which should have acted as
support but failed. This support level was at 3347 as highlighted in last night's letter. Also
note that the gap that was created by the powerful lift off last week was filled today which
suggests further weakness to come. One positive note, downside volume swamped
upside volume by a 6 to 1 margin. This can at times be seen as climactic or exhaustive in
nature. However with today's technical break down I doubt it.

To sum it up it was the worst day in the market I can remember since the crash of 87.
Everyone I know of including me had hefty losses, regardless of how quick we were to
get out. This was mostly due to the opening gap down in price as many stocks were down
$10 to $15 at the open.

Its not uncommon to see $10 to $18 breaks on many chip stocks, but to have $30, $40
and $80 drops in the blink of an eye on so many stocks and varied groups after being so
deeply oversold in the market is a huge surprise. All because of just one company's
inability to train enough technicians to install their products.

Here are two stocks to look at. One is a potential short (IWOV) and the other (CIEN)
needs to snap back before I would consider it to be a short, but CIEN, does look like
many others in this market break of today.

1/3
Hard to say if or which stocks will snap back if any, but listing stocks to short now would
not be wise with the market and stocks already down so low. A powerful snap back could
happen at anytime.

2/3
Tomorrow we have the employment cost index due out and on Friday the GDP numbers.
Also due out tomorrow are earnings for JDSU.

I will see you guys on Sunday

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 October 2000

Hello out there stock fans. One heck of a week on the NASDAQ this past week with the
last areas of leadership breaking down up to 40% in just 24 hours. All due to just one
stock's earnings report. Nortel Networks (NT) less than stellar revenue numbers sent
many related stocks down up to 160 points in less than 24 hours. SDLI, AMCC, PMCS,
CIEN and a host of other leadership stocks broke faster than a speeding bullet.

On Thursday JDSU reported strong revenue and earnings growth and even upped
forward projections of the same. Even though many stocks gapped higher on the news on
Friday the only real effect was a stabilizing one in this very nervous sector as many
stocks closed just slightly ahead of Thursdays close while others closed down sharply like
Versign (VRSN).

A number of these stocks that broke down hard will come back in time, while others may
never come back or struggle at lower levels for a long time before they do. I do think that
we'll have a good bounce on many of these this week while some have come up already
like VRTS.

The bigger question is whether the NASDAQ's bottom will hold or will we break down
further now that leadership has finally broken down. I personally think we will hold this
lower area in a lower level trading range for sometime. For us to move much lower, we
would need to see big cap stocks which are index heavyweights like Microsoft (MSFT),
Intel (INTC), Cisco (CSCO) and Oracle (ORCL) break down further. Right now it appears
that two of these MSFT and INTC, are moving up nicely, while ORCL is holding steady
after a hard hit.

For us to move much higher, these leadership stocks will have to come back. With their
charts broken like they are, I seriously doubt this will happen.

Even though CSCO is under liquidation, earnings are due out near the 7th of November.
This stock could move sharply either way when earnings are released as could many
others in this and related groups as did many with NT's earnings. Cisco's earnings could
prove to be a pivot point for the overall NASDAQ when they are released.

Meanwhile the DJIA is breaking above two trend lines, which is positive for all markets
including the NASDAQ. Let's look at the DJIA and see what's going on.

1/4
Here is a chart of the Biotech index. It shows us that these biotech stocks may need to
come down for a rest of some sort. This index has completed its snap back to its broken
trend line and has completed a head and shoulders topping pattern.

2/4
As you can imagine I'm not enthusiastic about any stock right now, as I am sure you are
too. However it is my job to highlight potential strong stocks, so here is one that was
bucking the sell off. It's in the software enterprise group. Manugistics Group (MANU) is
the company and there are only 21 million shares outstanding. Earnings for the last
quarter were up 123% to .03 and revenues were up 72% to over $58 million.

On Friday the GDP number came in at 2.6% vs.5.5% back in the springtime. This
represents a deceleration of growth of around 50%. Is the stage now set for a neutral bias
on interest rates at the next FMOC meeting in late November? A neutral bias could
change the environment for stocks very easily and would be suggestive of lower interest
rates in the near future.

As you know some stocks rallied during the day on Friday and as often happens, they
were sold down in price during the last hour and half of the day. If you decide to purchase
any stocks going forward for quick trades beware the late day sell off.

No day picks for now until things settle down and consolidate.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 October 2000

Hello out there stock fans. A tale of two markets today with the DJIA breaking above last
nights trend line and posting a solid gain of 245 points, while leading stocks on the
NASDAQ continue to come under valuations readjustments at the expense of many.

Even though most of these fiber optic and networking stocks have come down 30 to 50%
in just a few short days, there's still not enough buyers to counter the selling pressure
brought on by the large number of institutions that are selling these stocks in fire sale type
action.

It is the firm belief of those that own these stocks that the market is slowing down enough
that nothing short of wholesale liquidation will do. No one is willing to sit it out or risk
getting caught in a tech stock that could come up short of historical growth rates in the
coming quarters.

With slowing of growth in mind, it seems no one is willing to step up to the plate and buy
any of these extremely high P/E stocks. Therefore P/E's are going to contract and it
seems by quite a bit. For instance Brocade Comm. (BRCD) had a P/E of 581 as one last
Friday. Juniper Networks (JNPR) a P/E of 584 and so forth down the line on almost all of
the stocks moving lower today and the past week.

By the way, this move lower is not unlike the move lower we saw last March and April
except that so far there are no heavy whipsaws as the stocks move lower. Seems a total
realization by everyone that they are going lower, no question about it.

Lets take a look at some potential movers that might be ready to move lower.

1/4
2/4
Well that's all for tonight folks. I'll see you tomorrow. Oh by the way I will be out of town
this Sunday, so no Sunday letter. Please make a note.

Daniel J. Zanger

Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 31 October 2000

Hello out there stock fans. A very powerful snapback today that ensued quickly at the
start of the day for most beaten down stocks and groups. Many stocks tacked on gains of
$10 to $15 with many stocks closing at or near the high of the day which is considered
positive and suggests we should see follow through tomorrow.

Fiber optic stocks were on the move in snapback type action that always comes after the
break of any major trend. However big moves like we saw today in these stocks is not the
start of a new up trend, only snapback action. Also on the move were chip stocks of all
types and Internet stocks.

Here is a fresh chart of the NASDAQ and you'll see that two resistance points are just
ahead. One is the 28-day moving average line, which the NASDAQ could not close above
last time, and the other is a new descending trend line.

Here are some potential charts that have set up for the active day trader with my
technical buy points. IWOV at $102, RIMM at $103, EMLX at $148, ALXN at $105, NUAN
at $94, QLGC at $98, SDLI at $261, PHCM at $93, VRSN at $133, CIEN at $106, FMKT
at $50 and NEWP at $116.

1/5
Here is a chart of the biggest cap chip equipment stock that may or may not move.
Applied Material (AMAT)

Let's see where a recent broken down fiber optic networking stock might snap back to
before running into resistance.

2/5
If we can continue to move ahead, more stocks will set up as consolidation sets in. I hope
to have many more charts for tomorrow.

Here is a report by Maya on one of the better tech stocks in the market today in our
opinion. Checkpoint Software Technologies Inc. (CHKP)

CHIEF OF ALL THE GUARDS

CheckPoint Software Technologies (CHKP). Market Cap of $24.3 Bil, Shares

Outstanding 136.8 Mil, Float 98.5 Mil, 52 wk high of $177.88. Last Q revenue $116 Mil, up
28% from previous Q, up 101% from year ago.

===============================================================

The streams of information going though all types of electronic and optical networks are
growing dramatically every hour. However, the companies who are the source and the
users of this info, want for this information to be stored in a secure area. In other words,
corporations want this info to be received only by those people whom it is directed to.
Corporations do not want to expose their business online. Advertising areas are usually
the only open or public areas of their network. Not just businesses but individuals also are
worried about our privacy on the Internet. This is the reason why the VPN market is
booming today. So what is VPN? VPNs are systems that use encryption and other
security mechanisms to ensure that only authorized users can access the network and
the data cannot be intercepted. You may have read about VPNs in my B-2-B report Part I.
The key point here is that these networks are private, in other words, all the information
that's carried through these networks is secure. And who's the main guard of these
protected networks? It's CheckPoint Software Technologies (CHKP), who currently owns
more than 52 percent of the VPN market, according to the Gartner Group.

THE COMPANY

Founded in Israel in 1993, today CheckPoint stands as the biggest Israeli Company and
is treated as a national legend there. The company's first product was its easily installable
software designed to place a firewall between a corporate network and the Internet. It has
since added other products, including virtual private networking (VPN) software that lets
workers log on to corporate networks while at home or on the road. CheckPoint's
customers are mainly enterprises and service providers.

In the past, the company has mainly relied on the indirect sales model, but in the past few
quarters has shifted towards a more direct selling strategy which boosted its operating
margins to 55 percent, putting CheckPoint at the very high end of the software business.
This shift was due to the growing acceptance of CheckPoint as a brand name of Internet
network security.

3/5
Before CheckPoint was able to establish itself as the de facto standard in the industry, it
was highly feared that Cisco or Microsoft was going to take CheckPoint out of the game.
The fears never materialized. Today this guard of networks is stronger than ever and is
partnered up with dozens of technology industry leaders like Intel (INTC) and Broadcom
(BRCM) to gain further leadership in the Internet security front.

COMPETITION

An "absolute" brand name in the space, Check Point does have competition from Cisco
Systems (CSCO) and a few smaller rivals, including Axent Technologies (AXNT) and
Secure Computing (SCUR).

VALUATIONS AND COMPARISONS

During the company's recent earnings conference call, the CEO of CheckPoint, Gil
Shwed, noticed that most of the infrastructure has not even been built, let alone installed.
This year, indeed, the company's sales are expected to grow by at least 90 percent. The
CEO also conservatively set the company's annual sales growth target of 45 percent or
more for 2001.

Many companies build today's networks. Some companies are putting in dark fiber, others
are building optical and electronic components, others switches and routers and so on…
CheckPoint is among the dominant players in this space as well. The company is building
security for these networks, without which these networks could not live. One of the best
and safest ways to participate in this rapidly growing market is through CheckPoint. The
success of any of the players in this field will require more and more products from
CheckPoint.

The valuations are high but much lower if compared with the valuations of other players in
the networking space. Take a look at Corvis (CORV), for example, the company that
makes switches and transport systems for optical networks. Its market capitalization is
the same, yet Corvis has six time's smaller revenues and a dozen of very powerful and
smart competitors. It is possible that Corvis will be a winner in the future. But Checkpoint
is the winner now!

DEVELOPMENTS AHEAD

The most important thing for the company will be to expand into new markets:

The next big step in developments of today's networks is providing remote access. We
can see a confirmation of this wireless trend with stocks like RIMM, PALM and HAND that
exploded during the current bear market. The market is big. The big challenge going
forward for CheckPoint will be to capture and become a dominant leader in this market.
The company has already made some announcements in the area including an alliance
with Nokia (NOK).

4/5
The company's list of clients include big corporations and service providers, however,
they will have get in touch with the smaller guys if they want their profits to grow.
CheckPoint has indicated its expansion into the small and medium business area.

See you folks tomorrow

Daniel J. Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 November 2000

Hello out there stock fans. More bear market like behavior today as stocks reversed trend
at the onset of trading today. Seems much of what we witnessed on Tuesday may be
related to fiscal year end portfolio window dressing for mutual funds, which drove prices
up all day long on Tuesday. Of course poor earnings the night before from Altera (ALTR)
may have added to today's problem as well.

The real test for many stocks in the tech area will come on Tuesday of next week with the
outcome of the presidential elections and more importantly I believe, will be the release of
earnings from big cap bell weather Cisco Systems (CSCO). Its not going to be the current
earnings that drive this stock or the market but its forward guidance of things to come.

Stocks will be hopping come Wednesday to be sure. If you are concerned about this, as
many will be, then consider raising cash far before the close of trading on Tuesday. Also if
CSCO trades down on Tuesday this wouldn't be a good sign. It would be best to see it
trade up the day they release earnings.

Contrary to the head and shoulders formation I showed you the other day on the Biotech
index, which was bearish in nature, the Biotech's continue to hold up well, with many
stocks in this group making slight gains. Fiber optic, Networkers and chip stocks are still
under pressure. This pressure may remain for some time until institutions get a clearer
picture of how slow if any a slowdown might be in the works.

Here are some potential movers for the active chart reader and day trader with my
technical buy points. JNIC at $99, MLMN at $78 and this would break a nice long base on
this Biotech. MVSN at $80, MVAW at $28, NTIQ at $90, NUAN at $89, RBAK at $116,
SNWL at $18, SONS at $40.

REMEMBER THERE WILL BE NO LETTER THIS SUNDAY. I will however be back on

Monday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 November 2000

IN FOCUS TODAY...

WHY BROADCOM IS NOT DOTCOM

Broadcom Corporation (BRCM). Market Cap of $48.8 Bil, Shares Outstanding 121.3 Mil,
Float 120.1 Mil, 52 wk high of $274.75. Last Q revenue $245 Mil, up 28% from previous
Q, up 105% from year ago.

===============================================================

Remember the times of the Internet craze? Dozens if not hundreds of Internet companies
were going public two years ago. Among them was Broadcom, the company that was
also taking part in the Internet revolution. Where are those Internets now? Some have
disappeared, others became penny stocks, a few lucky ones got bought, but all now are
known as "the dot coms." But Broadcom is stronger than ever.

THE COMPANY WITH A BROAD PORTFOLIO

Broadcom Corp. is a developer of highly integrated silicon solutions that enable

broadband digital data transmissions within the business enterprise and to the home. The
company's integrated circuits (ICs) are used in over 90% of cable modems and digital set-
top boxes. Broadcom's clients include Motorola, Cisco, Samsung, 3Com and Scientific-
Atlanta.

Henry Nicholas III, the CEO of the company, is known in the industry as the guy who is
always three steps ahead of everyone else. When his competition is thinking, Nicholas is
already doing. Nicholas and his team are pursuing an aggressive acquisition strategy and
have gobbled up ten companies just this year. Like Cisco, Broadcom is going after new
leading edge technologies using its strong currency - its stock. Broadcom, however, does
it smartly by buying mostly private companies, so high premiums do not shock investors.
Broadcom is trying to expand vertically as well as horizontally in their business. From
access to the core, from home networking to the optical networking, Broadcom is filling all
the gaps in networking. They want to be everywhere! With the help of these acquisitions,
the company is turning into a truly diversified powerhouse.

Here are Broadcom's business units:

- Cable Set-Top Boxes Products

- Cable Modems Products

1/3
- High Speed Networking Products

- Home Networking Products

- Direct Broadcast Satellite and Terrestrial Digital Broadcast

- DSL (Digital Subscriber Line) Technology

- RF & Advanced Mixed Signal (Bluetooth technology)

- Optical Networking

- Software products

STRATEGIES THAT SET THEM APART

One of the strategies that sets Broadcom apart from its competition is the fact that the
company is making a bet on the technology based on the CMOS (Complementary Metal
Oxide Semiconductor) process. This technology allows for Broadcom to design chips that
can be made in volumes and cost cheaper than those of their competitors. Just like Intel,
Broadcom understands they need to turn their business into the commodity-based
business and put emphasis on cost-effectiveness.

Another important approach that Broadcom decided to follow is having a fabless model,
which means the company outsources its production. The company has long-term
contracts with some of the biggest foundries in the world such as Taiwan Semi (TSM) and
Chartered Semi (CHRT) in Taiwan. In fact, it was thanks to Broadcom's booming
business, that Taiwan Semi was able to become the number one foundry in the world.
The location of the foundries gives Broadcom a competitive advantage in terms of price.
Fabless way helps increase margins and lows the company's reliance on internal
manufacturing efficiencies. As for Broadcom, they like to concentrate on the design and
selling their products.

DEVELOPMENTS AHEAD

In the next few months, investors will be anticipating more news from Broadcom.
Announcements from the company in the areas of optical networking, Bluetooth
technology and of course home networking will be welcomed with interest. Broadcom
should also be emerging as a leading player in the emerging Gigabit Ethernet technology
and voice-over-IP (VoIP). In fact, it seems there is no high growth area today where
Broadcom does not want to be a major player.

Investors are always trying to guess what company is going to be the next CSCO or next
INTC. Well, Broadcom is definitely on the list of the strong contenders.

MAYA SOBOLEV at

Chartpattern.com

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 November 2000

Hello out there stock fans. Just another lack luster day on the NASDAQ as everyone
braced and prepared for earnings from Cisco Systems (CSCO) which were released
shortly after the bell today. Earnings came in a penny better than expected at .18 and
revenues were at the high end of expectations at over $6.4 billion.

In the conference call CSCO's CEO John Chambers said broadband was just a tad weak,
which sent stocks down hard in after hours trading. Juniper Networks (JNPR) for
instance, closed the day at $218 and quickly dropped to $205 before Mr. Chambers said
earnings and growth for next year would be ahead of expectations. Most stocks quickly
moved back up to just under where they closed, but as of this writing there are still off
their closing highs by a few points including CSCO. Volume on most is light in after hours,
which normally is considered good.

In other stock action a number of stocks listed here last week moved up well from their
buy points including a stock listed here a number of times. J N I Inc. (JNIC) is in the still
strong storage group and its moving extremely well but very extended. In other trading
action CIEN moved back up to its trend line where it promptly sold off. As you know I
showed this line as resistance, therefore this would have been an ideal time to sell this
stock.

In this very choppy market working support and resistance lines or pivot points maybe to
ones best interest. This market seems ideal for short-term trades in my opinion.

Tonight I have a few charts that have set up with some descending trend lines. Here they
are.

1/3
2/3
Here are some charts that suggest higher prices to come. AKAM at $58, AMRI at $59 and
ELNT at $ 124.

In a few days Maya will have a report on Foundry Networks (FDRY) which seems to be
turning the corner with new products.

With CSCO's report behind us, Let's hope the market can move ahead. We may get a sell
off tomorrow with a relief rally on Tuesday after the election. We'll see.

I'll see you folks tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 November 2000

Hello out there stock fans. A seemingly mild day on the surface of the markets today as
the world awaits the outcome of today's presidential vote. The usually wild swinging
NASDAQ closed down just under a half point while the DJIA closed down 25 points.

However under the clam havoc was being strewn among once strong chip stocks, fiber
optic and a few networking stocks. Broadcom (BRCM) and P M C Sierra (PMCS) took
discounts today that are all too familiar in many technology stocks lately. Please read
Maya's reports below for more details on the stocks that were down hard today and why.

In other areas of the market, network storage stocks continue to move ahead and seem
to be one of the strongest technology sectors of the market today. Stocks like Veritas
(VRTS), Network Appliance (NTAP), Brocade Comm (BRCD) and J N I Corp. (JNIC) have
all moved well over the past few days.

Two of last night chart selections moved well with Nuance Communication (NUAN)
moving across that trend line with a $10 gain. Mercury Interactive (MERQ) moved up $8
and crossed the trend line too and both had good volume which is very positive. In as far
as descending trend lines go, it's common for stocks that break these descending trend
lines to come back and once again test these lines before these stocks move away and
continue their upward trend. A retest can often be another buying opportunity as the stock
touches the line once again.

Here are some charts that suggest higher prices to come on these selected stocks with
my technical buy points. HAND at $91, VRTS AT $160, NETE at $78, PDLI at $ 143,
ABGX at $94, IMGN at $42, PHCM at $109, PLCM at $68, MWAV at $31 FMKT at $54
and FDRY at $91.

Here is a chart of a stock that had very good earnings this past October and bucked a
double top formation in a bad market. Seibel Systems (SEBL) is the stock.

1/4
FROM CISCO's CONFERENCE CALL

Cisco Systems (CSCO). Market Cap of $399 Bil, Shares Outstanding 7096 Mil, Float
6954 Mil, 52 wk high of $82. Last Q revenue $6.52 Mil, up 14% from previous Q, up 66%
from year ago.

The market was waiting. Everyone was waiting for the bellwether Cisco to report
earnings. Many viewed this CSCO earnings report as an inflection point for the market -
but no one knew in which direction it was going to go. Some like Gail Dudak of UBS
Warburg thought it might lead the NASDAQ lower to break the critical 3000 level, while
others like Tom Galvin of DLJ were predicting 4500 by the year-end.

Investors, however, didn't seem to agree with either of the groups just yet. They wanted to
hear from Cisco first. Last week Cisco's stock dropped to as low as $45 after it was
downgraded by the influential Lehman Brothers analysts. The analysts lowered their
target price on Cisco from $90 to $60-$65 saying that the stock had no upward potential.
They commented that it was just unrealistic for Cisco to keep growing at this terrific 50
percent rate. Lets just hope it can grow at 35 - 40 percent next year, many started saying.

So yesterday the long awaited day came. The tech giant reported its earnings one cent
ahead of expectations, but the most important piece of the news was their so-called
conservative guidance for next year. The networking equipment maker stated they expect
to grow its sales by 50 to 60 percent in fiscal year 2001 over 2000. Cisco also sees fiscal
2001 earnings per share 2 to 5 cents higher than current analyst estimates. Published full
year consensus forecasts are 75 cents per share, according to First Call.

2/4
Many weeks ago, Sanford Bernstein started attacking the broadband equipment vendors
and especially those in the optical space. The company researchers claimed that they
surveyed carriers all over the world and as a result saw carriers planning for significant
decreases in capital spending. During the conference call, Cisco's CEO seemed to
answer that question as well. They said that if there were a slowdown in spending, it
would mainly occur in the legacy equipment such as circuit switching, which Cisco does
not sell. What's more, carriers often have a tendency to increase their spending budgets
as the year progresses. As for Cisco's optical division, it grew at a brisk 40 percent
quarter over quarter (compared to 14% overall revenue growth) and 550 percent year
over year.

What about the concerns over Cisco's European sales and the impact the weak Euro was
going to have on the company? In their conference call, the company's management
noticed they were hardly impacted by the economic situation over in Europe and they had
a healthy revenue growth in all geographical areas.

But do not get the idea that the Cisco report was flawless. They were a few significant
blemishes. First, the company warned that their gross margins would be declining over
time. Second, they said that the service provider sector sales were growing at a slower
pace than the enterprise sales (luckily, most of Cisco's business comes from the
enterprises). Thirdly and most importantly, the inventory buildup was high and is expected
to stay at high levels.

Because of inventory buildups and softer sales to telecom service providers, Cisco's
suppliers are now believed to be under the risk of slower demand for their products. On
the conference call, Cisco said that it would attempt to reduce its inventory level over the
next two quarters. As the investors saw today, stocks of companies such as Broadcom
(BRCM), PMC Sierra (PMCS), Applied Micro Circuits (AMCC) and a host of other
communications chip companies were severely punished because of those concerns.

On the other hand, the news of the strength in the enterprise market was helping stocks
like Foundry Networks (FDRY) and Extreme Networks (EXTR) which share that booming
market with Cisco. Read about those companies in our upcoming reports.

Overall, Cisco's conference call had a confident optimistic tone. Now the hope is that
stocks in the networking and optical sectors can gain a similar confidence that was
displayed by this bellwether management.

But for now - the indecision continues.

Daniel J. Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 November 2000

Hello out there stock fans. Just another bloody day on the NASDAQ as stocks headed
south in a hurry at the open today. There was no volume in the first few minutes of the
trading day, which suggested to me that no one was eager to buy or own stocks

Momentum players of all types took their cue and started selling quickly. Stocks in all
groups came under pressure including Brokers, financials and of course all tech stocks
regardless of market cap including all the bellwether big caps like SUNW, ORCL, INTC
and CSCO.

This is without a doubt the worst bear market I can ever remember and it seems the end
may not be near for sometime to come. So far this NASDAQ bear is the worst since the
great bear market of 73-74 which was much deeper and lasted nearly 2 years. So far this
bear is still a pup at 8 months old and growing. We may not see a turn around on the
NASDAQ until valuations come down and the Fed.'s start to ease interest rates. This
would not be until next year.

Let's take a look at the NASDAQ and see what it might have up its sleeve for us in the
very near future. The long slide from 4200 to 3100 would be the flagpole and the rising
channel would be the flag, only this time inverted. Should the NASDAQ get below 3000
level the next hard bounce should come at 2800, which was its old base high.

1/2
Today's action also broke down some chart patterns that were rebuilding very well and
given a few more days to a week these charts would have looked very good. These
include CMRC, FDRY, and a host of others. However with today's roll over action and
sharp break of trendmost of the charts are showing lower lows to come. The fiber optic
and chip stocks are in a bear market like the Internets were back in March and April. No
telling when these fiber stocks will find relief, but it seems it won't be here for sometime to
come.

Because of today's quick reversal here are some stocks that might want to go lower with
my entry point. STOR at $65, SDLI at $219, SUNW at $100, VRTS at $144, VRTX at $92,
FCEL at $71, GMST at $61, and the QQQ's at $75.

Cash is king for some time to come folks and day trading seems the only game in town
for now unless you can stomach holding shorts overnight.

See you again on Sunday.

Daniel J. Zanger

Chartpattern.com

By the way MERQ broke below its trend line which is an automatic sell.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 November 2000

IN FOCUS TODAY

NO MORE FLOUNDERING FOR FOUNDRY?

Foundry Networks (FDRY). Market Cap of $8.7 Bil, Shares Outstanding 116.9 Mil, Float
65.5 Mil, 52 wk high of $212. Last Q revenue $113 Mil, up 28% from previous Q, up 191%
from year ago.

FOUNDRY’S ABMITION

Foundry is the networking specialist. Foundry’s management understands that in order to

remain among the leaders in networking, the company needs to keep entering new fast
growing markets. Due to some recent innovations made in the Ethernet technology,
Ethernet is expanding its capacity beyond the LAN (Local Area Network) and into the
MAN (Metropolitan Area Network) and WAN (Wide Area Network). And Foundry, already
an Ethernet expert, is hoping to ride the wave of this expansion. It is on schedule to
deliver 10 Gigabit Ethernet product by Q1 2001. Dell’Oro Group conservatively estimates
that 10 Gigabit Ethernet will become a $1.9 billion market by 2004.

THE COMPANY TODAY

Foundry addresses problems of large ISPs, e-commerce websites and business

enterprises by offering intelligent switching solutions. Its list of clients includes AOL,
Microsoft, and AT&T. Foundry’s primary business is making enterprise Ethernet
(LAN/WAN) switches and traffic and content management switches (they are also called
load-balancing switches or Web switches). Foundry’s switches for LAN applications
currently represent roughly 80 percent of the company’s business. Foundry’s biggest
competitors in the area of LAN/WAN switches are Cisco, Extreme, Cabletron, and Nortel;
in the Web switches arena Foundry faces competition from Nortel (via Alteon acquisition),
Cisco (via Arrowpoint), Extreme (EXTR), and F5 (FFIV).

This year the company introduced a new NetIron product line. By doing this, Foundry
decided to go into face to face battle with Cisco and Juniper by developing this Internet
core router. The IP core router market presents an enormous opportunity for the players.
This market is expected to grow from $2 billion in 2000 to $16 billion in 2003 (according
JP Morgan). Foundry hopes that within the next year its core router sales will account for
15 percent of total revenues and 30 to 40 percent within two years. Last quarter the
company reported that number at 9 percent. However, it is yet remains to be seen if
Foundry is able to gain any success in the area Cisco and Juniper are some of the

1/2
fiercest competitors. Juniper, for one, believes that in spite of the market size, there is
only room for just two competitors in that space. In addition, many startups like Avici
Systems (AVCI) are attempting to enter this market at the same time.

DEVELOPMENTS AHEAD

There are indications that Foundry may be gaining some traction with its new core routing
platform. There are speculations that the company may be announcing a contract with
AT&T and is in trials with several other backbone carriers.

Expect to see a several new products ramping in the next quarter and in 2001.

Watch out for the momentum growth in the core router space. For Foundry, already a high
margin company, this would present possibly an even a higher margin business
opportunity.

MAYA SOBOLEV at

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 November 2000

Hello out there stock fans. The NASDAQ continues to weaken and on Friday the
NASDAQ closed at new lows for the year. The DJIA closed down below its long-term
trend line again and now the DJIA has a lower high in place, which may prove to be
significant going forward for this big cap index.

Let’s go to the charts right now and see what these leading markets are looking like on a
technical basis. First up is the NASDAQ, then the Russell 2000 (RUT) which looks a lot
like the NASDAQ before it went lower, but the RUT chart has a more clear cut flag
formation than did the NASDAQ, then on to the DJIA. All charts are suggestive of lower
prices to come.

1/4
Since Nortel Networks (NT) reported earnings, which to many signaled a weakening
technology sector, stocks have been under extreme pressure with no let up in sight. This
market break seems quite similar to the break we saw back in the fall of 1997 when Asia

2/4
had its so-called collapse. Back then it took two full months before stocks halted their
vicious slide (October through December) and another 4 months before the bottom was
finally put in on the stocks that were under pressure.

The groups that were taking the hit back then were the hot group’s back then which is
always the case, the chip, telecom and energy stocks. Many technology and oil drilling
stocks lost 70 to 80% of their value and didn’t come back for 2 years. Many of the oil
drilling stocks are still far off their highs set back then while just a few of them are at new
highs.

So far we see prior leading stocks like PMCS, ORCL, AMCC, SLDI, JDSU, INTC, GLW,
VRSN, CIEN, and NT have already lost about half their value from their highs. With
pessimism so high right now, I doubt these stocks have seen their lows yet. Also as the
year draws to a close most of these stocks that are underwater will be the object of tax
loss selling by many individuals. This will add further selling pressure to any upside
potential.

Here are some other stocks that seem like they are going to move lower in price, NTAP,
VRTS, EMLX, RIMM, ARBA, EXTR, BRCM, SUNW and a host of other high tech stocks
including many Biotech’s.

On a more positive note, the lower these stocks get the more upside potential for us
momentum investors when the market turns around. Recent major NASDAQ bottoms
from which stocks have had big runs from are the bottoms of 1990, 1994 and 1998. Many
call this the 4 year market cycle as you can clearly see. However 2000 is going be a
major bottom for the NASDAQ and we might not see the ultimate bottom until 2001 if the
NASDAQ keep sliding like it is.

After the market rests some 9 to 18 months from its highs, history shows us that it can
have a big move once again. I for one will be waiting with bated breath for the next big
market move. My guess it won’t come until the Fed.’s decide to cut rates, which could be
sometime next year.

For now its seems its going to be very small moves of 1 to maybe 3 days on the upside
and one to three days on the downside. We’ve also seen that holding stocks over night is
like playing Russian Roulette. Therefore it maybe in ones best interest not to own stocks
overnight and avoid dip buying for now.

Remember the market already has three down days in a row so a few up days should be
with us shortly. This means shorting stocks come Monday may or may not be in your best
interest.

For the very active day trader, these charts suggest these stocks maybe headed lower
with my technical entry points. MVSN at $65, SCMR at $58, SEBL at $95, SAPE at $28,
MLNM at $70 as this stock is going to break its 50-day MA. MUSE at $130, JNPR at
$169, JDSU at $68, IDPH at $198,

3/4
Here is a head and shoulder chart pattern that many other stocks are exhibiting right now.

As the holidays are upon us, I plan on using this time for some of my vacation time. I will
get back to you with a schedule as soon as possible.

See you tomorrow and cash is king in my book.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 November 2000

Hello out there stock fans. More fun on the NASDAQ today with stocks gapping down at
the open and heading south in a big way all due to Hewlett Packard (HWP) missing
earnings due to internal controls even though revenues matched or beat consensus.

This big cap tech stock made its revenues numbers with super growth in many areas, but
can’t control or project costs to do so, therefore every tech stock in town needs to take a
hard discount as a result of their internal problems. Bear market behavior to be sure and
why it’s best to be in cash at the start of every market day.

Actually yesterday’s charts forecasted today’s market action and HWP problems and
yesterday’s Barons article about the bubble in the Biotech’s were merely the impetus to
get the ball rolling. The Biotech’s were a little late to the bear market as I’ve shown a few
charts recently of some topping action in the Biotech index (BTK). They refused to come
down until this weekend’s article moved them down with force today.

Today’s breakdown in the BTK, which was the last bastion of strength or leadership in the
NASDAQ can often be seen near market bottoms or must happen before the bear can
end. This was the case in the bear market of 1998, which didn’t end until Yahoo and
Amazon finally broke down. This occurred about 6 weeks prior to the ultimate bottom
back then and four weeks after the start of the bear action.

Bottoms can’t be made in a bear market until all the chiefs have thrown in the towel, and I
do believe all the chiefs have done so as of today. Now its just a matter of time before
capitulation sets in once again and maybe some rounded bottoming action or horizontal
work at lower levels.

Today’s NASDAQ action did bring the NASDAQ back down to one of the better support
areas which was the 2850 to 2900 were the NASDAQ bounced back to be positive for a
short period of time later in the day. This however didn’t hold and the NASDAQ closed
down 62 points for the day with the NASDAQ’s first close below 3000 in about a year.

Many chip stocks and most of the fiber optic stocks tried to rally mid day and many went
positive for the day, but seems no one wanted to hold stocks over night. This potential
short term positive turned bearish once again as stocks sold off fast in the last hour with
many dropping $10 quickly, but they still closed well off their lows for the day.

Many of the stocks that broke down two weeks ago namely the fiber optics like CIEN and
SDLI and others are starting to show some horizontal work with potential double bottoms.
Should these bottom areas hold, this could be positive for some short-term trades. Lets
take a look at their charts to see what they look like.

1/4
Also Cisco System (CSCO) may have an inverted head and shoulders, which is not so
strong looking in its present formation yet, but still could be a positive short term.

2/4
Also somewhat positive short term is that all the quoted technical analysts on CNBC are
calling for a much lower NASDAQ with lows somewhere around 2200 to 2300. Some are
even calling for a lower NASDAQ while some are saying the lows could be in around
2650.

I’ve found that when this TV station brings on many analysts to feed the publics appetite
proclaiming anything will go up or down then short term sentiment is set to change in the
opposite direction. Could the stage be set for a turn around base on this indicator? Stay
tuned.

On Wednesday the Fed.’s have another FMOC meeting and hopefully they will at least
change their bias to neutral from a bias to tightening. This along with so many down days
on the NASDAQ could induce a small rally if the bias does in fact change.

In a day or two more charts will set up and I will have some more picks. See you
tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 November 2000

Hello out there stock fans. My CNBC indicator comes through in grand style once again
along with positive earnings from Vodaphone and an announcement from stock guru
Joseph Abby Cohen that you should overweight tech stocks, sparked a very nice break
away gap rally in most tech stocks and the NASDAQ. The NASDAQ index shot up 171
points to close above 3000 once again. It too has a breakaway gap, which is often
suggestive of power.

Most stocks continue their YO YO type behavior with wild swings up and down which is
creating very sloppy charts. More often than not these sloppy charts are suggestive of
liquidation and not accumulation. You folks may remember my letter on this subject with
Applied Materials (AMAT) back in June 2000 when AMAT was at $85 and now its down to
$45. Let’s take a look at some of these wild looking charts.

1/4
After the bell today two stocks that reported earnings are on the move. Sycamore
Networks (SCMR) is up over $7 with slightly better than expected numbers and a good
forecast about business for next year. Network Appliance (NTAP) reported about the
same scenario and is getting a hair cut of $10 in after hours down to $86.

Fiber optic networking stocks in the same group with SCMR, like Juniper Networks
(JNPR) and Ciena (CIEN) are up $2 to $3 in after hours trading, while storage networking
stocks in the same group as NTAP are down $3 to $4. I might add that so far Nortel
Networks (NT) is the only fiber optic or telecom products stock that has mentioned it will
miss numbers going forward while all of them have said the opposite.

Most charts are so broken up as you have seen above many won’t rebuild in a positive
way for months, while one or two are starting to look fine. However one or two charts
says this market is still very sick even though we had a stellar one-day gain in the market.
The NASDAQ chart along with many individual charts is still exhibiting very negative
behavior chart pattern wise, and that is lower highs and lower lows

If in tomorrows Fed. Meeting however the Fed announce that they are changing their bias
to a more friendly neutral stance then this market could get a boost quickly and charts
could come around much faster. Lets hope this is the case. But until charts come back up
near old highs and go horizontal for weeks all stock will be suspect of breaking down
quickly once again should we rally further.

Here are some stocks for the active day trader and chart reader to look at with my
technical entry points that I might consider buying at. ADBE at $83, MERQ at $120,
AETH at $110, LLTC at $61, MACR at $86, CTXS at $27, TIBX at 27 and RIMM at $96.

2/4
Tonight Maya felt it might be a good thing to venture away from stocks and talk about the
economy briefly since there is a fed meeting tomorrow. On Thursday she will have report
on CacheFlow Corp (CFLO). CFLO has one of those wild looking charts too, so I would
pass on considering that one for some time even though the company’s prospects are
looking superior.

WILL GREENSPAN COME TO RESCUE?

With earnings season almost over and the latest casualty of the season, computer giant
Hewlett Packard (HWP), posting lower-than-expected 4Q results, investors are certainly
not encouraged. But HP investors don’t feel so lonely. The latest earnings quarter can
pretty much be summed up as disappointing: Intel, Nortel, WorldCom, Dell. The results
are similar all across the board with the huge number of companies reporting not so
spectacular earnings and giving their slowing earnings guidance going forward. In fact,
2001 profit growth forecast for the companies included in the S&P Technology Index has
been revised down to 19 percent from 23.8 percent, according to Bloomberg. Now that
the economy is slowing, Wall Street is worried this could lead us into something worse, a
recession. The economy may be in for a harder landing than Greenspan is trying for.

For months, Barton Biggs, Morgan Stanley Dean Witter’s leading economist, has been
saying it is never possible to achieve a soft landing in the economy. He warns that the
country could go into a recession. His latest prognosis is that the US economy will go into
a deflationary recession and stay in it for at least two quarters.

Is there a chance for the economy to avoid this grim scenario? Yes, there are chances,
and for those chances to remain in play, three main indicators need to be considered
carefully. Those indicators are productivity, monetary policy and concurrent actions
between the new US administration and the Fed.

PRODUCTIVITY

First, examine productivity. Surely, some slowdown in productivity is to be expected as

the economy cools off because productivity is in part dependent on output. However, the
latest productivity report leaves some basis for optimism. Productivity growth now stands
at 2.8 percent, which is considerably higher than the employment cost index growth. That
is exactly what needs to be seen in a non-inflationary economy productivity growth
outpacing employment cost growth. So things look quite healthy on the inflation front.

One of the reasons for productivity gains is due to corporate capital spending. However,
many corporations are cutting back their spending because they are seeing slowdown in
their revenues. With the labor market remaining tight, corporations cannot cut their
expenses on that front, in fact, they have to raise their workers’ compensations not to lose
them. Therefore, two important indicators need to be watched for: falling capital spending
and tight labor market.

MONETARY POLICY

3/4
Now onto the next subject: The Fed. The way Greenspan can help the situation is by
cutting interest rates. That is the main hope of the market. If Greenspan starts easing up,
corporations could improve their margins, in other words, breath free. But Greenspan’s
hands are tied because the economy is sending him mixed signals. It is cooling off and at
the same time risk of inflation has not disappeared.

THE UNCERTAINTY FACTOR

Another reason that Greenspan does not want to act just yet is because of the unique
situation this country has gotten itself into no one knows whom the next president of the
United States will be. Therefore, the economic policy of the new administration is not
clear. Greenspan understands that Bush’s programs are more inflationary. Bush is
proposing huge tax cuts, which will add more money into the economy and will heat it up.
This contradicts with the current Fed policy, and Greenspan will have to stay on guard of
inflation one more time. Gore’s policies are more cautious and his main goal is to reduce
government debt, which is complementary with Greenspan’s policy. Greenspan will ease
rates sooner with Gore than with Bush. But the bottom line is that it is doubtful the Fed
will do anything in the meeting tomorrow. However, if the Fed does decide to act and
remove their unfriendly comments on inflation, it could do great things for the market.

But for now let me repeat the classic expression. The market hates uncertainty. That is
the reason it keeps searching for the bottom but cannot find it. There are still reasons for
optimism though; with the economy still going strong there is a lot of money sitting on the
sidelines ready to be put into the market as soon as the economic situation clears up.

See you folks tomorrow.

Daniel J Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 November 2000

Hello out there stock fans. Stocks gapped down at the open today with that gap filling in
short order as traders hopeful of getting in on cheap stock prices in anticipation of a
Fed.’s move later in the day. However when the Fed.’s announced that its position would
not change, traders sold shares to lock in any profits quickly and prevent any loss if they
were quick enough.

The sell off was orderly, and not with great abandon, which you might consider good. It
could have been much worse with the type of aggressive selling on heavy volume that we
saw last week and on Monday of this week.

The charts of almost all stocks are still exhibiting lower lows and lower highs which still
implies that this sell off has further to go in distance and in time. There are a few stocks
like MACR, PDII and a number of medical and health care stock charts that are looking
good, but their growth rates are sub par at around 15% to 20%. Therefore you would
have to consider these stocks defensive and political in nature. In my opinion there is no
need to chase these sub par stocks.

In time high growth stocks will rebuild sound bases and nice pivot points to buy from. This
along with the political uncertainly that hopefully will be resolved soon and no more
potential bad news from earnings and we might get some decent tradable moves soon. A
few stocks have some descending trend lines that they will be up against shortly. These
will be our first buying opportunities.

After the bell Applied Materials (AMAT) reported slightly better than expected earnings
and the stock is up $1 on fair volume. They did say growth would flatten out next quarter.
Meanwhile many other leadership type stocks like SDLI and JNPR are down $3 and $4
respectively after hours. Seems the bear market is still in place. Who knows where things
will open tomorrow or which direction they will go.

Here are some stocks to look at with my entry points should the market be positive for
tomorrow. SNDK at $61, ADBE at $82, MACR at $86, SNWL at $21.

When more stocks set up I will have them for you, until then the bear is in charge so
beware.

I will see you on Sunday and not tomorrow as usual.

Daniel J. Zanger

Chartpattern.com

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 November 2000

Hello out there stock fans. The market continues it’s bear market behavior as short term
rallies quickly fade and stocks return to making fresh new lows within hours or just a day
or two. Witness Fridays’ bust of buying upon news that the Florida state supreme court
ruled in favor of Gov. Bush. Then someone from the Gore camp said something in
rebuttal and stocks quickly returned back to where they were before the news.

All of this political stuff is only overshadowing the fact that future corporate profits are
being revised downward at a very rapid pace. First Call has analysts cutting earnings
growth from 30% to about 15% in just the past few weeks for the upcoming quarter. An
engineered slowing of the economy by Mr. Greenspan & co. is finally starting to appear
yet few people are feeling or seeing the effects other than in their brokerage account. The
stock market is a discounting mechanism that usually moves 6 to 9 months in advance of
economic conditions, so the slowdown probably won’t be seen until this upcoming
summer.

Tonight I have a number of stock charts that show some stocks that may want to move
higher and some that may want to move lower. Also two charts of the NASDAQ, one
NASDAQ chart is a weekly chart of daily bars compressed to show each weeks action as
one bar. The other chart is the NASDAQ on a daily bar chart. The weekly chart is the big
picture and it shows two descending trend lines that will need to be broken to even
remotely consider the NASDAQ back in an up trend. Until then cash is king.

1/5
Here are a few highly speculative situations for the very active and aggressive day trader
to review.

2/5
3/5
These charts represent my best shots for Monday, so there are no day picks tonight.

This Wednesday and Sunday there will be no letter due to the Thanksgiving holiday.
However I will see you this Monday and Tuesday, then back on the following Monday.

4/5
Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 20 November 2000

Hello out there stock fans. Downgrades today of leading networking stocks sparked a
massive sell off at the open today in all tech stocks in all groups including Biotech’s. The
Biotech index was down a whopping 10% today as the Biotech index broke support at
630 and quickly dropped 65 points. Networking stock Juniper Networks (JNPR), which
was one of the targeted stocks of the downgrade, gapped down some 28 points at the
open and never came up for air.

Without question this is one of the greatest unwinding of overvalued stock prices that I
have ever seen and believe me folks, it won’t end even if the fat lady sings tonight. The
other time was last March and April’s unwinding of the Internet stocks. Of course this has
been the most overvalued market in the history of the NASDAQ from what I’ve seen. Its
one thing to have high P/E stocks in a rising earnings environment whereby they grow
into the high P/E multiplies and another story to have high P/E stocks in a slowing
earnings environment. It’s the latter of these two that’s causing all the pain now.

Lessons are learned the hard way and I for one learned them many years ago and I know
all too well how painful they can be. When leaders break down like we saw two weeks
ago as when AMCC, SDLI, PMCS and BRCM gapped down hard, I told everyone here
two weeks ago that cash was king. Many times I mentioned not to hold stocks overnight
and reiterated that cash was king. The model portfolio went to cash back in early
September. The only thing most people can do now unless you’re a very active and quick
day trader with many years of experience is to go to cash. Go to cash my stock friends,
as this hemorrhaging is not over with by a long shot.

Jesse Livermore, the most famous stock speculator of the 20’s, once wrote in his book on
the circumstance we find ourselves in today. And it’s some of the best advice I’ve ever
taken. It goes something like this "Stocks are like cars; when a car hits a brick wall it
needs to be taken in for repairs. Once repairs have been made then that car can get back
on the road for a nice trip once again". My friends the leaders and most stocks hit the
brick walls weeks ago, therefore we need to get off stocks until they can rebuild their
bases. Then we can buy them all over again. This won’t happen for months as these
stocks with their sky high P/E’s have much further to fall.

Take for example i2 Technologies (ITWO). This stocks P/E as of this past Friday was 323.
This stock has super growth to be sure, but in a declining earnings environment this P/E
is outrageous. Even in a strong earnings environment it’s outrageous. Even in the best
markets of this past decade prior to 1998, stocks with similar growth patterns sported
P/E’s of no more than 120. This stock earns a whopping .12 cents a share per quarter.

1/5
Twelve cents times four quarters is .48 cents. .48 times 100 for the P/E and you get a $48
stock. Today this stock closed at $114. This stock may have a long way go to get down to
more realistic valuations.

Here are some tick symbols of other stocks that have to come down much further before
we see real value. MERQ, CIEN, CFLO, MUSE, EMLX, IWOV, BRCD, IDPH, PDLI,
HGSI, JDSU, VRSN, BVSN, PALM, HAND, RIMM, GILD, FCEL, EXTR, ENZN, EXAR,
VRTX. And the list could go on for another 300 stocks. This is what the market is doing
now and its not going to end until valuations come down. This is the new game that the
street is playing right now and not the game that we’ve seen over the past 2 years.

Aside from the P/E factor, technically we have seen many stocks go far below their lower
trading band and no buyers have emerged. I have presented here on numerous
occasions over the past two years this same scenario. And when this happens it has
always foretold a very sick market and prices have always continued much lower for
some time to come. Since this happened again today on many stocks this is highly
suggestive of much lower lows to come. Let’s look at a few stocks to see what I’m
referring to.

2/5
Here is chart of the NASDAQ as of today.

Also BRCD had a fine decline today from the head and shoulders formation that I showed
you in last night’s chart. It was down some $31 today and I for one caught about $17 of
that down move. CIEN, which was in last night charts gapped down today. It like many

3/5
others broke below a small support area and became a short subject. No pun here. I for
one bought the gap down to go long as a gap down is often filled to the upside. This stock
could have reversed and bolted through last nights buy point which was my thought.
However after owning this stock for about 5 minutes it got very sluggish as the market
continued lower. I quickly sold the stock and a few minutes later sold short the stock. The
stock held tough all day before finally breaking down late in the day below support. Here
is what I was looking at.

Here is a chart of one of the last stocks to break down and it looks to me like it has much
further to fall.

4/5
That’s it for tonight. See you tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. By the way one of my brokers told me there were lots of margin calls today and just
as many due tomorrow. This should add pressure to the NASDAQ and its already beaten
down stocks.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 November 2000

Hello out there stock fans. The assault on stocks and stockholders continue as the
NASDAQ made fresh new yearly lows today on fair volume. Today’s assault was mainly
targeted at the Internet stocks with the likes of former market leader Yahoo! (YHOO)
which gapped down at the open and lowered some 15% or over $7 on very heavy volume
on a downgrade today. This is YHOO’s lowest close since October 1998. Other Internet
stocks that came under pressure were Tibco Software (TIBX) -$10, and Inktomi (INKT)
-$5. The Goldman Sacks Internet index (GIN), which hit a high this year of 795, today
stands at a meager 235.

There is clearly no stock worth owning overnight as Russian roulette continues to be the
game of choice for the street right now. For the past two years you couldn’t possibly have
a short position overnight due to fear that your NASDAQ stock would gap up $10 to $30
the next day and run. Today the shoe is on the other foot as leading stocks continue to
gap down at the open and quickly collapse over the next few days. No telling when this
horror for the "investor" will end.

After the bell today CacheFlow (CFLO) came in with spectacular earnings and the stock
quickly dropped $17 in after hours trading to $59. This is on the heels of a late day drop
of $15 after being down only $5. Just another opportunity to throw the baby out with the
bath water if you ask me. Other stocks with the potential to have this same occurence
upon release of earnings are Brocade Comm. (BRCD), which is due to post earnings on
the 29th of November and next month Ciena (CIEN) that is due to post around the 10th of
December.

I will say that the NASDAQ and its stocks are deeply oversold right now and a bounce
should be near soon. However it’s been pretty oversold for a week or so and nothing yet
except severe downside pressure. Tomorrow should a day of light holiday trading. No
charts have set up for active traders as of yet, but maybe when I return on Monday of
next week some charts will have improved. Until then have a happy Thanksgiving. See
you on Monday of next week.

Now here is a report from Maya on another money losing company that the street is
trashing right now, but this one could emerge as a leader in a few years. Do not buy this
stock, as there is no trend line or pattern to buy from.

THE AIR AETHER BREATHES

Aether Systmes (AETH). Market Cap of $3.2 Bil, Shares Outstanding 39.1 Mil, Float 16
Mil, 52 wk high of $345. Last Q earnings $-0.77. Last Q revenue $16.2 Mil, up 50% from
previous Q, up 989% from year ago.

1/3
When one wireless data company came up with a name for itself, it raised the bar in
terms of expectations high. In Greek mythology, Aether means "air breathed by the
Gods." Today Aether is trying to live up to its lofty name. It wants to make its solutions as
necessary as the air to the wireless booming sector.

FROM WIRELESS FINANCE AND BEYOND

The four-year-old Maryland company started out in the financial sector by providing
software to financial institutions that allows them to offer secure online brokerage,
banking, e-commerce services and other financial information on Internet-enabled
wireless devices. Aether’s financial clients include Schwab, Reuters and Morgan Stanley
Dean Witter Online.

As if the financial sector was not big enough of a prize for Aether, the company has been
on a $2 billion shopping spree since it went public in the fall of last year. The acquisition
strategy has been very smart with each purchase falling into a different wireless data
market niche and allowing Aether an entry into a new exploding market.

As a result, Aether reemerged as a broadly diversified company and aiming to become

the dominant player in several vertical sectors of wireless data not strictly including
finance but also transportation logistics, healthcare, emergency services, mobile
commerce, education and others. For example, Aether’s latest pursuits has been Mobile
Government, which focuses on civil employees such as police and fire personnel
providing them with constant access to database information using handhelds.

The company’s biggest gains currently come from its Scout software. ScoutWare
software provides connection between enterprises and the handheld devices and allows
for remote and mobile workers to exchange information with corporate databases and the
Internet, providing them with the tools they need in both the Palm OS and Windows CE
environments. The global market for enterprise-class wireless solutions is estimated to
reach $35 billion by 2003.

Aether’s joint venture with 3Com has produced OnmiSky, a company pursuing
opportunities in wireless e-mail, Internet access and other electronic transaction
applications for Palm handhelds. Aether is also gaining momentum with hosting
Blackberry services where Aether manages activation, service and support for the
consumers using the wireless email-enabling handheld device made by Research in
Motion (see earlier report on RIMM).

LOTS OF CASH BUT LOTS OF COMPETITION TOO

Aether is armed with $1.2 billion in cash raised from this year’s secondary offerings. It is
likely that the management will keep up the fierce pace acquiring and investing in
companies that will strengthen its competitive position even further. This rich company
can easily continue funding its internal and external projects for the next few years.

2/3
Betting on too many sectors it is likely that Aether will eventually have to exit out of some
of the areas where it will be outpaced by other competitors and will eventually
concentrate more narrowly in the areas where it will be able to gain it’s strongest
expertise. Its growing list of competitors includes OpenWave Systems (OPWV) previously
known as Phone.com (PHCM), Metricom (MCOM), and 724 Solutions (SVLX). From the
competitors Aether has today, no one can match Aether’s power. So this company is
definitely worth watching after.

DEVELOPMENTS AHEAD

Aether is losing money in an Amazon-like fashion, with no end in sight. It remains to be a

question of how long investors will stay patient with Aether’s inability to turn in a profit.
The losses are expected to continue at least well into the next year.

Oracle, IBM and America Online among many others has indicated their interest in
getting involved in the wireless data markets that would threaten Aether’s leadership
position.

Watch out for capital spending patterns in the wireless space. Capital spending is just as
important for wireless players as it is for networkers and fiberoptics.

To learn more about the company go to Http://www.aethersystems.com

Daniel J. Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 November 2000

Hello out there stock fans. A very nice rally on light holiday trading volume last Friday
produced a breakaway gap on the NASDAQ and a gain of 149 points. The NASDAQ also
closed on the high of the day, as you can be sure, shorts were getting squeezed to the
end of the day.

The rally of the past two days could’ve been nothing more than a relief rally as the
NASDAQ was in free fall since the election. Today’s rally was short lived as traders are
taking a wait and see attitude due to tonight’s speech by Al Gore. Then again who wants
to own stock overnight and potentially wake up to another Broadcom (BRCM) disaster
like we saw today.

The NASDAQ’s chart has an inverted parabolic curve similar to when the NASDAQ was
going up to its record that ended in March of this year (Turn tonight’s chart upside-down).
Often during such runs as now, you have pullbacks to break this force which can more
often than not be just temporary.

However the market could easily continue to rally with the oscillators at deeply oversold
levels and the put to call ratio favoring puts which is a good contrarian indicator. And if Al
Gore for some reason concedes the presidential race tonight we could be in for a sizable
rally tomorrow.

Longer term tech stocks are still troubled by an earnings slowdown that as of now is still
an unknown factor as to how much earnings will be impacted for the next few quarters. Its
going to be hard to rally stocks in a meaningful way until there are signs that the economy
is or about to expand.

Technically a few stocks are trying to hold their ground, which in turn causes bases to
form. A number of stocks are starting to look good but its anybody’s guess what might
happen when they try to get up and run. These stocks are EXTR, CIEN, QCOM, PWAV,
SAWS, GENZ, QLGC and a few others. Unfortunately the vast majority of charts are so
broken up right now its going to take months for these battered charts to rebuild.

One positive that I see is that volume is beginning to dry up on many stocks. This could
signal the end of the broad-based sell off even though it could pick up later. Here is a
chart of Palm Inc. (PALM) which shows this volume dry up. The past two days of light
volume are due to Friday’s light holiday trading and possible light trading today due to
tonight’s speech from Vice President Gore.

1/3
Tonight let’s look at the NASDAQ and its near record bear market chart. Hopefully we’ll all
look back in a year or so and never forget what a terrible mauling we’ve been through.
The bright side is these types of bears only come around about every thirty years or so.

There are no other charts or day picks until things consolidate further.

2/3
See you tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 November 2000

Hello out there stock fans. Gore chose not to concede the election last night followed by
today’s weak durable goods orders, a falling consumer confidence report and word that
there is more slowing in tech land all combined to give us another clobbering of stocks on
the NASDAQ today.

The NASDAQ closed down another 145 points today to a new yearly low of 2734 and
closed on the low of the day. As you know a close on the low of the day is more often
than not followed by further downside action tomorrow. The NASDAQ once again is close
to breaking below its lower trading band which usually suggests a reversal day should be
here soon. How exciting; a reversal day.

So far the selling we are experiencing is constant on the majority of stocks through out
the day. No signs of panic selling of the likes we’ve seen at numerous other bear market
conditions. Like the lows of the Asian crisis in 97 and the lows of the Russian crisis of 98.
Maybe that’s why selling is like it is as many people have sold the steep declines only to
see their stocks come back. That or John or Jane Q. Public has no stock left to sell.

Also I can still find a number of those who want to catch a falling knife. I found two people
today that wanted to buy CIEN and BRCM. Two falling bricks while the market is clearly
showing us that this stuff isn’t working anymore. Until all this has changed I doubt we will
get to the bottom.

By the way on a measured move off the chart patterns, I have two areas that we should
bottom on a technical basis. One is around the 2500 area and the other is a more
frightening 2200. Maybe tomorrow I will get into those charts for you. This of course
would all change should the Fed have a sudden change of heart on interest rates.

Tonight I have a lot of charts of potential short plays. So let’s get to them. Well of course
anything that trades on the NASDAQ is a short in this market.

1/8
2/8
3/8
Today we saw Brocade Comm.(BRCD), a prior pick here with its head and shoulders at
much higher levels, having a tough go of it today as it was down over $32 at one time
today to an intra-day low of $155. This stock reports earnings after the bell tomorrow and

4/8
seems like everyone wants out in a big way before earnings as volume today was near
record levels. This stock still trades at a P/E of over 400. Could have further to go if you
ask me. Do you think this stock will go up tomorrow?

Tonight I have a chart of the once great and mighty Broadcom (BRCM), and what an ugly
chart it is. This stock has had one of the greatest runs in this bubble bull market and now
institutions that held vast quantities of this stock can’t get out fast enough. This is one of
the problems with a stock that is heavily owned or over owned as I say. The breakaway
gap down was your indication that this stock was in big trouble and your initial exit point.

5/8
Tonight Maya has a report on Bluetooth technology, which I knew very little about until
today. Seems this is good stuff and we’ll hear much more about it in the coming years.

BLUETOOTH

If you do not know what Bluetooth is, it may be worth taking a closer look at this much-
hyped wireless technology. Originally developed by Sweden’s Ericsson, Bluetooth is
named after a Nordic kind legendary for uniting Scandinavia. Bluetooth creators think big
too. Their idea is to unite personal wireless devices with each other creating a Personal
Area Network (PAN). Bluetooth will allow cell phones, personal digital assistants (PDAs),
personal computers and any other device to share data between each other without
wires. They will communicate with one another via short-range radio waves, 2.4 GHz to
be exact, which does not have to be licensed. And unlike infrared-enabled devices that
have to be in one another’s line of sight, Bluetooth peripherals can communicate through
walls, briefcases, and pockets. However, there is a distance limitation, which is around
30-40 feet. The range is good enough for most home and office use.

POSSIBLE APPLICATIONS

So what will this technology actually do for me? Everyday tasks can be made easier with
Bluetooth. Useful for business applications, Bluetooth could allow laptops and desktops to
share files without the need for a Local Area Network (LAN). At home, your cell phone
could open your garage door and program your VCR. It will be possible to send digital
images via a mobile phone from a Bluetooth-compliant digital camera. Car manufacturers
are making plans to install hands-free car kits that will allow users to keep their hands on

6/8
the steering wheel while conducting calls. And in the not so distant future, your phone
could act as a wireless credit card. The phone would store your credit information, which
it would send to a Bluetooth receiver in the cash register at a store, and when you are
ready to check out, you would simply press confirm on your phone and you are done.

Soon all cell phones will have Bluetooth chips built right into them. Also, notebooks and
desktop computer manufacturers are planning to start integrating the chips right into their
products. The good news is that regardless of what types of brand of cell phone, PCs, or
handheld computer it is, they should all be able to talk to one another.

PLAYERS - ALMOST EVERYONE BIG

The potential, although quite a few years off, is huge. So almost everyone wants to get an
early start on this technology. Ericsson picked up on the idea in 1994 and was later joined
by Nokia, IBM, Toshiba and others. The players then formed Bluetooth Special Interest
Group (SIG) which today consists of hundreds of members and includes Microsoft,
Motorola, Lucent, 3Com, and Wind River Systems (WIND) etc. Virtually any big tech
company has shown an interest in Bluetooth. It’s too early to talk about leaders although
the field already seems crowded.

Of course, many chip companies are getting heavily involved as well. Intel (INTC), Texas
Instruments (TXN), National Semiconductor (NSM), Broadcom (BRCM), Conexant
(CNXT) are among the biggest backers. Some of them are already commercially shipping
out their Bluetooth chips.

By 2001, the market for Bluetooth chips alone should total about $1 billion estimated by
Cahners In-Stat Group. IDC says the US will ship 103 million Bluetooth-enabled devices
in 2004, 450 million worldwide. If the technology proves to be successful, more and more
devices will be built with Bluetooth inside, not just cell phones, but refrigerators and
televisions. Cambridge Silicon Radio Company predicts there will be 50 Bluetooth
devices in every home by 2007.

Momentum seems to be building behind Bluetooth, with more than 40 companies’

showings of their Bluetooth devices during Comdex in Las Vegas this month.

QUESTIONS TO ANSWER

Security is a major concern for anything wireless. Bluetooth has a few security issues to
be worked out as well. During tests, Lucent’s Bell Labs recently detected a major flaw in
Bluetooth system where eavesdroppers could listen in on the digital exchange of data.
The researchers are now recommending on changing the standard.

While most technical problems (except for security) are being overcome, the biggest
potential barrier to the technology widespread adoption right now is its high cost. Those
prices bite!

7/8
Another question Bluetooth backers will have to answer is the question of interoperability
with competing and matured wireless technologies, such as wireless LANs and HomeRF.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

8/8
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 November 2000

Hello out there stock fans. Another very steep sell off at the open today with many stocks
rocketing down $10 to $18 in the first few hours of trading. Stocks like i2 Technologies
(ITWO) and Check Point Software (CHKP) moving sharply lower and far below their lower
trading bands as sellers continue to dominate the landscape on the NASDAQ with
reckless abandon.

Today’s 121 point sell off put the NASDAQ below its lower trading band again. As we've
seen here often when this happens, short-term rallies ensue to lift the NASDAQ back
above this band for a day or two and sometimes more. In the last 45 minutes of trading a
powerful surge in volume lifted the NASDAQ about 90 points and with it many stocks
moved up $5 to $8 off their lows of the day.

However after the bell today Gateway Computer (GTW) and Altera (ALTR) pre-
announced that earnings for the 4th quarter would come in well below expectations with
GTW saying sales will be slow for the next year and a half. Even though Brocade Comm.
(BRCD) announced better than expected earnings and a 2 for 1 stock split, many tech
stocks including ALTR and GTW are down sharply in after hours trading. Some as much
as $12 like P M C Sierra (PMCS). Looks like another tough day at the office tomorrow
stock fans.

Tonight I have a chart of the NASDAQ showing what is called a measured move. Here we
take the price intra-day at the high point of the move and then the low for same move. In
this case the high was 4259 and a low of that move was 3026. Subtract 3026 from the
high of 4259 and you get 1233. Now we want to subtract this 1233 from the reaction high
which in this case is 3535 and you get a potential move down to 2302. In essence the first
move will equal the second move. Only time will tell if this happens fully, but many times
I've seen this happen.

1/2
No charts are set up due to today’s move down and to be sure, stocks will be gapping
down at the open tomorrow which would make shorting almost impossible. Hopefully
some stocks will set up by Friday and I’ll have them in Sunday’s letter. See you Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 December 2000

Hello out there stock fans. A potential bottom on the NASDAQ late last week and now I
see many stocks are starting to set up or consolidate with some potential trading buys
nearby. Also the Russell 2000 index is poised to break its long-standing trend line that
has controlled this index for a long time. A major index breaking out is very positive for
the health of the overall market going forward.

There are many charts to show tonight so lets get to them as that what we are all here for.
First up is the NASDAQ. Here you’ll see near record volume as the NASDAQ hits and
then bounces off the lower trading band and lower trend line.

Here is the Russell 2000 and you can see it’s on the verge on breaking out of its long-
standing trend line.

1/6
Here is one of the leading stocks of the bubble move. It has always acted like that bunny
rabbit on TV as it seems like it never stops going and going. In fact it’s on the move going
again.

Here are some strong stocks that have set up some fairly good charts. I can’t say that
they are leadership type stocks or stock that I would want to own other than MERQ. It will
take some time for the better stocks to rebuild but they are coming around fast so I

2/6
suspect in the next few weeks they should be lots of selections to come.

3/6
4/6
There are so many stocks that have set up for day traders to look its hard to narrow them
all down, but I will list many of them with my technical buy point. AVIR at $68 and this
stock is back breaking out into new highs after breaking down from that cup and handle I
showed you last week. ARBA at $57, BEAS at $76, CHKP at $139, ISSX at $79, ITWO at
$57, JDSU at $48, JNPR at $129, MVSN at $70, NEWP at $83, PDLI at $97, TIBX at $49,
VRSN at $82, ABGX at $63.

By the way stock fans; Emulex (EMLX) is back and nearing new highs. After a few more
days of rest, its chart should set up fully.

I have added at the bottom of every letter a small reminder of how valuable the model
portfolio has been over the past two years in market timing and risk reward evaluation of
the overall market.

I will be back on Monday next year and lets hope next year is far more profitable than this
past year.

Daniel J. Zanger

Chartpattern.com

P.S. By the way Fuel Cell (FCEL) is on the move again and broke out today.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 December 2000

Hello out there stock fans. The NASDAQ had a very tough day on Wednesday with a
powerful break away gap to the downside on near record volume with declining volume
swamping upside volume by about 10 to 1. This type of volume action is capitulation in
nature. One of the more positive items today is the VIX index, which rose to 35 today.
Market bottoms are usually put in when this index gets to around 40. Here is a chart of
this index that tracks put to calls.

Even though today’s move on the NASDAQ composite was modestly positive, most of the
prior leadership stocks are still falling hard with stocks like PMC Sierra (PMCS) caving in
$14 on heavy volume, Broadcom (BRCM) down $12. Seems tax loss selling and selling
by institutions that don’t want to show tech stocks in their portfolios by years end still have
the upper hand.

Tech stocks are getting very cheap in relationship to their growth rates. However no one
knows for sure just how slow the economy is or will get in the coming weeks and months.
Until this uncertainty gets a little clearer stocks are unlikely to get up and move. I do know
one thing for sure, when its time, leadership stocks will set up nice bases and then we
can see what they do when they break out and try to run. Until then the model portfolio
will stay in cash.

1/4
Here is a chart of the NASDAQ right now and we see that it is below the lower trading
band for the first time in three weeks. The NASDAQ is also at the lower channel line. If
these two areas hold then the NASDAQ might be able to turn up for a few days. A trading
rally if you will might happen.

Stocks have moved so low in the past few days that there are no charts to show right
now. Maybe after Christmas we will have a few to show. I do know that RIMM worked out
well on its move down out of the inverted pole and flag formation that I had on Tuesday
dropping some $15 after the break of the trend line.

In order to keep our chat room focused and to keep out the noise we are implementing
passwords for the Chatspace server. For those clients active in the chatroom (or who
wish to be) we would like to get 2 items of information:

1) A nickname to use for login and identification while on-line

2) A 6-8 letter password for login.

We would like to get everyone's nickname and password by Jan. 1, 2001 so we can
implement for the coming year. Thanks to all of our chat members who provided input for
this new system.

I wish you all the best during the holidays and I will be back for one letter only next week
and that will be on Wednesday.

Tonight MAYA has prepared a report of Micromuse (MUSE). This stock is breaking down
like all the others so we suggest passing on owning it or anything else right now.

2/4
MICROMUSE KEEPS NETWORKS AWAY FROM THE BLUES

Micromuse Inc (MUSE). Market Cap of $3.2 Bil, Shares Outstanding 34.7 Mil, Float, 33.7
Mil, 52 wk high of $210. Last Q earnings $0.13, up 30% from previous Q, up 113% from
year ago. Last Q revenue $41.1 Mil, up 25% from previous Q, up 114% from year ago.

Capital spending in the telecommunication sector has been increasing at a tremendous

rate in the last few years. Carriers and service providers were building networks and
buying new advanced hardware to provide bandwidth and new services. Now the
conditions have changed "competition, price wars, slowing economy" Telecoms are now
faced with a life and death question of cost-efficiency and forced to look for ways to
monetize the expenditures they have recently put into their networks. Now their main
priority is to make investments into the products that would radically improve performance
and functionality of their already existing networks. One of the best ways to do this is by
using special network performance software products.

NOT SO MICRO

The fastest growing company in the performance management segment is Micromuse

(MUSE). Micromuse’s Netcool-branded suite of software products monitors networks for
events in realtime. Netcool then reports events and problems in customizable graphical or
text format to network operators so they can see what is happening inside the network
and can respond to fixing problems immediately before an outage in service is caused.

Micromuse is a leader in sales with $165 million of total historical license revenue.
Morgan Stanley Dean Witter estimates the size of potential market opportunity for
Micromuse to be around $6 billion. If so, a current revenue penetration for the company
stands at only about 3 percent at this time.

EVERYONE NEEDS NETCOOL

Although Micromuse does face some competition from companies such as BMC Software
(BMCS), Computer Associates (CA), and Hewlett-Packard (HP), it maybe just enough to
take a good look at Micromuse’s customer list to see that this is the leader in its field. Its
clients include telecom firms such as Global Crossing, Internet service providers such
America Online, and large-scale enterprises such as Charles Schwab. One of the
reasons for such strong customer base is Micromuse’s distribution partnership with the
networking king Cisco (CSCO).

The driving force behind Micromuse’s stock in the fall was the company’s entrance into
the new customer categories. The company scored customers in the relatively new
market segments such as wireless with Vodafone, optical with Broadwing, digital
subscriber line (DSL) with Highway One (European DSL provider), and cable with
Scientific Atlanta.

DEVELOPMENTS AHEAD

3/4
The networks performance management segment is drawing increasing competition.
Recently Hewlett-Packard has taken steps in an attempt to undercut Micromuse’s
leadership position. The company has joined together with another Micromuse’s
competitor, RiverSoft, to provide similar applications.

Just like most tech stocks, Micromuse stock suffered from worries of declining capital
spending. Capital spending slowdown remains a concern, and developments on that front
should be monitored closely. However, as soon as the telecom sector will come back to
life and carriers are able to spend more again, this profitable, well managed, high growth
company should be a market leader.

Daniel J. Zanger

Maya Sobolev at

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 19 December 2000

Hello out there stock fans. The Fed moved it’s bias from tightening to a bias to lowering
interest rates today and the market was clearly unhappy about this. Seems the market
may have factored in a rate change today and not just a change in the bias. Stocks on
both exchanges began to cave in immediately after the news was announced.

The NASDAQ after being up some 60 points finished the day down 112 to a new closing
low of the year. It also closed on the low of the day, which often leads to lower lows the
following day. The NASDAQ also undercut its prior low close with today’s close on the
low.

Bad news persisted after the bell too as Foundry Networks (FDRY) pre-announced an
earnings and revenue short fall and with that the stock was cut in half in after hours
trading. This bad news caused many other stocks in this group to move substantially
lower in after hours. Juniper Networks (JNPR) has dropped another 10 points to $104
and Extreme Networks (EXTR) took another discount giving up another $14 to $34. And
to top it all off the futures are lock limit down 95 points in after hours. Looks like another
tough day in the market tomorrow stock fans.

Today we saw IDPH break into new 52-week highs on good volume only to reverse on
fair volume. Then after the perceived bad news from the Fed.’s, the stock caved in
breaking my stop at $212. Remember I said when I posted the stock with its chart, that I
was skeptical of the stock due to market conditions. Nonetheless I get roasted if I miss
showing you one and someone will roast me if it breaks down. If the Feds had cut rates
today this stock would’ve moved very well and since they didn’t all stocks came down.
Good thing stops were set high on this one for anyone attempting it.

At any rate the charts of these potential leadership stocks that I’ve shown here never
have fully set with bases up except for one or two. If the market were going to stay on
track rebuilding itself then these stocks would hold their ground. Since they haven’t set up
no one would have been buying and that includes me. This is why the model portfolio has
been in cash except for one stock since October 8th. Seems when this model goes to
cash the market has a lot of trouble. When the chart patterns have fully set up then the
market is ready to move constructively.

So far the markets are not responding to the fact that rates are going to come down, but
in time they will. As Mr. Bollinger said on CNBC today "there has never been a time in
history that the NYSE has failed to move up when rates are coming down" And this is the
only time that I can remember that the NASDAQ has failed to respond to cuts on the
horizon.

1/5
Here are two charts. One is of the NASDAQ and its channel formation and the other of a
mini upside down pole and flag.

Here is a chart of a very nice and well-formed parabolic curve that has just been broken.
We’ve seen so many of these over the past year I’m surprised to see one now in this
tough market environment.

2/5
By the way for those of you interested in the software that I use you can go to
AIQSystems.com and get a free trial. I will also be giving a small one and half hour lesson
on chart patterns at their 3-day conference in Tampa Florida in March. Anyone interested
can go to their web site for the details.

Tonight Maya has an untimely report on a stock that got crushed today Ciena (CIEN).
This stock as you know violated its trend line the other day at $97. Had you taken action
on that violation a few days ago you would have been out then. In fact, if you had sold
some or all when the stock hit the upper trading band (see archives for CIEN in the
member login area for these bands) at $117 to $120 you’d be much better off.

CIENA CORP

Ciena Corp. (CIEN). Market Cap of $20.9 Bil, Shares Outstanding 286.5 Mil, Float 263.6
Mil, 52 wk high of $151. Last Q earnings $0.10, up 66% from previous Q, up 850% from
year ago. Last Q revenue $233.3 Mil, up 26% from previous Q, up 81% from year ago.

You heard all the talk about the deceleration in carrier and ISP capital spending growth.
The slowdown makes sense. With the weakening economy and erosion in profits, most of
the companies simply may not have the funds to finance some of their projects. However,
in the optical networking equipment sector, this slowdown is not expected to last very
long, if at all. Capital spending cuts still happen, but they take place at the expense of
money losing legacy voice equipment and new fiber deployments. Carriers’ spending

3/5
priorities, however, will be relocated even further onto the purchasing of bigger and bigger
quantities of cost-efficient optical gear. For this reason, companies who make this kind of
equipment are raising their earnings guidance at difficult times as this.

Ciena Corp. (CIEN) is such a company. It is a pure play in optical gear as they make no
legacy equipment. About two years ago, Ciena attracted investors’ attention when their
multi-billion dollar merger with Tellabs (TLAB) failed after AT&T ceased trials of Ciena’s
products. With only two more clients at the time, the loss of AT&T’s potential account
almost destroyed the company’s stock. But Ciena came back from the dead like the
phoenix, and with time, the management found a way to get the fragile company out of
the crises. In fact, Ciena used the lessons it learned to reemerge as a stronger, more
diversified, and independent company.

PRODUCTS, CLIENTS AND COMPETITORS

Today Ciena stands tall. The company offers a broad product line of optical networking
equipment. Ciena’s products can be organized into 3 groups described below.

1. ULTRA-LONG-HAUL

This is the equipment that helps transport information with high speed over long distances
(i.e. between the two metropolitan areas Los Angeles and New York). These are Ciena’s
most established products, which currently make up the bulk of the company’s revenue.
Ultra-long-haul is a crowded space with many companies such as Nortel Networks (NT),
Lucent Technologies (LU), Corvis (CORV) and others competing for the same business.

2. METRO-TRANSPORT

Ciena’s optical metro-transport equipment helps transfer information over short distances
in the metropolitan areas. Nortel Networks (NT), Cisco Systems (CSCO), niche player
ONI Systems (ONIS), and private startup Zaffire are among Ciena’s competitors in the
metro-transport space.

3. OPTICAL SWITCHING

Optical switches are used by carriers to direct information throughout their networks. This
is the newest and probably the most crucial product group for Ciena. At this time, optical
switches have the smallest contribution to Ciena’s revenues. Optical switch expert
Sycamore (SCMR) stands as the head competitors in the intelligent optical switching
sector. Tellium and Brightlink (both private companies) are also the two startups showing
significant promises in switching and competing for the same customers as Ciena and
Sycamore.

Today Ciena is a broadly diversified player not just in terms of its products but in terms of
its customer list as well. From their fiasco with AT&T, Ciena’s management team has
learned how meaningful it is to be well diversified. Unlike Corvis who is overweighed on

4/5
Broadwing being its only customer or Sycamore whose majority of revenues come from
Williams, Ciena’s client list includes Sprint, Qwest, Cable and Wireless, Williams, Verizon
and many others.

AN INTERESTING RELATIONSHIP

One of Ciena’s advantages may be its close relationship with the networking giant Cisco.
Together Cisco and Ciena formed the Optical Internetworking Forum (OIF), an
organization that works to develop networking standards. A few weeks ago, there was a
rumor circulating around Wall Street on the possibility of Cisco buying Ciena.

DEVELOPMENTS AHEAD

Ciena is gaining more acceptance overseas. Korea Telecom is deploying Ciena’s

equipment into its metropolitan networks. Ciena already has several Japanese customers
and is gaining more presence in Europe. It will be important for the company to keep the
momentum going in the international arena.

Ciena’s task is not an easy one. The company’s most important goal is to gain more
positions in optical switching as well as in metro-transport, without neglecting the long-
haul equipment market. Just today Ciena made a step in that direction by acquiring an
optical startup Cyras Systems in exchange for 27 million of Ciena stock. A smart move on
Ciena’s part, even though the stock took a beating. Cyras makes transport and switching
systems for metro areas and competes against Cisco Systems (CSCO) and Redback
Networks (RBAK). Also, Ciena’s optical switching product, called CoreDirector, is getting
good reviews from customers so far.

See you on Thursday and not Wednesday.

Daniel J. Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 December 2000

Hello out there stock fans. The NASDAQ continued its sorting process today by moving
many stocks it deems to have a weakening future in the next few quarters lower, while
moving a few stocks and groups that it thinks might have a brighter future in a tougher
and slower economy up. The groups moving lower today were chips and some of the
networkers while the groups moving up were the Biotechs and some financials.

A stock that I showed here last night with a very nice looking cup and handle I D C
Pharmaceuticals (IDPH), moved out of that formation today with a $15 move. The best
part of today’s move in this stock was that this stock closed strong at the end of the day
and within a point of an all time new high. Stocks that are at an all time new high move
the best and tomorrow that’s where this stocks should be. Volume was just a hair over
daily average volume which isn’t the best, as we would like to see at least a 50% increase
over daily average. However in this market this might be good enough to sustain the
advance. You're on your own for stops, but somewhere around $210 should be good.

A number of the biotechs are setting up nicely and in time their bases will probably look
best and be the most complete among all stocks in the market. It might very well be that
we get another run in the Biotechs. Leading biotech stocks that were big movers in the
last move HGSI, MLNM, PDLI, VRTX and a few others are starting to have the best
looking charts in the market. Many of these are not too far off their highs, which will be
positive for future price action.

One stock in the Biotech field that has one of if not the best looking charts in the market
today is Supergen (SUPG). The tight horizontal base is due to institutions accumulating
the stock. When the market gets a little more positive this stock might move out of this
area of consolidation. Here is a chart. The base on this stock for the past 6 weeks is
excellent but two factors must be considered. One is the break away gap to the downside
that you saw a few months ago and #2 is that this stock is not at an all time new high.

1/3
Here’s another stock in the Biotech group that has a very well formed Cup and Handle.
This stock should move tomorrow.

2/3
A few of the leading tech stocks are hanging in there and not moving lower as of yet.
Micromuse (MUSE) and CheckPoint Software (CHKP) held up fine today as many techs
moved substantially lower. As of today both of these potential winners are holding their
higher lows, as is Juniper Networks (JNPR). Broadcom (BRCM) on the other hand moved
below its technical support area today. This is the sorting process that the market is
performing right now, separating winners from future laggards. In time the winners will
have proper bases and we can then step in and purchase them.

The Fed meets tomorrow to debate and decide on the future of interest rates. Their
decision will hit the wires 11:15 PST. I can tell you that the market is oversold right now
and therefore the market could easily move up. The market has already priced in a
removal of the bias to tightening so this would be a non-event and could possibly lead to
a sell off of some sort. If we can get a .25% basis point cut then stocks could move
ahead.

Lets hope for a rate cut tomorrow stock fans.

See you tomorrow

Daniel J. Zanger

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 December 2000

Hello out there stock fans. The NASDAQ continues its decline and is now in the area of a
retest of the prior lows set just a week ago. Bad news from Microsoft that it will miss this
quarter’s earnings target by 2 cents and more importantly a statement from them that
they see global slowing coupled with similar statements from shipping giants UPS and
FedEx sent all markets here down hard on Friday once again.

The NASDAQ has now retraced all but 73 points of the prior up move from 2523 to 3028
or about 85% since the Fed gave notice that it intends to lower rates. Meanwhile most of
the strongest stocks that I showed you at their probable bottom two weeks ago like
CheckPoint (CHKP), Braodcom (BRCM) and others have retraced about 50% of their
prior up move. A retacement of 62% or less is normal and fits within the standard
retracements figured in the Elliott Wave theory. It would be highly constructive and
extremely important for these retraced areas to hold with the main reason that these
strong stocks will now have higher lows set in place. Higher lows is very necessary for
constructive patterns to stay on track in the rebuilding process of the charts and their
chart patterns. Should these higher lows that were set on these stocks during this past
week be taken out then you can be assured that all hell is on the loose again. I’m now not
so concerned about the NASDAQ composite as I am about these stocks.

Seems my letter of two weeks ago has fallen on deaf ears for many. Therefore I need to
refer back to that letter of two Sundays ago again in which I talked about how Yahoo
made a bottom 5 weeks BEFORE the NASDAQ bottomed. The stocks that I talk about
and show during the week like MUSE, IDPH, CHKP, EMLX, BRCD, BRCM, and JNPR are
starting to resemble and fit that same scenario with EMLX, IDPH and CHKP on top.
Clearly as of Friday the NASDAQ has not bottomed however many of the potential
leading stocks have, that is unless their higher low bottoms that were put in place this
week are taken out.

My guess is that should the Fed lower rates this Tuesday at the FMOC meeting then
these higher lows will hold and if the Fed fails to lower rates this Tuesday then these
higher lows could easily be taken out which would be extremely negative and bearish for
weeks to come.

Lets get to the charts and see what the heck he’s talking about. First up is the NASDAQ
and you can clearly see the descending channel that this index is in. Then on to the S&P
and then to some selected charts of these "strong stocks".

1/5
2/5
3/5
Now here is a Cup and Handle formation on a Biotech company. The big volume spike on
Friday was due to this stock being added to the NASDAQ 100 and related triple witching
option expirations on Friday. In this market environment, stocks breaking into new highs
has not been rewarding as we’ve seen with EMLX. The market is telling us something so
this stock right now may not work out if it in fact breaks out. However I wouldn’t be doing
my job here if I missed showing you one of these.

4/5
As we all know EMLX hit my stop at $152 so its been checked out of the model portfolio.
This once again put the model back to 100% cash.

As you know the holidays are upon us once again and I for one will be taking a few more
days off. Next Sunday and the Sunday after that and possibly a few days during the week
I will not have letters. Happy Holidays.

See you tomorrow

Daniel J Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 December 2000

Hello out there stock fans. A strong looking day at the open today with most leading
stocks gapping up at the open of trading today on good pre market volume. This however
didn’t last long as selling soon took control and many stocks began to go negative and
never recovered. Many of the stocks that have been holding up well like CIEN and EMLX
gave ground with EMLX moving lower on lighter than usual volume. This shows a lack of
buyers more than a need to sell the stock by current owners. Many other stocks such as
Interwoven (IWOV) and Micromuse (MUSE) did have heavy volume as prices moved
lower.

I’m sure there are a number of reasons for today’s action. Much of it has to do with the
fact that we came so far so fast. We also had more earnings warnings and lower than
expected retail sales out today with car sales being down the most. Also, 'sell the news'
mentality could’ve been in the cards now that the election has been decided.

I would also like to note that on the NASDAQ chart of two days ago I wrote that for this
rally to continue this descending trend line would need to be broken. In time it will be
broken, but until it is all of these rallies are subject to failure. I also wrote two Sundays
ago that it’s possible for stocks to have bottomed weeks before the index itself does, such
as we saw in 1998.

The NASDAQ could be headed down for another visit of its most recent lows. Since Alan
Greensapn has said that he wants higher equity prices and I assume he’s targeting the
NASDAQ as it’s off its highs by almost 50%, it may certainly be necessary to lower
interest rates sooner rather than later. The Fed meets next Tuesday to decide.

Now lets get to a chart and see a trend line where this stock needs to hold or face lower
prices. This stock Ciena (CIEN) is one of the leading fiber optic network companies. It
broke through its descending trend line with great power last week and hit its upper
trading band where it stalled. It now needs to hold its trend line and move back up.

1/3
Here is a stock that could be a possible short. Handspring is the stock and they make the
Visor hand held device.

2/3
Now I see EMLX came down today on lighter than usual volume and back into its base
and closed the day at $157. Not a good sign to be sure. However this stock is up three
points to $160 in after hours trading and should the market have an up day tomorrow this
stock as you know, would be up and out of the base again. However we must now set
stops just in case. I will set stops at $152.

Due to market conditions there are no other picks tonight or charts, but hopefully by
Sunday something will set up in the charts to highlight again. By the way whenever the
Fed is lowering rates there is always a new bull market. Sometimes they sputter for a
while before they get going, but in the end they always get going.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 December 2000

Hello out there stock fans. A rather unexciting first half of trading today as the market was
on U.S. Supreme Court watch eagerly awaiting an outcome that many had thought would
come by mid day today. Volume was very light with many high-octane stocks trading well
below 50% of daily average volume at the half way point in the day today as traders sat
on the sidelines awaiting word of an impending decision.

As the day wore on traders fearing that the longer it took for a decision the more likely
that the court was split on its outcome and thereby prolonging the outcome of the
election. Short-term traders took this delay as their cue to exit positions and exit they did.
Volume began to pick up and stocks began to sink in price. Many stocks that were up
fractionally or down just a point began to sink fast with many stocks ending the day down
$5 to $10 at the bell.

After such a tremendous rise in stock prices over the past 7 days it's normal for some
profit taking even if the election issue were not here. After all many stocks have shot up
30 to 60% off their lows with some stocks like Check Point Software (CHKP) moving up
almost $80 in this time frame. Some backing and filling or profit taking if you will is all part
of the 'investing' game.

After scanning hundreds of charts today there are really no charts that have as of yet set
up with meaningful chart patterns. By the first of the year I think there will be many to
choose from. However tonight I have one of the Russell 2000. On it we can see that the
NASDAQ hit its descending trend line yesterday and reversed direction today. The good
news is that this line descends on a daily basis, which means that everyday we are closer
to breaking it. The same goes with the descending trend line that I showed you last night
on the chart of the NASDAQ.

1/5
Again many of the charts need more time to do backing and filling which will in time give
us stronger charts. Having said that this market is very news sensitive and the impending
decision by the Supreme Court should move the market strongly one way or another
when it comes.

By the way Qualcomm, which was shown here the other day before it ran from its cup
and handle formation (see archives in the login area) has reversed on some bad news.
No one knows where it goes from here, all one can do is to make sure stops are set. I
would set stops at $85, which is just below the 28-day moving average line. This stock
should never have reversed like it did so watch out.

A number of folks have e-mailed me over the past week saying that I don’t give specific
buy points on many of the stocks I’m showing. That is because none of the charts have
fully developed yet other than just a few. This is due to the brutal crushing the NASDAQ
has endured over the past 8 weeks. Soon stocks will have set up with defined chart
patterns and I will have patterns and trend lines with technical buy points. Buy points just
don’t magically appear everyday of the week or month. Give the market a bit more time
and many patterns will appear.

Tonight Maya has a timely report on my lone portfolio stock Emulex Corp. (EMLX).

EMULEX IS NO HOAX

2/5
Emulex Corp. (EMLX). Market Cap of $6.4 Bil, Shares Outstanding 36.5 Mil, Float 34.7
Mil, 52 wk high of $225. Last Q earnings $0.33, up 32% from previous Q, up 83% from
year ago. Last Q revenue $55.5 Mil, up 36% from previous Q, up 92% from year ago.

The company, which is the subject of today’s discussion, became best known for what
happened to its stock a few months back. Remember one day back in August the stock of
Emulex Corp. plunged 62 percent within minutes? The whole world heard about this huge
hoax story. It’s very likely you’ve heard it too, but do you know what Emulex actually
does?

WHAT THEY ACTUALLY DO

Emulex is participating in one of the hottest and fastest growing industries, the storage
industry. Read more on the sector in November 30, October 17 and September 21 reports
in the member login area. Emulex designs fibre channel host bus adapters (HBA) and
hubs. The company also makes other network connectivity products like network access
servers and printer service. However, fibre channel host bus adapters as well as hubs are
their main revenue contributing products.

Since fibre channel host bus adapters are so important to Emulex, it could be useful to
know what that actually is. First off, notice that Fibre is spelled differently from Fiber. In
simple terms, fibre channel technology is a server to storage communication technology.
Fibre channel host bus adapters, in storage industry simply referred to as HBAs, are very
sophisticated devices. They are big networking cards that are installed into servers,
workstations and storage systems. With HBAs help, devices can connect with each other
over a fibre channel interface in a Storage Area Network (SAN).

Emulex is the number one supplier of host bus adapters with a leading 39 percent market
share. This is no surprise since the world’s three largest suppliers of storage systems
Compaq, EMC and IBM are all deploying increasingly large quantities of Emulex HBAs as
part of their Fibre Channel-enabled storage networking solutions. As mentioned earlier,
Emulex also makes hubs. A hub is a communication infrastructure device, which is a lot
like a primitive switch. IDC predicts that the Fibre Channel market for adapters and hubs
will grow 60 percent a year to $1.8 billion by the year 2003.

COMPETITION

Emulex’s main competitors are Qlogic (QLGC) and JNI Corp (JNIC). Among all three,
Qlogic is the oldest with over 15 years of enterprise storage experience. While Emulex is
making plans to extend its reach into the areas beyond the fibre channel, into Ethernet,
Qlogic has got different ideas about its own future. Qlogic is hoping for a vertical
expansion, further into the fibre channel business by designing switches for SANs.

JNI Corp, on the other hand, is a relative newcomer in the industry, and has not gained
the reputation that Qlogic or Emulex have. The youngster has lost almost half of its value
after announcing lower sales expectations Monday. JNI’s problems seem to come from
the heavy reliance on the resellers (distributors) of their products.

3/5
MAKING A PROMISING ACQUISITION

In the news just last week, Emulex is making a significant acquisition move by snapping
up privately held Giganet, Inc., a developer of Internet Protocol-based or IP-based
storage networking technology. Giganet makes solutions that connect Network Storage
Attached (NAS) devices, while Emulex main products as mentioned earlier use a different
technology called fibre channel, used in Storage Area Networks (SANs). The acquisition
opens new doors of opportunities for Emulex. In simple terms, Emulex now wants to
provide connectivity solutions not just for fibre channel SANs but for the Ethernet as well.
And Giganet acquisition will help them do just that. It is estimated that 3Com (COMS) has
35 percent of the market for networking cards for the Gigabit Ethernet. That market grew
an impressive 50 percent between the second and third quarter of this year.

SEEING FASTER GROWTH AHEAD

While JNI may be foreseeing slower growth, Emulex’s CFO said last week that the
company anticipates faster than previously expected fibre channel revenues growth in the
upcoming quarter. At JNI’s expense maybe? Emulex upped the sequential growth
expectations to 28-30 percent for next quarter from previous expectations of 20-25
percent growth for their fibre channel business. Note the previous quarter sequential
growth was 36 percent for total revenues. Hint: It looks like the growth is far from slowing
at this company!

With all these developments taking place, it seems that Emulex has all the right
ingredients for success. It is well positioned to extend HBA market lead even further with
just a few competitors in sight. In addition, Emulex is planning to stretch out its expertise
into other fast growing markets. Make sure to keep this one on your radar screens.

NOTE

The company’s shares will split on December 15 and trade split adjusted on December
16. Emulex will have approximately 74 million shares outstanding.

Daniel J.Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 December 2000

Hello out there stock fans. The rebuilding process continues with many stocks pushing
back up to their recent highs, which in time will create some very nice bases in which we
can start off the new year with a bang. Chips and biotech stocks were strongest today. A
broadening out of the sectors moving is very bullish and signals that this bull is alive and
healthy.

Many of the best stocks to own in the NASDAQ as defined by price action, have already
had big moves, which we all saw last week. Now that these stocks are extended from
their lows money is flowing into second tier stocks that even though may look good to
some, are not going to be the big winners of this new move.

Let me clarify. When there is a fire sale and the doors open at the mall do we rush in and
buy what no one wants or do we rush in and buy the best merchandise on the shelves
before it is all snapped up and gone? It’s the same with stocks. When they were on sale
last week, the crowd went right to the winners first. Now that they have moved up
substantially in price the crowd is buying what’s left. Do you want to own leftovers or do
you want to own a Ferrari? Its up to you, I know what I want for Christmas and its red and
very fast.

Let’s look at some of the winners they were buying last week. In time these stocks will
back and fill and consolidate and then they’ll be ready to make sizable moves in the next
leg up. Of course some of the other winners are MUSE, CIEN, IWOV, AVNX, BRCD, and
JNPR.

1/6
2/6
Below is one that was a good winner for us some time ago and seems to be making a
comeback. Like many stocks that are on the move right now, it’s the percent change in
volume that is key to finding the big movers. You may not get to own these right now but
in a few weeks they’ll be back moving into new market move highs from some form of
consolidation. Most of the time I only buy stocks that are coming out of defined chart
patterns or an area of consolidation. Since the market has collapsed there are few to
none of these yet, however stocks are rebuilding rapidly and I expect many patterns to
emerge soon.

3/6
This next stock (SCMR) is a rather strange stock and is not a favorite of mine, however I
am using it to highlight to all of you that are new here, how the 28-day moving average
line is used. I use this line frequently to my advantage. The second stock is Extreme
Networks (EXTR) a fast mover prior to its breaking down in the bear market. It like many
others is rebuilding nicely.

4/6
Here is a chart of the NASDAQ and it seems poised to break a major down trend line and
moving average lines that also signal that a new bull market is here. All we need now is a
little push from our friendly Fed.

5/6
Well today I added 100 shares of EMLX to the model portfolio. This stock was all over the
map possibly due to an analyst meeting that was underway today. Also the stock has had
a big run up but as you know I was afraid we might miss this one ala SDLI. I personally
bought this stock at 170 to 176 today. I did say that I would average it in from the high of
the day to the low of the day, so this would be at $175.

In time I will add more stocks to the model portfolio, but right now I would like to see some
of the others rest and consolidate. Here are my candidates for model stocks after they
rest. QLGC, MUSE, CIEN, IWOV, BRCD, JNPR, CHKP.

I want to remind everyone that I use trend lines and chart patterns to buy stocks. A break
above a trend line by one eighth of a point sets me in motion to buy. In the world record
run I owned no more than two stocks at any one time. I used margin heavily and never
ever watched a stock go below that line by more than 2 points before I sold. I always sold
on the way up and I only owned the fastest moving stocks. Unless we can get stocks that
can move like the Internet stocks did over the past few years I doubt that record will ever
be equaled. However if we can get 30 to 60 point moves a day in some stocks again I for
one will be trying to do it again.

Well that’s it for tonight. Lets hope this election thing is over with soon.

Daniel J. Zanger

Chartpattern.com

P.S. 85% of the time I was buying stocks that were at new 52 week highs.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 December 2000

Hello out there stock fans. A weak jobs report on Friday sent stocks blazing with new
leadership stock Emulex (EMLX) rocketing into new highs before pulling back late in the
day. Many tech stocks were up 10 to 18 points until about an hour before the close when
two court cases went against Al Gore and stocks began to sell off on the news. Then an
end of the day surge carried many stocks up another few points, which caused many
stocks to close on their highs of the day. A closing on the high of the day is often seen as
very positive.

I mentioned on Wednesday of last week to look for stocks to hold their ground without
giving back much of the gains made on New Bull Tuesday of last week. That’s exactly
what happened on Wednesday and Thursday. In fact in the last few minutes of trading on
Thursday many leadership stocks surged as smart money guessed that the jobs report
would be weak thereby positioning them for a gap at the open the next day, which is
exactly what happened as stocks like Brocade Comm. (BRCD) gapped open 15 points.

At any rate after the bell on Friday the Florida Supreme Court agreed to a recount of
certain counties and included some ballots in the existing count, which was a win for Al
Gore. Stocks gapped down 4 to 6 points in after hours trading late Friday when this news
was released. This is nothing more than children playing video like games on the
NASDAQ stock fans; they don’t do this on the NYSE. Soon this mess will be over with
and as before the same stocks that got trashed on the election snafu were the ones that
came back the strongest. Therefore I will be viewing any hard sell off as a major buying
opportunity for these leadership stocks in a new bull market.

On Saturday the U.S. Supreme Court told Florida to halt the recount in a narrow 5 to 4
vote. I can only assume that this halt tips the scale in favor of Gov. Bush or they wouldn’t
have halted the count is how I see it. Hopefully this will counter the negative actions seen
on the NASDAQ after the close on Friday and stocks will open with minor gaps one way
or another.

Now let’s get to the stocks that are acting best and have the strongest charts. Many of the
charts have rebuilt so fast it’s amazing what a potential rate cut can have on the
performance of stocks. Stocks like CheckPoint Software (CHKP) is moving back up to old
highs in a hurry, as is Qlogic (QLGC). Emulex (EMLX) is moving ahead into new highs
and has price action similar to SDLI, which as you know broke down viciously and then
vaulted from $147 to $315 in just a few weeks back in May of this year.

Now here are some charts of the leading stocks in the market today. EMLX is a must own
for me as are all of these stocks right now.

1/5
2/5
The SOX index is ready to move above its 28-day moving average line for the first time in
a long time. For those of you that are new, you will see that this index had lived below this
line for most of the downward movement in these stocks. A break above this line is just
the beginning of what should be a rebuilding process for this group of stocks.

3/5
Here are a few stocks to look at for the active day trader with my technical buy points.
This is of course depending on the markets behavior tomorrow. CREE at $76, FDRY at
$54, Hand at $61 RBAK at $95, IWOV at $86.

Tomorrow I have no idea which way the market will go as this election thing is really
making it very difficult to predict one day to another. However I will take a stab at adding
one stock to the model portfolio. I was hoping for EMLX to rest a little more, however this
stock is too strong to do that. I will add one hundred shares to the model portfolio at the
average price that the stock trades in tomorrow. This would be just about 25% of the cash
available right now and no stops will be set just yet.

If we can get a hard down day tomorrow I will add some other stocks to the model
portfolio. I will do this by e-mail during the day so you may want to check your mail during
market hours. A few stocks I want to add are CIEN and QLGC. By the way QLGC goes
into the S&P 500 at the end of the day tomorrow.

We have a new mail server that has greatly improved the speed of delivery of the mail so
adding and removing model stocks during the day may be the norm here soon.

I’ll see you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 December 2000

Hello out there stock fans. A quick reversal on the NYSE today spilled over to the
NASDAQ later in the day as more earnings warnings from Apple Computer (APPL) and
potential poor earnings from Intel put cold water on yesterday’s euphoric rally. Later in the
day the market rolled over even harder when Bank of America (BAC) reported that it too
would miss earnings numbers. Isn’t this why Mr Greenspan is going to lower rates?

Actually all three of these companies have reported poor economic conditions for some
time, so their shortfalls are no surprise. BAC said over a month ago that it would take a
$900 million charge for loan losses, which spells trouble in this industry and this stock’s
earnings.

Today the NASDAQ closed down 93 points on 2.2 billion shares vs. yesterdays’ gain of
274 points on 2.4 billion shares. Somewhere in this equation there are more buyers than
sellers. Also a smattering of shorts running for cover. At any rate many stocks have run
up 30 to 40% in price in just a few days and a few days of selling is good as long as the
price movement down is confined. After such a hefty and quick run up over the past few
days, stocks need backing and filling as they say. This will help create more pivot points
from which we can trade from.

Until this election stuff is out of the way, we are sure to have some very volatile days. And
like in 1998 it’s possible for the NASDAQ to make new lows while leadership type stocks
continue to rebuild. A number of potential leadership stocks to watch are Emulex (EMLX),
Brocade (BRCD), and Qlogic (QLGC) just to name a few.

One leadership stock QCOM, got far above its upper trading band today and sellers came
in to capture quick and easy profits. Volume on this stock surged to triple daily average.
Here is a chart of this stock.

1/4
Now on to EMLX which rocketed from its lows of $95 just the other day when the markets
were getting hammered all the back to test old highs in the $170 area today. A vaulting of
$75 in just five days. What an animal this stock is! This stock is due to split 2 for 1 in a
week or so. Right now I would like to see this stock do at least two weeks of backing and
filling near the old highs before it takes off again. The longer it can back and fill the
stronger the pattern would be.

2/4
Here is today’s picture of the NASDAQ and it’s not looking too bad as of today
considering it just dropped 1700 points in a few months.

3/4
If the NASDAQ continues to hold and rebuild which is now one of Mr. Greenspan’s
targeted areas so as to help the consumer, many charts will come around with nice strong
chart patterns. This should take about 3 to 5 more weeks. At that time I will start adding
stocks to the model portfolio as they break out of various patterns. As of right now it is still
in cash.

Until that time, I believe this market is best suited for the quick and active trader other
than QCOM and maybe IDPH. All stocks are extended so there are no chart selection
and no day picks until more pivot points have built.

Maya will have a report on Extreme Networks (EXTR) tomorrow and I’ll see you on
Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 December 2000

Hello out there stock fans. The market opened with a good gap at the open, but volume
was light for the first hour or so until Alan Greenspan spoke at 10:45 EST. All Mr.
Greenspan could talk about was how slow the economy was and that inflation was not a
threat outside of oil. He even hinted that the Fed. was ready to move on a rate cut, but
stopped short of saying that it would be at the next Fed meeting in two weeks. However I
can’t remember him ever talking the way he was today continually emphasizing how
weak the economy was. I can only assume by the tone of his speech that the Fed is
ready to move to lower rates in two weeks.

The more he spoke the more volume began to surge and prices took off in a big way.
Volume was continuous throughout the day with no let up. Shorts were running for cover
and with good reason, today should signal the start of a new bull market and an end to
the worst bear market most of us have ever experienced. By the way when most bull
markets start there is no let up in prices moving up for sometime to come.

Seems those charts I showed you this weekend were telling, that indeed a bottom had
been put in. Many of those stocks were big winners today like Emulex (EMLX) up a
whopping $34 on heavy volume and Veritas (VRTS) up $21 on huge volume. Most of the
others listed were up big, as were many tech stocks across the NASDAQ on this record
day. Last night’s stock selections QCOM and CHKP had outstanding sessions today with
QCOM up over $9 on twice daily average volume while CHKP motored ahead some $23
on heavy volume.

There are so many success stories today, and I’m sure you know them, so let’s get to the
charts to see which stocks are next on our hit list. By the way the first phase of a new bull
market can last a long time before the next correction. Many times upward to 7 months
long.

Now here are some charts that are looking excellent.

1/5
2/5
Here are some stock picks with buy points to look at for the very active short term day
trader that can handle these types of stocks. CORV at $41, FDRY at $49, GILD at $88,
GLW at $70, HGSI at $69, MERQ at $87, NEWP at $96, PDLI at $86, PPRO at $19 SDLI
at $247.

Here is an updated list of tick symbols of stocks that are on my screens right now and
yes, I own a few of these as of today, but not all. FDRY, PMCS, BRCD, JNPR, EMLX,
ITWO, IDPH, QLGC, CIEN, VRTS, IWOV, VRSN, QCOM, CHKP, ARBA, EXTR, RIMM,
HAND, MANU, MUSE, AVNX. These stocks are the leaders of this move and should be
followed closely by all that want large gains in this upcoming new Bull Run.

Tonight Maya has an information piece on Juniper Networks (JNPR).

JUNIPER IS STILL JUMPING OVER CISCO’S HEAD, BUT COULD IT JUMP OVER ITS
OWN?

Juniper Networks Inc (JNPR). Market Cap of $49.5 Bil, Shares Outstanding 315 Mil, Float
186 Mil, 52 wk high of $244. Last Q earnings $0.17, up 113% from previous Q, up 999%
from year ago. Last Q revenues $201 Mil, up 78% from previous Q, up 581% from year
ago.

Some interesting developments have been taking place with Juniper, so we thought we
would tell you about them.

GOING FOR NEW MARKET OPPORTUNITIES

3/5
Juniper has recently teamed up with Ericsson to start up a mobile Internet joint venture.
Ericsson already has a small stake in Juniper and an existing distribution agreement to
sell Juniper’s M-series Internet backbone routers. Both companies will contribute their
technology expertise to the venture to develop IP routing for 3G networks. This is
significant because Ericsson, is the number one supplier of 3G infrastructure. Entering
into a new market is good news for Juniper. Wireless Internet industry is projected to
grow at a rapid pace. During the conference call announcing the venture, Juniper’s CEO
Scott Kriens said, 'by 2003 the mobile industry will have grown from 52 billion to nearly
$100 billion.'

Juniper has come a long way since it started selling its first routing products just two
years ago. In September, the company announced its new edge routers (see September
19 report in the member login area). A joint venture with Ericsson is another step for
Juniper to become a company with more diversified streams of revenue, a more mature
company.

ON THE CAPEX FRONT

Currently investors are more than ever questioning the weakening capital-spending
budgets of regional Bells and new phone companies like Williams and WorldCom. A few
weeks Morgan Stanley Dean Witter downgraded Juniper on these demand concerns,
while other analysts are defending them. Just a few days ago, Juniper’s CEO stated the
company was not being impacted by slowing capital expenditures. In addition, Mr. Kriens
said, 'the routing industry will be $30 to $40 billion in 2003,' expressing his highly
optimistic outlook for the industry and the company.

WINNING THE WAR WITH CISCO

Dell’Oro Group, a well-respected communications equipment industry’s researcher, has

recently come up with the router sales figures for the third quarter. Total revenues for the
quarter for core routers were $680 million, up a healthy 35 percent from the previous
quarter. During that period, Juniper’s share grew to a stunning 30 percent of the core
router market from just a little over 22 percent in the quarter before. This also means that
Cisco’s stake fell from 75 percent to 68 percent since this is pretty much a two-player
market right now. Analysts estimate, at current pace, Juniper could have a dominant
market position by late 2002.

WHAT CISCO PLANS TO DO

Over the past year, Juniper has become a serious competitive threat to Cisco’s
dominance in the core IP router space. Cisco is certainly not happy with the way things
are shaping up. They have recently hired back Cisco’s original CTO, Ed Kozel, and rumor
has it he will be focusing specifically on fighting off Juniper. In the beginning of next year,
Cisco will also have its new generation 10-Gig router ready, which will improve the
chances of regaining some of the market share it lost. Juniper has been selling their 10-
Gig routers for months, which is one of the reasons it was able to beat its giant rival.

4/5
DEVELOPMENTS AHEAD

Data that needs to be routed grew tenfold in the last six years, and that growth is
expected to accelerate. Now it is projected the data that goes through routers will
increase by ten times just in the next 2 to 3 years. At first look, this sounds like good news
for the router-makers such as Juniper, but if we look a little deeper into it, we may see
problems. The routers that Juniper and rival Cisco are selling will not be able to satisfy
the growing demands for data. New technological solutions are needed. The industry will
need a new generation of routers that would process information using 10 or 100 times
less electricity and would take 10 or 100 times less premises’ space than the current
generation.

Moore’s law states that the processing power of a computer chip doubles every 18
months. In fiberoptics, a similar result in even shorter period of time is possible. These
achievements in processing and transportation contribute to the exponential growth of
data. However, in routing, similar results in processing power have not been achieved just
yet for many different reasons. The company who will come up with a solution for this
crisis will be rewarded. Could Juniper be this company?

I’ll see you tomorrow and thank goodness the Bear is back in hibernation.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 4 December 2000

Hello out there stock fans. The NASDAQ staged a good recovery today after selling off
early in the day near the lows set last week. The Supreme court sent the Presidential
election snafu back down to the Florida supreme court for clarification and upon hearing
the news the market set forth a rally which faded as usual near the end of the day.

However many stocks held ground and a few stocks are starting to emerge from chart
patterns like Qualcomm (QCOM), PowerWave (PWAV) and R.F. Micro Devices (RMFD).
Also an old favorite of mine from 8 years ago Tellabs (TLAB), is moving slowly out of a
nice area of consolidation at $45.

I can tell you if these stocks are on the move like they are, it’s for one reason only. The
market is sensing an end to this monster bear market or corrective phase of this bear and
is reacting accordingly. I do think however the big movers won’t get going for sometime,
but yes, in time, after they rebuild their bases they will get moving very well again. Some
of the ones I think are showing promise of big moves to come are those stocks in last
night’s letter.

Lets take a look to see what’s going on some selected charts.

1/3
2/3
After the bell today there was another court case that threw out some of Al Gore’s
challenges. In after hours trading many stocks are up big with some stocks like SDLI up
as much as $10. QCOM is at $92 and many others are up as much as $5. Stocks should
be gapping up tomorrow at the open, so be careful buying at the open as many stocks
could sell off $2 to $5 within 20 minutes of trading. Even then who knows what will
happen as we are still in a bear market and tax loss selling will not be over with for
sometime.

I will have more tomorrow

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 December 2000

Hello out there stock fans. A tough day on Thursday of this past week as Gateway’s
(GTW) pre-announcement along with Altera’s pre-announcement sent the NASDAQ
below its lower trading band for the second day in a row. This turned out to be a golden
buying opportunity for those that were in buying when the NADSAQ was below that lower
band. Volume exploded to 2.7 billion shares its second heaviest day ever, which pushed
the NASDAQ back up 100 points off the lows of that day.

This was followed by another very heavy day of volume on Friday with the NASDAQ
tacking on 140 points before giving back 100 of those points as margin calls along with
fear of holding stocks over the weekend by short term traders induced selling.

The last time we had volume of 2.7 billion shares or more was back in April of this year.
After a few days of upward price movement from that day the NASDAQ rolled over and
moved lower once again. It remains to be seen if that scenario plays out again, I suspect
it will.

Many classic signs that a bottom on this leading index has arrived haven’t been displayed
yet. On the other had many individual stocks are showing classic signs such as
capitulation and or massive volume as the stock consolidates then moves up, all of which
I have here to show you today.

On this chart of the NASDAQ (OTC) which I have here in a compressed weekly format
you’ll see the NASDAQ hitting its 200-week moving average line, which this index has
held for the last 7 years. https://chartpattern.com/Charts/OTC-12-01-00.gif

The next chart is of the QQQ’s a tracking index traded on the AMEX. It shows this index
stuck in a descending channel formation, which at some point will be broken.

1/9
Now on to a chart of the DJIA compressed to a weekly format. It shows a chart that is
almost exactly like the chart of BRCM, JNPR and BRCD before those stocks broke down.
A Head and Shoulders top with an inverted cup that is a second right shoulder. If the
Fed.’s decide to move on rates in two weeks then this pattern won’t work out to the
downside.

2/9
This chart of the S&P 500 is very negative too.

3/9
Now on to a number of stocks that are exhibiting behavior that could turn out to be the
bottom on these stocks. One of them, VRTS is showing what I consider classic signs of
capitulation, which should turn out to be the bottom on this stock. It’s also what I would
like to see on the NASDAQ.

4/9
5/9
6/9
7/9
Here is a classic example of what can happen when momentum stalls out. This happened
on Broadcom (BRCM) and I see this happen all the time. Also many energy stocks are
breaking down and these stocks typically do so prior to oil lowering in price. Lower oil
prices suggest a weaker economy and or a weakening cartel.

I guess the bigger question is can it be possible for these stocks to have actually
bottomed if the NASDAQ hasn’t? I can make reference to the bottom that the NASDAQ
put in on October the 8th of 1998. Yahoo broke down in that break like all stocks have
today, however Yahoo made its final low 5 weeks prior to the NASDAQ making its final
low. By the time the NASDAQ hit its low point of 1357 on October 8th Yahoo was already
hitting new highs and had cleared its base. The charts are suggesting this may happen
again this time around.

Yahoo went on to be the one of the new leaders of the new move and I can tell you I for
one was all over yahoo recouping losses from that bear market. Of course I went on to
capture the worlds record for % gain in a single portfolio for any one 12-month time frame
from June 1st 1998 to May 31st 1999. For the record the gain was 29,233% for this 12-
month period of time. It is the world’s record by far for an all equity portfolio and yes it was
on full margin.

I have never shared this record with anyone but a few until it was published this month in
Fortune Magazine, as no one would ever believe it. Fortune magazine chose in fact to
take the record out 18 months, which shows a gain of over 160,000 percent for 19
months. You can read about it in this December’s issue. I had to send them all of the

8/9
audits and all of the trade statements and my tax returns, which you will see. If this former
pool builder from L.A. can do it, you can too. But you won’t do it by quitting when it gets
tough. We all do it by learning from our mistakes.

I had the 12-month gain audited by a large firm in N.Y that specializes in auditing
portfolios for professional money managers. The name of that company is Effron
Enterprises. I will have the entire audit posted for all to see in a week. I will provide a link
here for all to read this month’s article in Fortune.
http://www.fortune.com/fortune/2000/12/18/gen.html

By the way one of the other individuals in this piece Brent Mckinney, is my first subscriber
here at Chartpattern.com. You can read his story as well as mine too. I did tell them
however that I have been doing chart reading since 1974 and seminars in LA since 1994,
however they made it sound like I just got off the turnip truck.

I will have more on Monday. Remember good times are followed by bad times and bad
times are followed by good times. Chin up.

Daniel J Zanger

Chartpattern.com

P.S. One piece the writer needs to correct is that I bought 5,000 shares of Qualcomm
(QCOM) before it split 4 for 1. So on a split-adjusted basis I would actually have had
20,000 shares, which is what she should’ve written. This is how you get to the $2.7
million. Also the difference between the $14 million and the $18 million is that I had not
sold all my stocks, therefore incurred no capital gain. I held QCOM and a few others until
the first of the year.

Copyright © 2025 Daniel J. Zanger

All rights reserved. Do not duplicate or redistribute in any form.

CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan

ZangerTM shares profitable strategies for trading the stock market in the The Zanger
ReportTM. The Zanger ReportTM is a nightly newsletter that features breakouts, swing
trading, breakout trading, technical stock chart analysis, stock tips, market research, hot
stocks, and commented charts with highlighted chartpatterns. Dan ZangerTM shares
additional real time strategy plays daily in his large chatroom.

9/9