Archive newsletter

chartpattern.com/archive-newsletter.cfm 1 January 2001

Hello out there stock fans. Heavy tax loss selling on the last day of the year on the
NASDAQ caused some stocks to break support while others held on but just barely. Most
of the damage was confined to high techs while the leading groups in the market today
i.e. Financials, Oil, Healthcare held up fairly well.

One of the reasons that this last group held up well is due to these stocks being at or very
near new highs. In fact if you were an owner and sold the other day you would incur a tax,
which would be due shortly. This group might now incur some new year selling as capital
gains now can be deferred until next year 2002. Conversely some of the stock that was
sold just for taxes might now rise in price as new buyers enter them.

However this might not last long as earnings season and pre-announcements for many
tech stocks lies just ahead. Volatility isn't going away anytime soon and I expect lots of
volatility over the next few weeks and months. There are a number of groups however
that are not as volatile as most of the techs and earnings in some of them are very
impressive right now. I thought I might list a few here today.

Lets take a look at one or two of these drilling and exploration stocks. First up is Pogo
Producing Co. (PPP) This small company has about 40 million shares total and around
36 million that float or that are available for the public to own or trade. Earnings for the
last quarter were up 743% to .59 and revenues were up 88% to $129 million. P/E on this
stock is at 21 and looks like it might go higher as this stock is just now leaving its base.
Lets have a look

1/4
St. Mary Land & Exploration (MARY) is another good looking stock in a strong group.
Earnings for the last quarter were up 445% to .60 and revenues were up 171% to over
$53 million. P/E now stands at 29 and set to move up higher. I would consider buying this
stock on a pull back if I can get one at around $30 or so. Here is a chart showing all the
action.

2/4
Here is a chart that caught my eye this weekend, as I know this pattern well. This is a
very strong pattern and as always that's what I look for first. It turns out that this stock is
one of the strongest stocks in the strongest group in the stock market today. The
company is Meritage Corp. (MTH) and the company is a homebuilder in the Southwest.
The homebuilder group that this stock resides in has a group relative strength (RS) of 99
out of a possible 99. This stock's RS is 99 too, which makes this stock a 99/99. You can't
get any stronger than this. Earnings for the last quarter were $1.85 and up 176% while
revenues were up 75% to $134 million. The P/E ratio on this little company is a meager 7.
A few other stocks in this group are NVR on the AMEX, SPF, BZH, PHM, RH.

Here is the chart on this one with my technical buy point. It would be nice if this stock
could move horizontal for a week or so more, thereby creating a stronger base. By the
way homebuilders typically trade at very low P/E's.

Here is a list of some other leading drilling and exploration stocks to download and track.
ROIL, KP, POG, TTEN, PTEN, WHES, NBL, LD, THX, NFX, MND. As long as oil stays up
in price these stocks should do well. In 1997 these stocks were market leaders for about
2 months until oil along with Asia collapsed. These stocks dropped just a fast as an
Internet stock when that happened as did many stocks and groups.

Here are a few of the strongest smaller banks that are acting well and hitting new highs
that might be worthwhile for a select group of individuals to download and consider.
SWBT, SBIB, BNKU, MDST, EWBC, TRBS, SBIB, UCBH, and GBBK. Here is a list of
some of the strongest savings and loans. FLGS, DSL, FED, GPT, WM.

3/4
Here is a small list of stocks that look like they might want to move lower in price or could
be possible shorts with my technical entry points. IDPH at $188, QLGC at $76, RMBS at
$36, SAMN at $75.

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.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 January 2001

Hello out there stock fans. A very brutal and quick sell off in many sectors of the market
today with the sell off in technology due partly to a major brokerage house downgrading a
number of leading stocks saying that a slowdown in technology is greater than first
thought. This of course brought the house down on many of the best acting stocks. Many
stocks caved in with $10 to $25 losses in just a few hours of trading. Even many of the
better acting defensive issues such as banks, insurance companies, financials,
brokerages and health care moved lower today.

The NASDAQ has had a number of good tries to put in a bottom over the past two
months and so far everyone has failed. A bottom may not be put in until either word is out
that we are finally in a recession or we get that interest rate cut everyone is talking about.
At any rate the NASDAQ seems to be stair stepping down in 500-point moves as the
chart I have tonight shows. If that's the case then the next bounce on the NASDAQ could
come at 2000. https://chartpattern.com/Charts/OTC-01-02-01.gif

I also have another chart of the NASDAQ in candlestick format vs. a daily bar format
which I usually use, showing the NASDAQ compressed to a monthly time frame. Here
you can see a long term rising trend line that dates back to 1990. The trend line is about
to be breached when and if the NASDAQ goes below 2270.

Here is a chart of the once mighty Biotech index and here you'll see it breaking a support
line today as many Biotech issues broke down with everything else.

1/5
Here is a potential winner again in the future but for now it looks like this stock wants to
move lower. A potential short is what is looks like to me.

Last night there were a number of stocks in the active day trader section and lo and
behold most of those stocks did move lower with IDPH moving down best at about $12 on
good volume. QLGC also moved down lower over $11. With the market taking an early
bath today one must always check the health of the market before purchasing stocks.

2/5
With so many of the leading issues plummeting so early in the day one could quickly see
that owning stocks for long positions was not going to be favorable. Always look before
you cross the street.

By the way I heard a report from First Call today that said that of the 950 or so companies
that report to First Call that 52% of these companies said that they will report lower than
expected earnings for this quarter. This doesn't bode well for the NASDAQ breaking out
anytime soon.

Due to today's sharp move to the downside they are no stocks that have set up to list for
shorts or longs as of now. As soon as more do set up I will list them here.

Here is a report on a Biotech stock that should probably move lower along with most of
the other stocks in the market today.

GENZYME GENERAL

Genzyme General (GENZ). Market Cap of $7.6 Bil, Shares Outstanding 87.0 Mil, Float
67.8 Mil, 52 wk high of $103. Last Q earnings $0.58, up 4% from previous Q, up 18%
from year ago. Last Q revenue $192.2 Mil, up 29% from previous Q, up 22% from year
ago.

Think of a biotechnology company that is a relatively safe investment. Does it sound like
an oxymoron? Genzyme General (GENZ) is as good as it gets. It is both a genomics and
a pharmaceuticals play, a company that has turned itself around to face the developments
in the industry. Genzyme General is a division of a holding company, Genzyme
Corporation, which could explain relatively low valuations for the company.

MARKET POSITION

Genzyme General has taken a safe niche in the jungle of biotechnology and
pharmaceutical companies. The company develops and markets therapeutic products
focused on the treatment of rare genetic diseases. With this strategy in mind, the
company avoids brutal competition with established pharmaceutical companies.
Genzyme is concentrated on the research and development of new drugs and proteins
that supplement individuals with enzymes that they lack like in a Type I Gaucher disease.
Treatments and therapies for these and other rare genetic diseases often receive Orphan
Drug Status from the Food and Drug Administration (FDA). This means that the first
company to receive an orphan drug approval in US gains exclusive rights in the market
for seven years.

The company divides itself into two major segments: Therapeutics and Diagnostics. While
the Therapeutics part develops and markets drugs and therapies to treat disease, the
Diagnostic segment develops and markets clinical chemistry and rapid test products. For
example, with the help Genzyme's compounds, one can test the cholesterol level of an
individual, and also make a myriad of other genetic tests. Genzyme General's product

3/5
portfolio includes its patented test for pregnancy, as well as an improved tool for
monitoring diabetes. Currently, the company can do diagnostic tests for chromosomal
abnormalities and plans to develop mutation analysis test, and a point-of-care stroke
diagnostic product. While the Diagnostic area of business provides single digit growth, it
is a steady revenue base and a promising field for the future.

PRODUCTS

In the Therapeutics division, Genzyme General has three marketed drugs: Cerezyme,
Renagel, and Thyrogen. Cerezyme, accounting for most of the revenue, allows for
management of Type 1 Gaucher disease. Year-to-year sales growth of Cerezyme is a
steady 25%. Renagel is another important drug used to treat end-stage renal disease.
Genzyme acquired complete ownership rights of the drug by taking over Geltex for $1
billion. Its sales grew by 35% quarter-to-quarter. Recent studies show that sales of this
drug may prove to be higher than expected justifying the acquisition of Geltex. The
ongoing introduction of the drug on the European market will bring even more growth in
revenues, eventually bringing them to $1 billion annually. Thyrogen, while showing 50%
annual growth in sales, still has little impact on total revenues.

More interestingly, Genzyme has an extensive pipeline of drugs in its pocket. Fabrazyme,
being one of them, is Genzyme's investigational enzyme replacement therapy for patients
with Fabry disease. Genzyme has applied for regulatory approval of Fabrazyme in both
the United States and Europe, and has received orphan drug designation in both
markets. A rival, Transkaryotic Therapies (TKTX) has done the same with its own version
of the drug. The fight between the companies went into the court. A decision on U.S.
approval is expected by mid-January, 2001. A decision on European approval is expected
during the first half of next year. However, the latest press release indicated that FDA
asked for more information for Fabrazyme, delaying the approval by four to six months.

Overall, Genzyme's pipeline consists of 15 therapeutic and gene therapy products in

preclinical and phase trials. Four out of fifteen are in phase III trials, meaning these
products could get approved within a couple of years or so. Five diagnostic tests are also
being developed.

FUTURE PROSPECTS AND DEVELOPMENTS

While Genzyme does not exhibit high revenue growth, the consistency of the revenues
and earnings numbers make it attractive. It is one of the most undervalued biotechs on
the US market. Watch for these developments in the near future:

- FDA decision on Fabrazyme, this could be a major boost for the stock.

- Resolution of the legal action filed by Genzyme against Transkaryotic Therapies.

- Sales of Renagel, and even more importantly, sales of Cerezyne on which Genzyme
depends for most of its revenues and income.

4/5
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 3 January 2001

Hello out there stock fans. A surprise .50 basis point cut by the fed today sparked a
massive and historic rally on the NASDAQ today. Records were posted in points; volume
and percent gain on this historic day. The final totals were the NASDAQ up 324 points on
over 3.1 billion shares and over 14% up in one day.

S D L Inc. (SDLI) was the leading stock today, up with a super move of almost $52 points,
Broadcom (BRCM) up $30, Checkpoint Software recovered all of yesterday’s punishing
sell off and up over $33 with a big spike in volume and the stock closed on the high of the
day. Many of these big moves can be attributed to short covering as one never wants to
fight the fed especially with a .50 basis point cut to start off a new fed easing cycle.

Obviously the impact of much higher rates and oil prices over the past year that slowed
the economy will not go away with this half point cut. More rate cuts combined with lower
energy prices and more time will be needed before the economy and earnings come back
to higher levels. However there still should be many excellent buying and trading
opportunities in the next few months. Many stocks that were setting up prior to
yesterday’s vicious sell off quickly moved back up so that their charts are not far from
looking fair, not great but fair. With a little more institutional support these stocks should
be ready to move into new highs pending positive earnings from these selected
companies.

Here are a few charts of some leading stocks that came back quickly. Should this market
stay positive and not reverse these stocks should do well or at least that’s what they are
saying by being up so near to new highs. Juniper is not near new highs but close to
breaking a long-standing trend line.

1/5
2/5
Here is the latest picture of the NASDAQ and here we see that with today’s huge rally the
NASDAQ broke through one of its resistance lines that I highlighted in yesterday’s letter.

I will say that these stocks had huge moves today and I’m not looking for anything big
tomorrow, but you never know. A rest of some sort would be constructive and I would
bookmark my buy points if a rest does come.

3/5
Here are some potential movers for tomorrow should the market stay positive. They are
for the active day trader only with my technical buy points. CMVT at $106, CIEN at $85,
ELNT at $34, GLW at $57, ISTI at $39, INRS at $51, ITWO at $52, IWOV at $32, MERQ
at $95, MUSE at $59, NETE at $52, NEWP at $93, NUAN at $42, NUFO at $36, OPWV
at $42. These should be more than enough to keep everyone busy tomorrow. By the way
beware an opening gap and sell off early on.

Also good to note is that the defensive issues that have been doing so well for the past 4
months rolled over for the second day in a row as rotation is probably underway now that
the Fed is loosening its grip on money.

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

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 January 2001

Hello out there stock fans. A very poor jobs report on Friday showing job growth has been
reduced from 250,000 jobs being created per month only 6 months ago to around 55,000
a month now. It also showed the lowest number of hours worked per week in the
manufacturing sector since the recession of 1991. This caused stocks to head south on
fears that we are in a recession already and that earnings won’t be there this quarter or in
the coming quarters ahead. An interest rate cut is not going to help earnings for some
time to come.

Almost all stocks and groups plunged lower on Friday with many of the defensive issues
that have held up well over the past 6 months breaking support and moving lower and out
of strong up trends. Utilities, insurance, beverage, healthcare and others have taken a
turn that suggests lower lows are in store for these stocks over the next few months. And
of course all tech stocks broke down too with Biotech’s taking the worst beating on Friday.
One bright spot however was the transportation sector as this group has many stocks
breaking out. The airlines look best in this sector and include AMR, CAL, LUV, UAL,
MEH, DAL, and ALK.

The Biotech index (BTK) took a 10% discount for the day with many Biotech stocks like
Millennium Pharmaceuticals MLNM lowering about 20% intraday before pulling up at the
end of the day. All stocks in this group are headed lower over the next few weeks as the
damage in their charts now is too severe to over come anytime soon. This is also true for
most all stocks in the technology sector.

The NASDAQ so far has proven one thing over and over again, that it can’t hold support
or even find any to speak of. The NASDAQ can’t even put together three days of an up
trend so far. Erosion of confidence has led to one very volatile market. This is one market
that makes the holding of stocks overnight in long position almost impossible.

Due to the market’s wild gyrations and hard sell off of the past two days there are only a
handful of stocks that have patterns in which to list here to trade. So for the active day
trader here they are with my technical buy points. These are for shorts positions only.
NTAP at $54, AVIR at $53, ISSX at $59, EBAY at $30, EPNY at $33, CMVT at $91, STOR
at $19, TIBX at $32, ITWO at $40, and QCOM at $72.

When and if the NASDAQ can get a little more positive, here are a few stocks that are
starting to look fair on their charts. ADIC at $24, MTON at $25, and believe it or not, a few
of the Semiconductor equipment stocks are basing nicely like BRKS at $35, AMAT at $50,
NVLS at $42, UTEK at $25.

Here is the chart of the NASDAQ and we can see that the descending trend is still intact
regardless of the recent interest rate cut.

1/2
Again the market is keying on earnings coming up and to be sure there are going to be
many misses by many companies that will cause numerous stocks to gap down and
disappear from our radar screen. It might be wise to avoid holding any tech stock in long
position until earnings are out of the way.

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 January 2001

Hello out there stock fans. A very tough opening once again with the Biotechs taking the
brunt of today’s sell off. The NASDAQ once again flirted with its lows set just a week ago
before end of the day buy programs combined with some short covering lifted many
stocks. Most of the buying was centered in the semiconductors.

Many stocks that were down as much as $10 finished the day up a few bucks and some
even finished the day with $6 to $10 gains like Newport Corp (NEWP) and S D L Inc.
(SDLI) both up over $10 each. In fact both of these once high flyers are making tonight’s
buy list in the day traders section.

There are a number of stocks that are beginning to show some very nice horizontal
consolidation, which is very positive. Should this type of basing action continue and these
stocks post good earnings and give good guidance going forward then these stocks
should have a chance to move higher in the coming weeks and months. Let’s take a look
at some potential movers and their charts.

1/4
2/4
A number of other stocks that are looking good in their charts are EMLX, BRCM, AEOS,
ICIX, UTEK, RMBS, and APOL to name a few of the better tech stocks. And if things stay
this way numerous others will start to look good too.

3/4
After the bell today i2 Technologies (ITWO) announced that revenues and earnings would
be better than expected. SAP did the same earlier in the day. The group is up in after
hours trading. Let’s see if this exuberance holds up tomorrow during trading.

Here are some picks for the active day trader for tomorrow should we see follow through
from today’s late day close. AEOS at $49, APOL at $50, AREM at $44, BRCM at $95,
ICIX at $12.50, JDSU at $46, UTEK at $27, KLIC at $41, NEWP at $81, PMCS at $73,
QCOM at $79, RMBS at $43 and SDLI at $166.

Hopefully we are seeing some bottoming action here in the NASDAQ with this being the
third time we are down at this level. Let’s hope so and I’m more positive now that some
horizontal bases are beginning to appear.

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.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 January 2001

Hello out there stock fans. Nokia (NOK) announced a slowing in hand sets of cell phones
today and companies that sell products to NOK took the biggest hit today with stocks like
Powerwave (PWAV) and others taking hefty discounts of up to $8 before pulling up to
close modestly down by the end of the day.

This news had little effect on the rest of the NASDAQ today as this index moved up 77
points at it’s high point today before settling back down to close the day up a modest 44
points. Many leadership type stocks moved well with Broadcom (BRCM) moving best, up
$8 intraday on news that it acquired another company to broaden its scope of products
offered. Many other leadership stocks tacked on small gains too before giving up much of
those gains by the end of the day. A very boring day all in all if I may say so.

The market is clearly in no mood to rally back up to higher levels until earnings and future
projections have been posted. This will start happening after the close tomorrow as
Yahoo! (YHOO) kicks off the earnings season with its numbers and guidance for the short
term after the bell tomorrow.

I will say that after a near record decline in the NASDAQ over the past four months the
best thing to look for at this point is horizontal basing action. We are starting to see that in
a number of the semiconductor stocks. In a number of weeks some of the other
leadership stocks such as Brocade (BRCD), Juniper Networks (JNPR) and Broadcom
(BRCM) could have similar horizontal work, which I believe is needed before we see any
meaningful move out of the doldrums that we are in now on the NASDAQ. BRCM is far
ahead of JNPR and BRCD right now.

Until then it’s basically chart appreciation time and tonight I have one chart of a company
in the apparel group that has super earnings. However high volume is showing that this
stock has topped and is going to move lower. Here is the chart showing the high volume
as the stock moves lower.

1/4
Until stronger charts build for a model portfolio it will stay in cash. Until then here are a
few day trader picks to look at for tomorrow. That is if the market stays positive. EXTR at
$42, MVSN at $59, MVSN at $56, RBAK AT $37.

Tonight Maya has a report on Sycamore Networks. She believes that this company
warrants another report due to strong internals that she sees. So here it is.

WHAT’S IN STORE FOR SYCAMORE

Sycamore Networks (SCMR). Market Cap of $9.5 Bil, Shares Outstanding 272 Mil, Float
139 Mil, 52 wk high of $172. Last Q earnings $0.02, down from previous Q, up 200% from
year ago. Last Q revenue $120.5 Mil, up 33% from previous Q, up 517% from year ago.

It is not a secret there are major changes going on in all levels of information networks.
One of the prevalent changes is the movement from using an electron as a carrier of
information to using a photon. Today, all sorts of equipment is being built using fewer
electronic parts, which are being replaced with photonic components. What are the
advantages of this shift?

- It’s cheaper

- More efficient

- Takes less space

- Saves on power bills

- Offers incomparable bandwidth opportunity!

2/4
SYCAMORE’S POSITION AND PRODUCTS

Sycamore is one of those ambitious companies that want to help the world go all-optical.
Sycamore has a smart strategy allowing its customers to gradually update their existing
networks to offer more bandwidth. Clients can decide for themselves how aggressive they
want to be with their network upgrades. Potentially, this gives Sycamore, whose
customers already include Vodafone and Bell South, an even broader base of clients,
ranging from traditional carriers to emerging providers.

Currently Sycamore offers three types of products - transport products, core switching,
and edge switches. Keep in mind that the optical market, including Access, Transport and
Switching, is estimated to reach $50 billion by 2004 according to Pioneer Consulting.

- TRANSPORT. Intelligent Optical Transport Nodes - SN 6000 and SN 8000. SN 8000

sales are outpacing any other product sales currently within the company. There is heavy
competition in the long-haul space including Ciena (CIEN), Corvis (CORV), Nortel
Networks (NT) and others. This is a tough area, but Sycamore is doing well considering
the competitive challenges it faces.

- CORE SWITCHING. Intelligent Optical Switch - SN 16000 that helps provide high-speed
services is a new and promising product. Currently there are fewer competitors in this
area. They include Ciena (CIEN), Cisco (through acquisition of Monterey Networks) and
Tellium (private).

- EDGE SWITCHING. This is the newest category of products for Sycamore and used by
carriers in the regional, metro and access environment. The company began offering SN
3000 and SN 4000 after it acquired Sirocco Systems last year.

FUTURE CRITICAL DEVELOPMENTS

- Relationship with Williams

Watch for the development in relationship with Williams Communications, Sycamore’s

most valuable client that contributed the biggest portion to Sycamore’s revenues for the
latest quarter as well as the entire year. Last fall, Williams sold its full share stake in
Sycamore to make investments into its own networks. Now, Williams might not be so
interested in continuing to buy Sycamore equipment. It has struck deals to buy some gear
from competitors such as Ciena and Corvis. A good confirmation could be William’s
decision to purchase Sycamore’s SN 16000 switches, which Williams is currently testing
according to Sycamore’s CEO Dan Smith.

- Announcements of new products and clients

With its acquisition of Sirocco Systems, Sycamore should start announcing successful
completion of trials and shipments of Sirocco’s edge switches to clients. The company is
expected to start realizing revenues from these new products as early as the current

3/4
quarter. New customer announcements will be seen as positive developments and would
make the company more diversified in its revenue sources and less dependent on a
single client.

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 10 January 2001

Hello out there stock fans. A tough opening today for some of the market leaders like
Juniper Networks (JNPR) which gapped down to a low of $106 on a downgrade from a
new analyst. However within the next few hours a very strong rally ensued lifting all ships
and losses quickly turned into profits. One of today’s standouts was Broadcom (BRCM),
which was up over $12 on very heavy volume.

Then just as quickly as the profits were given they were taken away as John Chambers,
CEO at Cisco Systems (CSCO) said that capital expenditures were slowing and as a
result this would be a challenging year. Stocks like JNPR quickly dropped 14 points on
the news. It took the rest of the day for many of these stocks to get back to where they
were before the announcement. Some in fact went above their prior highs by the end of
the day and almost all of them closed strong.

After the bell, Yahoo! (YHOO) reported earnings in line with expectations but said
revenues and earnings going forward would be significantly less over the coming year. In
after hours trading the stock dropped some $6 to $24 in heavy trading. Also Rational
Software (RATL) reported earnings that were .02 better than expected and the stock is up
in after hours trading as is Macrovision (MVSN) which said it would beat earnings this
quarter when it reports.

Anyway last night I talked about the fact that many stocks were going horizontal which is
considered very good. Today a number of stocks lifted off from some of these formations
fractionally and this should continue over the next few days to weeks. Here are a number
of stocks with good horizontal charts and good revenue growth.

1/6
2/6
I’m also seeing a number of stocks that are forming wedges and some that are ready to
move out from the confines of descending trend lines. Here are a number of strong
contenders that are poised to break out should this market stay positive. Again these
stocks have superior earnings and revenue growth.

3/6
4/6
One stock is acting so well I will start the new year’s model portfolio with it and that stock
is Broadcom (BRCM). I will take 20% of the new portfolio’s $100,000 equity, which goes
on margin to give me 200,000 in buying power. Therefore I will buy $40,000 worth of
BRCM tomorrow at its’ average price. I want to stay as close to the trend line as possible
though so I expect to pay around $107 to $110. I will not pay over $112 for it. So for a
$110 stock I will buy around 400 shares, which is a little more, but I need to round off. In
this case I will round up, as I like the stock a lot.

By the way earnings on BRCM are superior. Last quarter they were up 150% to .30 while
revenues were up 129% to $319 million. They are also buying numerous other
companies, which should not only strengthen their product lines but add to the bottom line
in coming quarters.

Here are some potential movers for the active day trader for tomorrow. QLGC at $75,
BRCD at $86, RFMD at $24, SCMR at $40, SDLI at $172, SEBL at $71, STOR at $21.

No stops on BRCM tomorrow stock fans. I do by the way expect a rough opening
tomorrow on the YHOO news. I will 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.

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 January 2001

Hello out there stock fans. The NASDAQ has for the first time in over three months had
three consecutive up days. It has also traded above the 2526 area, which was a small
resistance area. It is now faced with stiffer resistance in the coming days as it has now hit
its long-standing descending trend line. Meanwhile the DJIA is losing steam, as are many
of the defensive issues on the NYSE as rotation into technology and more speculative
issues continues. This rotation is befitting the NASDAQ and should continue for some
time. This will also help the S&P 500 as it now contains many technology stocks. Here is
a chart of the NASDAQ

One of the more positive things playing out right now is that the street is no longer selling
bad news like it used to as we saw in HWP and GLW during the week. Last year they
were selling good news and strength but now they are buying weakness and bad news.
This sea change in attitude should help the NASDAQ over the next few weeks and
months.

Over the next two to three weeks we will see the majority of earnings come out which
should provide lots of volatility to go with them. Right now companies that are reporting
better than expected earnings are moving up fairly well while those that are missing
earnings are being punished as usual. Therefore one may want to step aside on

1/3
purchasing stocks until earnings are posted. You can get a fairly complete listing of
projected earnings and the dates they are to be released in our web site in the member
login area under Earnings Calendar.

https://chartpattern.com/cf/login.cfm

Broadcom (BRCM) was added to the model portfolio on Thursday as it was in my target
zone. The stock traded up quickly to $112 before moving lower in that morning’s market
sell off down to $104. The morning average between my buy points was $110 as the
stock traded between my zones of $107 to $112. So into the model portfolio it goes 400
shares at $110. Stops will now be set at $103 just in case. There are a number of other
stocks that are very close to being added to the model portfolio and we should see some
more going in this week. Again some may go in by e-mail intraday so please check your
email during the day.

The NASDAQ is very extended right now on my short-term oscillator so I wouldn’t be

surprised to see a minor sell off over the next few days to maybe even a week or more. I
do however expect to see strong stocks holding on to recent gains. With the short
overbought reading in mind there are a number of stocks that seem poised to move high
but keep in mind the short-term readings.

Here are some day trading picks with my technical buy points. AEIS at $31, ADI at $54,
ANEN at $61, QCOM at $76, PLT at $51, CENL at $16, ADSK at $36, VECO at $61,
MYGN at $57 and EMLX at $93.

2/3
During the week we saw a number of stocks break though their descending trend lines
like Juniper Networks (JNPR) and then saw them sit there with no conviction. This tells
me these stocks are for one reason or another not ready to move up. They may be
waiting for earnings before they get going. Be careful on stocks that hit buy points and
don’t move.

During the week there will be many more stocks that will set up further to show in the
charts. When they do I will have them for you so stay tuned. See you 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 16 January 2001

Hello out there stock fans. Quiet trading at the start of the day as the market was on hold
pending the outcome of earnings due out tonight and the digestion of last week's big
move. Numerous stocks were up slightly until late in the morning when profit taking set in,
dropping many stocks 3 to 8 points and into the red for the day.

Today after the bell INTC reported earnings that were in line with expectations and the
company gave guidance for lower earnings and revenue going forward. INTC is up $1 in
after hours trading. Juniper Networks (JNPR) reported earnings that were much better
than expected and the stock is up $11 in after hours trading to $138. Applied Micro
(AMCC) reported earnings that were better than expected and this stock is up $5 to $75
in after hours.

Model portfolio stock Broadcom (BRCM) seems to be taking a coattail ride of this better
than expected news and it too is up big in after hours trading to$125. I hear it reports
earnings tomorrow after the bell. Looks like a very big day tomorrow stock fans and
hopefully tomorrow's CPI report will not damage the fun.

Meanwhile due to California energy problems, which were magnified today by Southern
California Edison's suspension of payments due to a potential cash crunch, alternative
energy stocks were up well today. Stocks like CPST, EFCX, BLDP, PLUG, APWR, FCEL
and HPOW all posted gains of about 10% for the day before some sold off near the end
of the day. One stand out here is AstroPower Inc. (APWR)

Here is one chart that is back once again after some nice gains for us last week.

1/3
Here are some stocks for the active chart reader to look at with my buy points for
tomorrow. NEWP at $93, AVNX at $56, STOR at $28, TIBX at $44, TXN at $50, VRTY at
$30, WEBM at $86, AMCC at $76, BLDP at $70, CMVT at $110 EMLX at $94, EPNY at
$47,DIGL at $35.

Tonight Maya has prepared a timely report on Broadcom (BRCM) our lone model portfolio
stock.

BROADCOM: FROM CONFRONTATION TO COOPERATION?

Broadcom Corporation (BRCM). Market Cap of $27.7 Bil, Shares Outstanding 235 Mil,
Float 164 Mil, 52 wk high of $274.75. Last Q revenue $319 Mil, up 30% from previous Q,
up 129% from year ago.

Broadcom, the leading developer of telecommunications chips, has made 18 acquisitions

throughout its relatively short life as a public company. This aggressive strategy is paying
off - the company is the fastest US semiconductor company to reach an annual revenue
of $1 billion. No other chip company has ever moved at such an accelerated pace. And
Broadcom is not about to stop. In the first days of January it made yet another killer
addition to its portfolio scooping up ServerWorks for roughly $1 billion in stock.

Expensive? At first look, maybe. But ServerWorks is not an inexperienced start-up with a
limited list of clients. In fact, it is profitable. ServerWorks makes input/output circuits that
speed up communications between the central processing unit (CPU) and the other

2/3
devices such as networking cards. ServerWorks products are used by giants like Intel,
Compaq Computer, IBM, Dell Computer, EMC. The new purchase is expected to
contribute $300 million of revenue to Broadcom in 2001.

However, the most valuable part of the deal may be ServerWorks' technology agreement
with Intel that makes ServerWorks' products compatible with Intel chips up to 2008. This
year, ServerWorks is expected to introduce chipsets for the first Pentium 4 chips for
servers.

By contrast, there has always been a lot of tension between Broadcom and Intel. Both
companies have filed a series of intellectual property lawsuits against each other last
year. The hostility has been rising further after Intel began its expansion plans from the
weakening PC and PC-related business into the rapidly growing communications market
where Broadcom is one of the leaders.

By acquiring ServerWorks, Broadcom has made a move to get closer to Intel's heart, it's
processor. Considering Intel owns about 5 percent of ServerWorks, a question arises
whether it is better for Intel to change its confrontation policy to a cooperation policy.

The market has obviously appreciated Broadcom's move. Since the announcement of the
ServerWorks acquisition, Broadcom's stock has soared around 34 percent. The company
will be reporting its quarterly earnings results next Tuesday, January 23.

Read more about Broadcom in the November 3 report in the member login area of the
site.

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 17 January 2001

Hello out there stock fans. A very strong opening today with many stocks gapping up at
the open due to very strong earnings and forward projections from Juniper Networks
(JNPR) and Applied Micro Circuits (AMCC) yesterday. Today’s CPI data of .01% rise in
the core inflation rate was also a strong factor as this bodes well for another interest rate
cut at the next Fed meeting at the end of this month.

Most of the big gains today were in the fiber optic and storage (SANS) stocks. Stocks like
SDLI up a whopping $22 at the close. Other big movers include BRCM up $10, PMCS up
$11, AVNX up $11 and Emulex (EMLX) breaking out on 1.5 times daily average volume
and hitting new highs and closing into new highs at $98.

EMLX has earnings due out tomorrow after the bell and this stock looks good on the
charts, but it has acted a little strange lately or I would have added it to the model portfolio
today. There will be plenty of time to add stocks to the model and soon I will have them to
add.

The best news of the day however is that the NASDAQ finally broke through that very
long standing descending trend line that has controlled the NASDAQ for over three
months. Volume was huge at nearly 2.8 billion shares, which is technically good.

The NASDAQ did however run up against two areas of resistance once it got over the
resistance line which was the upper trading band and the descending 50-day moving
average line. Let’s take a look at these two areas of resistance.

1/3
A number of stocks reported earnings after the bell today and most of them beat the
street estimates and are hopping all over the map in after hours trading. Most of the
wildness comes from their conference calls with analysts about an hour after they release
earnings. These stocks include ITWO, RBAK, IBM and MERQ. MERQ beat the street by
.04 to .28 cents and raised earnings going forward. Their stock is up $3 in after hours
trading

Here are some picks for the active day trader for tomorrow. AGIL at $49, AMCC at $82,
SEBL at $77, VRTS at $98, WEBM at $89, MUSE at $69, PPRO at $20, QLGC at $82.

Many stocks are coming around on the charts and I expect to have many more stocks
ready to roll in just a few more days. This weekend’s letter should have 4 to 6 stocks
ready to break out of good formations.

Maya will be back tomorrow with another good report on a strong stock 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.

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 January 2001

Hello out there stock fans. Earnings were very positive today on all stocks that reported.
These include MSFT, NT, CMRC, EBAY, CHKP, and MERQ. After the bell EMLX reported
blow out numbers and the stock is up to $108. Tomorrow's stocks are going to be gapping
up big at the open so you may want to wait 20 to 30 minutes before buying any stock if
that’s what you want to do.

Tomorrow I will add two stocks to the model portfolio ONLY if they trade down into my
zone. I will add 300 shares of CMVT if it trades between $116 and $121. I will add 400
shares of EMLX if it trades between $102 and $108. If these stocks never trade in these
zones, then I’ll pass on adding them.

Normally if a stock gaps high at the open fast traders will sell the big gap at the open and
then re-buy it after the stock trades down by about 50% of the opening gap. So if a stock
gaps up $10 at the open then one may want to wait for the stock to retreat $5 before
considering buying it. This should happen on CMVT and EMLX. Please note this doesn’t
happen all the time but this is the second big gap open in three days so it might happen.
Also must stocks are now above their upper trading bands which can often bring in
sellers.

Here is Maya’s report.

CAPSTONE TO LIGHT UP CALIFORNIA WITH JET ENGINES

Capstone Turbine Corp (CPST). Market Cap of $2.9 Bil, Shares Outstanding 75.7 Mil,
Float 47.7 Mil, 52 wk high of $98.50. Last Q revenue $6.2 Mil, up 2% from previous Q, up
716% from year ago.

For decades the fire torches above the oil fields and refineries have been burning around
the clock. It is a horrible sight. Can’t all these wasted resources be utilized in a beneficial
way? It seems the solution may finally be at hand. After 12 years of diligent research and
development, Capstone Turbine Corp, from Chatsworth, California came up with the first
commercially available energy module.

WHAT IS SO SPECIAL ABOUT CAPSTONE?

Having an impressive underwriter list, and an equally impressive performance, this IPO
which came public in June, was on the 'Top Ten IPOs in 2000' list. The hype behind the
company is a combination of several factors: Its proprietary technology, strong partner list,
good backlogged order list, and, of course, a hot sector. The 30kW and 60kW
microturbines that Capstone is producing may solve many energy problems.

1/2
PRODUCT APPLICATIONS

- Utilization of trillions of cubic feet of gas that is wasted annually on the oil and gas fields.

- Smart combination of the electricity coming from Capstone Microturbine and the power
grid using intelligent software.

- Reliable back-up power and peak-shaving ability.

HOW CAN CAPSTONE ACHIEVE ALL THAT?

With a help of technology that resembles a jet engine. It burns fuel with great efficiency
and with little malignant effects on the environment. The most important advantage is the
turbine’s ability to run on many different fuels that are not currently utilized in any way. Its
unique software allows the turbine to adjust from one fuel to another without difficult
upgrades or reconfigurations. The company is seeing increasing demand for its products.
In 1999, it sold about 211 units while last year’s shipment stands at around 700. Williams
Energy placed a three-year order for almost 2,000 units while a number of Japanese
companies ordered another 400. Business is picking up and Capstone has just
announced the completion of its Los Angeles 100,000-ft facility. It was a big event and
Mayor Riordan honored the company with a comprehensive speech at the opening
ceremony. With this addition, the company will have an annual capacity of 20,000 units.

Capstone is expecting a profitable next year. High natural gas prices can generally be
interpreted as good news for the company. High prices create a demand for efficient
energy generating systems like that of Capstone. Positive developments would include
the completion of 125kW microturbine and shipments of its 60kW microturbine.

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.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 January 2001

Hello out there stock fans. A very productive week on the NASDAQ with large gains
made in so many stocks. Many stocks have already doubled in price in just one week
while others have made moves of 50 to 60 % in just 8 to 10 trading days. Most of the big
gains are in the fiber optic sector and in many of the smaller cap stocks like DIGL and
EXFO.

Most all stocks that have made significant moves are now at, above or very close to their
upper trading bands, which can often mean further progress is ahead of us in time.
However most of these stocks now need a rest to consolidate their gains before moving
higher again.

Numerous heavy weight tech stocks will report earnings this week and a few of them to
watch out for are JDSU, SDLI, BRCM, NEWP, AVNX, MCDT, CORV, QCOM, SNDK and
VTSS. All of these stocks could have significant moves when they report their numbers.
NEWP, BRCM and SDLI look like the best candidates to focus in on as their numbers
should in the .35 cents area or more per share.

Model portfolio stock Broadcom (BRCM) reports earnings after the bell on Tuesday and
coincidentally the stock has set up with a fairly nice Cup and Handle formation. This stock
now has a proper base from which to move higher should the street like the numbers.
Let’s take a look at it here.

1/4
Here are a few other stocks with decent chart patterns to consider looking at for buying.

2/4
For those of you that are interested, here is a list of all of the strongest fiber optic and
storage stocks with a few other strong tech stocks mixed in that I follow during the day on
my real time screen. AVNX, PMCS, NUFO, OPLK, NUFO, BRCM, BRCD, EMLX, CIEN,
NEWP, AMCC, MERQ, SDLI, JDSU, WEBM, EXFO, DIGL, CMVT, CHKP, ONIS, SONS,
AVCI, AMCC, MUSE and JNPR.

On Friday I added two stocks to the model portfolio, Comverse Technology (CMVT) and
Emulex (EMLX). CMVT opened the day in my 'zone' and had no significant volume and
sat there most of the day and eventually came down a few points to close the day at
$113. EMLX gapped higher at the open like many other stocks that day and in twenty
minutes like I said it might do, the stock came down 50% to $103 from the opening price
of $109. So 300 shares of CMVT at $116 and 400 shares of EMLX at $105 go into the
model portfolio. Stops for all three stocks are as follows: BRCM at $115, EMLX at $94
and CMVT at $105.

Monday I will add 300 shares of Checkpoint Software (CHKP) to the model portfolio. This
represents about 22% of the total purchasing power of the model portfolio. The chart on
CHKP is rebuilding nicely and the earnings were some of the best in the market to date.
My buy zone for CHKP is $148 to $154. Any trades in here on Monday and the stock
goes in.

I will see you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 January 2001

Hello out there stock fans. A rather mundane day today as the NASDAQ took the day off
to consolidate it's recent 25% move. Also DELL Computer pre-announced that it would
miss already reduced numbers which caused many stocks to open with a gap down then
proceed lower for most of the day. Meanwhile DELL, which opened lower, closed near it's
high for the day.

After the bell today a prior recent selection here at $38, Openwave Systems (OPWV)
reported much better than expected earnings with a gain of .9 cents vs. an expected loss
of .3 cents. This stock is up $3 to $57 in after hours. Also after hours Texas Instruments
(TXN) reported earnings that were .2 shy while Vitesse Semiconductor (VTSS) beat
estimates by .1 cent and both semiconductor stocks are down $3 to $6 respectively.

Today Checkpoint Software was added to the model portfolio at $148. This stock like
many others opened lower in my target range before moving lower below that range. Late
in the day the stock had a decent close, pulling itself up to close down just a fraction for
the day. Last Friday this stock closed on its high for the day and I thought this stock might
run up to $160 today which is why I thought now was as good a time as any to put this
stock in the portfolio.

We now have 4 stocks in the model portfolio, BRCM that reports earnings tomorrow after
the bell. EMLX, which might need another day of rest before moving back up, CHKP
which as you know I added today at $148, and CMVT which may take another day or two
off before it gets moving again. New stops to take effect tomorrow for all stocks are as
follows; EMLX at $91, CHKP at $135, BRCM at $114 and CMVT at $105. This is due to
expected volatility at the open tomorrow because of TXN and VTSS’s earnings that were
posted today.

Lets take a look at the NASDAQ chart and see what it's looking like as of today. Not too
bad if you ask me.

1/3
Due to the big move recently there are just a few stocks that might turn up tomorrow with
my buy points. NOPT at $15, PSFT at $54, PWER at $48, QCOM at $76, and XLA at
$13. These are the only stocks that have set up with pivot points but most are not that
great.

Today we saw last night’s selections WEBM and NUAN move with the market. WEBM
broke out at $93 but not on enough volume so it fell back into the handle in a negative
market. NUAN is still resting and could move at any time. Both are waiting for earnings.

More charts will set up in a day or two and I will have them for you as usual.

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

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 23 January 2001

Hello out there stock fans. A nice horizontal pattern on the NASDAQ with little downside
action over the past few days gave way today to a sizable gain in numerous leading
stocks today. The NASDAQ moved up 82 points to close at its highest level in 6 weeks.

Before the bell today EMC Mass. reported earnings that beat street estimates by .02
cents which helped all stocks in this storage group like our model portfolio stock Emulex
(EMLX). EMLX moved up over $11 today and closed the day at $109. Other model stocks
fared well today too with CMVT moving up and almost clearing the base completely. It
closed up $8 to $119 while CHKP started out slow today but got going mid day and it
almost touched $160 but pulled back late in the day to $154.

The last of the model stocks Broadcom (BRCM) was all over the map today in
anticipation of earnings due out after the bell. It hit a low of $123 before a late day surge
pushed the stock near new move highs just before the close. After the bell it beat the
street earnings estimates by .01 and the stock after being down briefly shot up to close
after hours trading over $141. Tomorrow's open should put this stock over the new buy
point of that Cup and Handle pattern that I showed you the other day.

The model portfolio, which as you know is a margin portfolio, is now up 12% for the year
on its original investment. Since it’s a margin portfolio that started with $100,000
multiplied by 2 this gives it buying power of $200,000. I can now take that extra $12,000
and multiply it by 2 and it now has another $24,000 in buying power. The original 4 stocks
cost us $164,000 total. I subtract $164,000 from the total buying buyer of $200,000 and
this leaves us with $36,000 in buying power. I now have $12,000 times 2 equals $24,000
plus $36,000 and this gives me $60,000 in buying power.

Tomorrow I will buy about $45,000 worth of JNPR as it breaks it's descending trend line at
$140. I will buy 300 shares of this stock as it breaks the trend line at $140 but pay no
more than $143. This will almost max out the models buying power including gains until
more money is generated.

You can get a complete update of the current model portfolio in the web site in the
member login area.

After the bell today a number of stocks reported super earnings. Siebel Systems (SEBL)
reported stellar earnings and the stock is up some $8 after the bell. CPQ reported good
earnings and said prospects are good going forward. This stock too is up in after hours.
Other stocks like AVNX and QLGC report better than expected earning but are down a
few bucks in after hours trading. I suspect these two stocks like VTSS today will come
back from a lower opening, as buying weakness seems to be in vogue since the Fed.’s
cut interest rates.

1/5
Now on to some charts. JNPR is soon to be our newest model stock.

Here is the Biotech index and here you can see that it is just now breaking out from its
constraints.

2/5
Here are some stocks to look at for the active day trader with a good chart program. The
price is my buy point. AMCC at $85, ARBA at $42, CIEN at $103, EXTR at $48, MERQ at
$95, NUFO at $54, SONS at $41, and TIBX at $47.

Now Maya has a report on a stock that I’ve had here a number of times lately at much
lower prices, NUFO.

FIBER OPTIC’S NEW FOCUS

New Focus Inc (NUFO). Market Cap of $3.4 Bil, Shares Outstanding 58.3 Mil, Float 30.3
Mil, 52 wk high of $165. Last Q earnings $-0.02. Last Q revenue $22.3 Mil, up 54% from
previous Q, up 233% from year ago.

Continuing with our coverage of the leading companies in the fiber optic space, we would
like to turn your attention to another emerging player, New Focus (NUFO). New Focus is
among a few strong contenders to come up with breakthrough products for the next-
generation of optical networks.

WHAT'S NEW FOCUS?

Founded in 1990, New Focus started out in the business of manufacturing photonic tools
for commercial and research applications. With time, it grew into a diversified company
with expertise in active and passive fiber optic components that help increase the speed
and capacity of fiber optic networks. Today New Focus is an innovative early mover into
the optical component space which market is estimated to grow over $20 billion in the
next few years. Its recent acquisition of JCA Technologies will help New Focus to

3/5
concentrate their effort in this fast growing space even more. Its biggest customers
include Corvis Corp (CORV), Corning (GLW), Alcatel USA (ALA), Ciena (CIEN). Yet
according to New Focus, the best news is yet to come. The company’s research team is
working on developing a compact tunable laser and they expect to have it ready in the
first half of this year. We could write a separate report explaining what tunable laser is but
for now we will just say that development of such a product is currently one of the
greatest obstacles in the further evolution of optical systems. Dozens of leading optical
component makers including JDS Uniphase (JDSU), Nortel Networks (NT), Lucent
Technologies (LU), ADC Telecom (ADCT) are working towards overcoming this hurdle.
Once this problem is solved it’s going to open the door for the next generation of all-
optical systems and modules with new capabilities. And New Focus hopes to be in the
ranks of the primary beneficiaries.

WHAT’S BEEN MOVING THE STOCK?

The gigantic move behind New Focus’s stock in the recent weeks can be justified by two
different factors besides the overall improved general market conditions. First, the Gilder
Technology Report, popular among investors, has been issuing favorable opinions on the
company and its ongoing progress within the industry. The second reason can be
associated with an anticipation of the company announcing a new big client. This is
always huge news for any company especially the one with a smaller customer base.

WHAT WILL MOVE THE STOCK?

It will be very critical to see how the transition of the acquired JCA Technologies will go
and how successful JCA’s products will be with the customers. Even more importantly will
be to monitor how soon New Focus starts testing its tunable lasers and whom it will be
testing those new products with.

Looking more in term, keep in mind New Focus will be reporting its financial results on
Tuesday, January 30.

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 24 January 2001

Hello out there stock fans. A fair day today with the NASDAQ up slightly during the day
but leadership stocks, which are the fiber optic and storage stocks, came under pressure
during the day. Numerous stocks that closed strong yesterday became limp and lifeless
during the day today and eventually closed down by the end of the day.

The market is very over bought to be sure which is not uncommon at the start of a new
easing cycle, but its romance with the first interest cut may be wearing thin. I say this
because after the bell today many leading stocks reported much better than expected
earnings numbers and still took a beating in after hours trading. Corning (GLW) beat the
street handily but this leading maker of fiber optic products said that business going
forward is softening. This 'softening' seemed to be the main cause for stocks like SDLI,
CIEN and other stocks in this field to weaken $3 to $6 in after hours.

Many other stocks in non-fiber area also had good earnings numbers out today like
Versign (VRSN) and Veritas Software (VRTS). VRSN is lower in after hours while VRTS
is unchanged after being up $3 and McData (MCDT) is up $2 to $63. Newport Corp
(NEWP) also beat the street but said it sees business flattening out for the next quarter.
NEWP got crushed in after hours down $15 before coming up $5 to $98.

Broadcom (BRCM) had a good opening today and it even attempted to break out of its
handle but it too wakened with the market until heavy mid day selling came into this stock
and pushed it down to a small support level at $123. Two other model stocks moved up
very well with CMVT hitting an all time new high today before giving ground but still
closed up $2. CHKP moved swiftly to $160 before pulling back to close the day down $4
to $149. EMLX opened lower and stayed there most of the day with a close at $103.

Juniper Networks barely touched my buy point at $140 but volume was very light which
signaled no conviction. This spells trouble and before you knew it the stock pulled back to
$134 by the close. However since it hit the buy point I am putting it in the model portfolio
at $140 like I said I would. Stops for all model stocks are as follows, EMLX at $94, CMVT
at $114, CHKP at $137, BRCM at $120 and JNPR at $122.

Even though the NASDAQ is doing many positive things such as breaking out of that 4
month descending line that we saw a few weeks ago and being above its 50 day moving
average line for the first time in a long time, tonight I see a potential fly in the ointment on
its chart.

This pattern that I will show you here tonight is a very bearish pattern and we saw it a
number of times during our NASDAQ run south from 4200 to 2250 late last year. It’s a
rising ascending wedge and it can be a nasty pattern that can be very damaging. A break

1/3
below the lower rising trend line at about 2743 and no telling what may happen on the
NASDAQ. Make sure your stops are in place at all times stock fans.

Tomorrow Mr. Greenspan speaks and I think the market will be on hold until he gives a
few hints as to what the Feds may do the following week. Will it be a .50 basis point cut or
just a .25 basis point cut? A .25 cut and this market may head south once again, a .50 cut
and we just might head up to resistance at 3028.

The market has moved so much, there are no other charts or day trader selections. I will
see you on Sunday however and Maya will be back tomorrow with another report, this
time on AVCI.

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 28 January 2001

Hello out there stock fans. A very negative day on Thursday as the NASADQ once again
closed on it's low of the day. A close on it's low is so often followed by much further losses
on the NASDAQ the following day. However after Friday's negative opening with gaps
down on many stocks, buyers emerged in great numbers and volume picked up heavily.
This drove many leading stocks back up and a number of them closed at or very close to
their highs of the day i.e. EMLX, BRCD and SDLI.

To me Friday’s action represents a reversal of Wednesday's and Thursday's negative

action. Thank goodness too because if Friday's action were bad it would have busted up
many chart patterns. Many patterns held up fine and tonight I have a few to show.

Should we get that .50 basis point interest rate cut that is expected on Wednesday the
market looks poised to move higher. Resistance however is close by on the NASDAQ
should a big rally ensue and that point is 3028, which is a prior rally failure high.

Lets take a look at the best-defined chart patterns there are to offer in the market as of
Friday.

Mercury Interactive (MERQ) This company just reported better than expected earnings
and raised estimates for the next quarter. This is music to street ears and the stock
should be rewarded going forward. Earnings for this last quarter were up 65% to .28
cents while revenues were up 62% to over $97 million. There are about 76 million shares
that float and this stock is very heavily owned by the institutions. Buy point on this stock is
as it moves over my trend line at $97. In fact this stock looks and acts well so I will add
300 shares of it to the model portfolio at $97.

1/5
A number of the B2B stocks are looking good so here are a few of the charts.

2/5
This stock looks fair but probably not a big mover.

MODEL PORTFOLIO

3/5
Volatility remains tremendous as we saw a number of the model stocks moving all over
the map this past week. Four of the five stocks got hammered with three of these four
stocks snapping back quickly which is a good sign for the ones that did.

BRCM hit the stop of $120 and quickly dropped to $95 on a downgrade. JNPR is not the
same animal it used to be since earnings. It gets checked out of the model at $122. On
the other hand EMLX hit the stop at $92 on a small gap down. It gets checked out of the
model portfolio at $92. CMVT is wild, as are many stocks in this highly volatile NASDAQ
market. I think this stock like EMLX will be back soon. CMVT hit my stop at $114 and is
out too.

With EMLX this gap down might have happened due to members’ pre setting stops that
market makers could see. Market makers therefore drop the stock down to clean out
these stops and thereby collect stock on the cheap before rallying up the stock. Please do
not pre-set stops, it not only hurts you but everyone else. EMLX is a very strong stock
and I will add it back to the model portfolio as soon it looks good again.

MERQ listed above is the next candidate for the model portfolio. When it breaks $97 I will
add 300 shares to the model portfolio. Once the stock has cleared $97 then this stock
should never go below $97 again. Volume must increase by 50% of the daily average at
least, which means this stock needs to trade about 3 million shares by the end of the day.

After MERQ hits $97 then this stock will be a model stock. This stock should continue
forward from then on and never look back. Should the stock ever go below that trend line
again for any reason I will take it out of the model as it would have broken down. A stop
will be set at $94.

Here are some picks for the active day trader with my technical buy points. OSIP at $64,
PDII at $99, RIMM at $73, SDLI at $219, AGIL at $43, TIBX at $48.

I will see you tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. Two stocks that are acting exceptionally strong right now but are a little expended are
OPWV and ONIS. I for one will not be losing track of these. Soon these two stocks could
be model 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

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 January 2001

Hello out there stock fans. A continuation today of Friday's close on the high of the day
with the best news being that the market once again came back from an early morning
sell off in the face of bad news once again. Today’s bad news was in fact old news just
waiting to happen and that was a call by Cisco Systems (CSCO) of lower than expected
growth going forward.

One of the tell tale signs of a potential comeback today was that volume was light during
the morning and no leading stock broke any support levels and they sure could have.
Also a number of stocks with poor forecasts of earnings going forward rallied well and a
number of stocks like MUSE broke out of a base that looks a lot like our new portfolio
stock MERQ.

Good news today also for us traders is that a whole new group of prior leaders are
coming up in price quickly. These are the Biotechs which were last to break down in the
big correction this past October and are the last to rebuild their charts in this interest rate-
losing rally. Some of the prior leaders that are coming back up are AFFX, HGSI, and
MYGN just to name a few. Soon these stocks will create strong chart patterns and I will
have them for you like in the past.

Here is a chart of a stock ready to move up and out. It’s a slow mover but a favorite of
many. Sun Microsystems (SUNW) is the stock and here is the chart. You can see it’s
close to breaking out of this somewhat tight formation.

1/3
Here are some picks for you active day traders on real time with my technical buy points.
CMVT at $115, CTLM $50, DIGL at $48, DPMI at $80, EMLX at $108, ITWO at $59,
SEBL $75, MANU $52, NUFO at $53, PRCM at $20, LARS at $7, and SONS at $40.

MODEL PORTFOLIO

Today I added Mercury Interactive to the model portfolio as it hit the buy point at $97 and
went up to a small resistance area at $100 before hitting the brakes. Volume did not hit
the 3 million mark which it should have but this stock chart looks a lot like MUSE did
before it ran $8 today. Stops are still at $94.

CheckPoint Software (CHKP) had a very good day today hitting new move highs at $165
and closing on its high of the day up $10 on good volume.

New model stocks are just a day or two away from begin added. Tomorrow I should have
then for you. They include EMLX, BRCD, QCOM, SEBL, OPWV and others.

I’ll see you tomorrow.

Daniel J. Zanger

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 30 January 2001

Hello out there stock fans. The NASDAQ market is on hold as it awaits the outcome of
the FMOC meeting that’s taking place today and tomorrow Wednesday. Will it be a .50
basis point cut in interest rates or will it be just .25% basis point cut? Meanwhile the DJIA
is not wasting anytime moving ahead as it gained over 179 points today and looks poised
to break out of a tight trading range that it's been locked in for 3 months.

Tight trading ranges are generally considered very good especially on the big indexes as
this signifies accumulation is taking place by the big institutions. Let’s take a look at the
DJIA and see how this looks.

On the other hand the NASDAQ could use a few more days to weeks of horizontal rest as
it's had a very good run up over the past few weeks. However as news sensitive and
driven as the NASDAQ has become over the past few years and as skittish as traders are
these days, I doubt this will happen. That is unless much larger scale accumulation by the
big institutions takes place of the likes we saw back in the summer 1999 just before the
big bubble blast off.

1/6
With the NASDAQ so close to its upper trading band line that you’ll see here tonight and
so close to major resistance at NASDSAQ 3028 I suspect that a large rally that could
ensue on a big rate cut could be short lived. A possible 'sell the news' scenario could be
just around the corner when the Feds cut rates tomorrow. Lets take a look at the
NASDAQ and its Trading Bands that are stopping points for short-term traders.

Before the bell today there were a couple of stocks that were moving very well on
powerful earnings. They were Cabot Microelectronics (CCMP) up $7 and breaking into
new 52-week highs but very extended now. Safenet (SFNT) leaping out of a crazy looking
base and up $10 and into new 52 week highs. SAFE is just breaking out and I would
consider buying some on a pull back by 2 to 4 points. Lets look at that crazy base.

2/6
After the bell today a stock I’ve had listed here a number of times New Focus Inc. (NUFO)
posted strong earnings numbers and raised estimates for future earnings. Look for this
stock to be up big tomorrow. Also after the bell Applied Materials (AMAT) pre-announced
poor results for this quarter and the stock is off from it closing high fractionally.

Before I get to the model portfolio section here are some picks for the active chart reader
and day trader to consider. FNSR at $39, MANU at $54, MMC at $109, VRTY at $32
MERQ at $101 CMVT at $119 and ITWO at $58.

MODEL PORTFOLIO

As you know MERQ hit the stop I had set at $94 on light volume late in the day after an
attempt to move out above the $100 area failed. Again this is due to light volume and
general market malaise. This stock like EMLX will be back soon is my feeling. Meanwhile
CheckPoint Software (CHKP) is super strong after it's stellar earnings report and this
stock hit new highs again today at $170 before selling off at the end of the day. Interest
rate jitters for all stocks are my thoughts on most of the choppy action we're seeing.

Here is a stock with a fair but not great chart in the tech sector. If it has good earnings,
which are due out soon, this stock might get up and run $10 to $18. You never know so
don’t lose track of it.

3/6
Before we get to Maya’s report below I would like to remind everyone that the street is
looking for and has probably already priced in a .50 basis point cut in rates tomorrow.
Anything less and I believe like many that the NASDAQ will have a hard down day.

WILL IRF RECTIFY OUR POWER SHORTAGES?

International Rectifier Corporation (IRF). Market Cap of $3.2 Bil, Shares Outstanding 62
Mil, Float 51 Mil, 52 wk high of $67. Last Q earnings $0.71, up 13% from previous Q, up
209% from year ago. Last Q revenue $268 Mil, up 7% from previous Q, up 57% from year
ago.

Remember those Internet traffic and content management companies taking off into the
stratosphere? The next big thing in the management arena, it seems, is the power
management. This concept allows computers, home and portable appliances, networking
and communication products to use less energy. It will allow the CD players and laptops
to have a longer battery life. It will reduce power consumption in washing machines and
save consumers $75 annually in energy costs. It will improve automotive fuel efficiency,
and finally, it will power huge routers and servers and help them meet tough energy
consumption standards.

THE POWER CHIPS

How can all of this be done? With the new generation of power chips from a company
called International Rectifier (IRF). Founded in 1947, it has a long-standing reputation and
high-quality products. The company is now taking its expertise to another level. Power
chips or power integrated circuits (ICs) are able to 'break electrical power into small

4/6
packets of electricity and then efficiently deliver exactly the type of power the end product
needs, exactly when it needs it', says David Tam, Vice President of Power Integrated
Circuits for IRF.

CHANGE IN FOCUS

International Rectifier manufactures a broad line of products in the area of power

conversion. The main line of products converts direct current (DC) to alternating current
(AC) and vice versa. But the growing share of its revenues is coming from the power
management products. This category now accounts for about 30 percent of its revenues,
and is expected to increase to more than 50 percent in the next couple of years. IRF’s
focus on information technology markets is also paying off. This division now constitutes
60 percent of its revenues.

NEW GENERATION PRODUCTS

Perhaps the most valuable relationship the company has is with Intel. IRF’s products are
already powering Pentium III microprocessors and much of AMD’s Athlon processors.
Another generation of power chips will go along with Pentium IVs and Itaniums. Also a
promising and symbolic relationship is one with Maytag. IRF is supplying its one of a kind
power chips for Maytag washing machines. These machines are highly efficient and much
of the industry is expected to follow Maytag’s lead to produce a new generation of home
appliances. The most encouraging market for IRF, however, is that of capital goods. Many
industrial motors now run only in 'on and off' modes. This inflexibility raises costs for the
operation of the motors. IRF is betting that, in the future, its power ICs will make motors
more versatile, reliable, and energy efficient. They will also introduce flexible control
industrial motors. As the company had stated, 'Breakthrough in electronic control could
turn electricity shortage into surplus.'

MARKET ENVIRONMENT AND PROJECTIONS

The company’s products represent a combination of the semiconductor sector and the
power supply industry. It is a market leader in power management solutions. International
Rectifier has the capacity to meet market demand and few of its competitors have that
luxury. Those companies that produce power management products include IXYS
Corporation (SYXI), Advanced Power Technology (APTI), and Fairchild Semiconductor
Corp (FCS).

The new generation of energy efficient appliances are expected to flood the market and
these devices will be stacked with IRF’s integrated circuits. The Department of Energy is
working hard to define new power efficiency standards for electricity-devouring home
appliances. Eventually, these developments will force appliance makers to incorporate
power management solutions in their products. The infantile industry of power
management solutions headed by International Rectifier holds many positive
developments and surprises ahead and we cannot miss that opportunity.

See you tomorrow.

5/6
Daniel J. Zanger

Chartpattern.com

P.S. Last night the TV show EXTRA had a small clip on me for about 4 minutes. We’ve
been overwhelmed with about 900 e-mail questions. As much as I would like to answer all
of them it’s just a physical impossibility. I will however get to as many as I can. Thanks for
understanding. Dan

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 January 2001

Hello out there stock fans. The markets got what they were looking for today which was a
.50 basis point cut in interest rates. Traders on the NASDAQ however took this as an
opportunity to sell the news with greater voracity than many had anticipated including me.
I must say I was very surprised to see so many leading stocks tumble so hard on such
good news.

A light sell off I thought would come as I wrote about last night but $6 to $18 loses today
was much more than I expected. Volume picked up slightly from the past couple of
sessions which is negative and suggests we could see lower prices over the next few
days. Also the NASDAQ closed again at the low of the day which always suggests more
downside action is probably in the cards tomorrow. If anyone thought the Wild West was
wild, I think the NASDAQ has got that topped.

Lets take a look at the NASDAQ once again. That rising ascending triangle still exists and
can be very menacing until it’s fully resolved.

After the bell today a number of technology stocks reported better than expected earnings
numbers and two of them are up nicely in after hours trading. They are Digital Lightwave
(DIGL) which reported earnings at .40 up about 300% from a year ago. This stock leaped

1/5
in after hours trading from its close at $42 to a high as $51 before settling down to $49.
Celestica Inc (CLS) reported better than expected earnings and is up about $6 in after
hours.

With so many stocks selling off today and many of them breaking small support areas
combined with the NASDAQ closing on its low of the day the propensity for stocks to
move lower is now greater than for stocks to move higher. Therefore I have a number of
stocks to consider shorting which is strictly for the seasoned day trader on real time. Here
are the charts.

2/5
3/5
The bigger question which has yet to be answered, is when are stocks going to break out
and make long advances. It's been a very long time since this has happened and until the
market gets in a mode to do so trades are going to have to be very short lived.

I know we all yearn for the days of 1998 and 1999 when a stock like Qualcom (QCOM)
would break out of a tight base at $230 and run up $570 to $800 points in just 8 weeks
before it's 4 for 1 split. Or a CMGI that leaped 200 points in three days on its stock split or
Amazon.com (AMZN) that ran from $137 to $600 pre split in just 6 weeks. By the way you
can see all of the charts of these stocks with their chart pattern just as I had them before
their big runs in the archives section in the member login area.

No telling when we will get even a reasonable move but at some point it will come, even
though the likes of the moves mentioned here we will probably not be seen again in our
lifetime. Big moves yes, but not 500 points in one stock in 8 weeks. More like 50 to 75
points in 12 weeks like the days before the Internet bubble. They will come but the market
is just not ready as yet.

MODEL PORTFOLIO

Our lone model stock CHKP came down today after being above the upper trading bands
yesterday. Volume was average however. This stock might need a little more time before
it could turn up. I will however raise it's stop to $140, which is just under the 28 moving
average line.

4/5
Due to very heavy requests for a seminar to teach all that I can about charting and the
markets, I have scheduled an all day seminar in the LA area at the LA Sheraton Gateway
Hotel, at the LA airport. The seminar will be held on May 12th which is a Saturday. The
show will start at 10 am and will run till 5pm. We will provide a continental breakfast and a
sit down lunch.

If you are truly serious about charting the markets this seminar is an absolute must. I will
have a banner on the web site with a description of the agenda in a few days.

I will be back on Sunday as usual and Maya will have another report on a fast growth
technology company tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. Only stocks that I have done a chart on are in the archives. Some of interest from
last year and the year before: SDLI, EMLX, YHOO, CMVT, BRCD, JNPR, CHKP, JDSU,
ARBA, CIEN, VRSN, AMCC, CMRC, HGSI, AFFX, EXDS, GNET, and CNET just to
mention a few.

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 4 February 2001

Hello out there stock fans. Seems the market was not too excited about Friday's
unemployment and jobs creation report which many deemed unfavorable to another
interest rate cut before the next Fed policy meeting in March. Without another interest
rate cut and with most of the earnings out of the way there is little catalyst to spark and
sustain a rally going forward.

As a result of the employment news, the NASDAQ accelerated its breakdown of that
menacing rising ascending triangle that I showed you late last week (See archives) with a
122 point plunge and another close on it's low of the day on Friday. Further more
numerous leading technology stocks that were building some decent chart patterns and
starting to look positive, have broken down and through support by late Friday. I’ve
always found that when charts can’t hold their pattern formations then the market has
more downside behavior in it.

Tonight I have a number charts that are painting a negative picture on many fronts so let’s
get with them.

First up are the indexes and most of them are now suggesting lower lows to come. The
first is a daily chart of the NASDAQ and the second one is a weekly chart of the
NASDAQ, which is a daily chart compressed into a weekly format giving us a big picture.

1/9
2/9
Here is that Biotech index chart again and this time you’ll see that this index trend line re-
test failed. This suggests that the Biotechs are headed lower.

3/9
Now here are three individual stocks that appear to be headed lower and why.

4/9
Here is a former model stock that needs to hold it's trend lines or lower it goes for now. It
like most of the stocks I show are subject to daily and weekly fads, I.E. if this week the
market goes down then so do these stocks. If the next week the market is up then so
these stocks go up. This past week and possibly next week the fad is down.

5/9
Another reason that the markets may be so queasy right now is that the futures markets
are forecasting another 100 basis point cut in interest rates by June. Any delay in rates
being cut further only adds to uncertainty about future earnings, which will keep stock
prices low and volatility high.

Here’s a few other charts of some stocks that might want to lower in price with a negative
market.

6/9
7/9
MODEL PORTFOLIO

Our last model portfolio stock Check Point Software (CHKP) hit my stop at $142 and got
checked out of the model portfolio on Friday. This means that there are no stocks in the
model portfolio. When the model portfolio has been 100% in cash like it is now this
usually has meant a very tough market is in front of us for sometime to come.

As soon as stocks become fashionable again in a few weeks or so, then my 'Fashion
conscience' stocks like CHKP, EMLX, MERQ and others will be back.

See you on Monday.

Daniel J. Zanger

Chartpattern.com

P.S.- The NASDAQ today has the mentality of an elevator. If it's not going up then it must
be going down.

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

8/9
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 February 2001

Hello out there stock fans. Early morning selling on the NASDAQ today dropped this
index down 63 points by mid day before a mild late day rally lifted many stocks up to
close at or near their highs for the day. The NASDAQ trimmed it's losses to close the day
down just 17 points. Meanwhile the DJIA posted gains of 101 points and it looks closer to
breaking out of it's tight trading range than it has been for 3 months. Let's look at the DJIA
again.

Tomorrow bell weather stock Cisco Systems (CSCO) reports what is expected by many to
be less than stellar earnings. The stock has come under pressure as a result over the
past few weeks and the release of earnings coupled with a forecast by CEO John
Chambers should move the markets one way or another on Wednesday. If stocks rally
fair into the close tomorrow then we might be in for a 'rally the bad news' or a relief rally
scenario on Wednesday.

This relief rally may happen anyway as a number of my short-term oscillators are giving
short-term oversold readings which suggest a rally should materialize soon. Soon
meaning as soon as tomorrow to three days. Stocks that would rally up best in the event
of a rally would be OPWV, CMVT, CHKP, EMLX, MERQ SEBL, NEWP, RIMM, BRCM,
and big mover SDLI.

1/3
Tonight I have a chart of the QQQ’s, that is a tracking index traded on the AMEX. Today’s
action shows this index doing positive things by holding its recent break out of the long
descending trend line. Should this line hold over the next few days then we might say for
sure that the lows have been put in on the NASDAQ. I would love to see some more
horizontal work or time put in on the NASDAQ.

There are no charts that have set up well enough to post here tonight, but there are a few
stocks with buy points for those of you with chart programs to look at for day trading.
SEBL at $69, SDLI at $187, OPWV at $69, JNPR at $108, CCMP at $84. CCMP has
gone parabolic and you need to be very careful on this one. Lets take at look at one of the
strongest stocks in the market today.

2/3
MODEL PORTFOLIO

I made a typo error on the stop point for CHKP yesterday as it should have been $140,
which it hit today. The $140 was in last Wednesday’s letter. I will make the adjustment in
the site tomorrow. Do not be surprised to see any one of the prior portfolio stocks back as
a model stock when the market gets stronger in the future.

See you folks 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 6 February 2001

Hello out there stock fans. A fair day today as the market rallied up some 50 points on
light volume before sellers fearing the worst from Cisco Systems (CSCO) earnings after
the bell starting selling strength. This brought the NASDAQ back down where it closed the
day up 21 points. The DJIA did much of the same except it closed in negative territory
down just 8 points.

After the bell today CSCO did report earnings and they were weaker than forecasted as
CSCO missed a projected 19 cent per share number by 1 penny and revenues were
forecasted to be in the low 7 billion range however they were in the high 6’s. In after hours
trading CSCO is down a few bucks on good volume.

The real story could be that many stocks in peer groups are down as much as $3 to $7 in
after hours on this news. Stocks like SDLI, BRCM, AMCC JNPR, and PMCS. This
suggests a very weak opening tomorrow and lets hope things don’t get out of hand. Best
case scenario if we gap down at the open, would be a higher close than where we
opened the day. Somehow I doubt this will happen even though the market is short term
oversold.

When the market turns positive again this stock might get up and go from this nice flag
pattern. Earnings on this tech stock are up 475% to .36 cents while revenues are up 97%
to almost $9 million.

1/4
Until more stocks create good chart patterns there are no other charts to show right now.
Many stocks that I listed here to short in the past few days are still heading lower like
BRCM, AMCC, and RIMM and a few others. In a day or two more stocks will set up with
patterns in which to trade from.

Tonight Maya has a report on a stock that has been here many times.

WHERE WILL CHECKPOINT FIND ACCELERATION?

Checkpoint Software (CHKP). Market Cap of $22.6 Bil, Shares Outstanding 155 Mil, Float
110 Mil, 52 wk high of $177. Last Q earnings $0.46, up 31% from previous Q, up 171%
from year ago. Last Q revenues $140.4 Mil, up 21% from previous Q, up 107% from year
ago.

Checkpoint’s management knows in what direction to steer. The company remains

confident of its short-term outlook and many investors share that opinion considering the
company to be a good investment vehicle. Just take a look at the stock’s performance for
the past year or so!

Let us first remember that Checkpoint’s majority of sales come from products such as
security firewalls and Virtual Private Networks (VPNs). For more in depth look at the
company please see our October 31st report in the member login section of the site. The
market for VPN solutions is expected to grow from $425 million in 1999 to a conservative
estimate of $2.2 billion in 2003. In both markets (firewall and VPN) Checkpoint has
around 50 percent dominance. What separates the company from competition is that it
sells both of the products in one package.

2/4
So what is Checkpoint planning to do to stay on top of the information security world?

CATALYST 1: BOOSTING PRODUCTS’ PERFORMANCE

As more and more enterprises and service providers are able to get faster bandwidth
connections, they are faced with new limitations when they want to work in a secure
mode. The reason for these limitations lies in the fact that the performance of today’s
VPNs is much poorer than the speed of the new networks. In other words, a company
that wants to operate in a secure mode (in a VPN) cannot take full advantage of the fast
connection it has.

Alliance between Checkpoint and Broadcom (BRCM) has produced a solution that will
improve VPN performance by about 10 times. Based on Checkpoint’s software,
Broadcom has recently designed an encryption chip, which takes the load off the central
processor and results in increased performance. This new improvement should result in a
huge revenue stream for Checkpoint.

CATALYST 2: EXPANSION INTO NEW MARKETS

Another attractive strategy that Checkpoint is planning is to increase the size of its
potential market by moving into a smaller and medium-sized business market. The
company has made alliances with makers of relatively low-cost network appliances such
as Nokia and Intrusion.com. Such appliances bundled together with Checkpoint’s
software will allow small business to be taking advantage of VPN use just like the large
enterprises. This technology will allow company employees secure remote access to their
company database from a laptop computer or digital personal assistant. VPN market for
smaller and medium size business is expected to grow approximately two times faster
than the high-end enterprise market.

According to a recent Merrill Lynch survey, spending on Virtual Private Networks is

ranked as a number two priority for corporations’ IT budgets for 2001. If you understand
that hardly anything in the Internet space today does not need security, then you
understand the perspectives for Checkpoint.

Checkpoint’s shares will be splitting 3 for 2 on February 12 and is one of the stocks very
close to its 52-week highs. A break into new highs on expanding volume would be the
next best buy point.

See you tomorrow.

Daniel J. Zanger

Maya Sobolev

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 7 February 2001

Hello out there stock fans. Negative earnings and forecasts from bell weather Cisco
Systems (CSCO) had the bad effect today that I mentioned in last night’s letter. Stocks
gapped down at the open and many technology stocks in particular never looked back. It
wasn’t until late in the day that many stocks pulled themselves up somewhat while many
stocks stayed near their lows of the day.

CSCO cited a huge backlog, which will take months to work off, and this will depress
many industries that supply this company. It also strongly suggests that most all
technology stocks are in for a very long road to recovery with at least 2 quarters of
decelerating earnings coming up. Hardly the stuff that’s needed to rally technology stocks.

This news and subsequent action by technology stocks today will probably keep the
NASDAQ locked in a horizontal trading range for months to come. A break out from this
trading range won’t occur until the street can see that a meaningful upturn in the economy
is in the works and earnings expansion in technology stocks is going to occur again. Until
then it’s a trader's market that will be suited for the quick and nimble.

So for those of you that are quick and nimble here are many charts to look at and ponder
as to what to do when these stocks make their moves. I have the buy points on most and
the stops that must be adhered to. The market is deeply oversold now and we could
bounce up at anytime. This would be a trading bounce as we call it and not for buying and
holding stocks. Maybe you buy one day and sell the next or you sell at the end of the
same day. It’s up to you.

1/6
2/6
3/6
4/6
Of the ones listed above the title company FAF is not a technology company and may be
the safest of these. QCOM acts fair these days and earnings are picking up again. DIGL
has the best earnings and revenue growth for the momentum player. LMNE is in the fiber
optic sector, which has been weak of late, but this one looks interesting for those who are
lower priced players.

MODEL PORTFOLIO

The model portfolio remains in 100% cash.

Tomorrow Maya will have a report on one of the better acting stocks today. Openwave
(OPWV) has been red hot since it released smashing earnings two weeks ago. The stock
needs to rest since it was just at $20 before it rocketed on the earnings news to over $74
in just a week or so. I will have a chart of it 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

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 February 2001

Hello out there stock fans. The NASDAQ is still reeling from a bad earnings report from
bell weather Cisco Systems (CSCO) that came out this past week. The NASDAQ,
regardless of being oversold, is sliding back to where it was at the beginning of the year
and looks likely to test prior lows at or near the 2250 area.

Before I get on to some charts and stock picks let me first say that the NASDAQ is
evolving everyday and volatility on the NASDAQ remains extreme. Until this extreme
behavior of quick ups and downs subsides, I think it best that anyone that buys a stock be
ready to sell it quickly. Anyone not prepared to do this will find the going extremely tough.

Right now I would like to go over some trading tips that will greatly improve your ability to
understand whether or not you should either buy stock or continue to hold a stock that is
trying to break out. Let's say you took a flyer and bought QCOM the other day as it tried
to break out at $89. There were a number of things present at the time that said maybe
this stock would not work out. The first thing that stood out in my mind was the volume
early on in this stock was fair but still slightly below par. This to me was my first warning.
Also the market was generally weak and powerful stocks in the market were very weak
early on as well.

One must know that most stocks go the way the market is going. So if the market is
heading south that day then entering stocks will be a risky proposition and owning any
stock will be risky to say the least. Therefore you must know a basket of leading stocks in
the market and check on them to see what they are doing continually throughout the day.
If you are on the road or at work I would suggest checking them every half hour if you
can. If they are down then maybe you should hold off purchasing any new stocks.

Once you’ve checked on market leaders and they are performing well, then let’s say a
stock that you want to purchase has crossed a trend line and hit a buy point. Let me first
say there are thousands of eyes on this stock and it's buy point is seen by many mutual
funds, day traders and brokerage houses. They see what you see and if this stock is
going to perform then these individuals will be stepping in en masse with great vigor and
institutional buying power. The stock should accelerate beyond that buy point with great
velocity and within just 5 to 7 minutes time be far past that buy point by two to four
dollars.

Therefore you must know that if your stock is not far beyond your buy point within 20
minutes then you can be assured that it will fail. This is because no one really wants to
step in and push this stock up for one reason or another. So now knowing this, one can
safely assume that should a stock hit a buy point and not explode through it, that one
should trade out of it within 20 minutes or less. You could have been out of QCOM at $88

1/3
or so and per a stop in the Golden Rules you would have been out at $87 with a 2-point
stop below a trend line. Remember that line, your line of defense. The minute it goes
below that line you're out. No hemming and hawing, no beef, no questions asked. It’s
automatic and mechanical- you're out!

These few paragraphs my friends cost me hundreds of thousands dollars to learn and I
hope you will learn from them and use them well in the future. Now on to some day
trading picks and charts. Again learn to read the market's health everyday.

Here are a few charts. One that could move up when the market is positive, and one to
move down when and if market is negative.

2/3
More time is needed to set up more stocks for day trader selections. Hopefully tomorrow
I’ll have some here.

MODEL PORTFOLIO

The model remains in 100% cash 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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 12 February 2001

Hello out there stock fans. Another rough day today on the NASDAQ as a former model
stock Emulex (EMLX) forecasted slower than expected growth in the next few quarters.
This is just two weeks after good earnings and a rosy forecast of things to come. This
caused the stock to gap down some 30 points at the open and head even lower for the
better part of the day. It also brought down most other stocks in the Storage group
including Brocade Comm (BRCD) down $12, E M C Mass (EMC) down $3, and a stock I
had listed to short last week Qlogic (QLGC) down $15.

Lower lows and lower highs are the kind of thing that can foretell potential trouble ahead
and it's one of the things one must watch out for at all times. All of these stocks listed
above that caved in today had lower highs on them. In a strong market these lower highs
aren’t that bad and many times foretell just a pause in the upward price action. While in a
bear market like this, it can be far more potent and can forecast potential harm to one's
portfolio. It's just one of the keys to understanding the rules of ownership of a stock.

Let's take a look at EMLX which by the way had a very powerful chart pattern after it
broke out a few weeks ago, but then quickly failed with a hard down day. I even showed
this stock with it's chart last week with two horizontal lines that should not have been
broken. The next day it promptly broke those lines and now we know why, bad news was
on the horizon. Lets see that chart once again.

1/3
By the way all of the other stocks in this once strong group have broken support lines of
some sort in the past two weeks prior to today and you would’ve or could’ve been out
before today.

Money did flow today into the Biotechs as Celera Genomic (CRA) announced today that
the human genome may not be as complex as first thought. CRA did announce last week
that they would make this announcement this week. Therefore one could surmise that
today’s rally in the biotechs was just for the sake of parking cash in a safe haven play of
groups. Since there are no earnings for the most part on these stocks, you’ll probably find
little earnings disappointment like EMLX here.

Again barring anymore bad news about future earnings like we got today, the market with
my indicators deeply oversold after two weeks of heavy downside action, should be ready
for a bounce.

This may happen tomorrow as Alan Greenspan speaks before Congress in his semi
annual Humphrey-Hawkins testimony. Should a bounce ensue I can only think it will be a
bounce to run the shorts temporarily and then to short stocks at a higher level. This would
be especially true on the higher P/E stocks like BRCM, BRCD, and other former high
flyers.

Here are some stocks that look like they may bounce if a bounce does in fact materialize.
The buy points are also the stop loss points and the stocks must accelerate from the buy
points quickly or you're out fast. These are for the active day trader on real time only.

AETH at $33, AVNX at $40, BMCS at $33, BRCM at $83, CHKP at $127, ESRX at $100,
FMKT at $25, GS at $100, IMCL at $41, NTAP at $40, USM at $67.

Here is a chart of a stock that has done very well over the past 12 months. It does testing
services to the medical profession. Laboratory Corp. of America (LH) is the name, and
earnings are very big, up 194% to .94 last quarter, but the revenue growth is a little weak,
up just 14% to $488 million last quarter. The chart is not too bad and the stock just might
break out and run.

2/3
MODEL PORTFOLIO

The model portfolio is still in cash.

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 February 2001

Hello out there stock fans. Mr. Greenspan spoke today and the market was not
impressed. Like the ground hog Punxsutawney Phil, the market decided to go back into
hiding after his speech. And it probably saw its shadow too by the way the market is
responding.

Most tech stocks hopped up this morning and tried to rally but with little enthusiasm. As
soon as Mr. Greenspans’s speech ended, the market rolled over and many once powerful
tech stocks including the Biotechs went back into bear market behavior. Many stocks in
the Biotech sector broke long standing support today like MLNM and HGSI. These two
stocks were down $4 and $7 respectively.

Other former high flyers in the storage group like Brocade Comm (BRCD) caved on triple
daily average volume and gave back $10. Fiber optic networking stocks Juniper Networks
(JNPR) and Ciena (CIEN) had nice gains early on only to go underwater by 3 or 4 points
by the end of the day.

Since the NASDAQ has closed on the low of the day and we have seen how many times
the NASDAQ has follow through in this direction the next day, let’s hit the charts and see
if we can pick some chicken off the bone of these fallen angels.

1/5
Here is a chart of a stock I had to short a few days ago along with many others I had like
BRCM at $99, RIMM at $66 and MUSE at $80. All of these stocks are substantially lower
today

2/5
Here are some very promising picks for the active day trader to look at for shorting with
my technical short points. CPST at 29, GENZ at $81, IMCL at $35, MERQ at $66, NTIQ
at $65, OPWV at $57, PDLI at $62, RIMM at $52, CMRC at $22, AMAT at $41.

Tonight Maya has a report on Capstone Turbine Corp. (CPST). As you can see I have it
listed in the short department for active day traders. This means that this is not a stock to
purchase for long positions right now.

CAPSTONE IN PROGRESS

Capstone Turbine Corp (CPST). Market Cap of $2.2 Bil, Shares Outstanding 75.7 Mil,
Float 10 Mil, 52 wk high of $98.50. Last Q earnings -$0.08. Last Q revenue $7.1 Mil, up
15% from previous Q, up 31%.

Capstone recently reported its financial results, and we thought it was important to update
you on the conditions of this promising company. The microturbine maker beat the street
by 4 cents. For the full year 2000 they had sales of $23.2 million compared to $6.7 million
in 1999 experiencing 15 percent sequential growth in sales in the latest quarter. These
quarterly results could have been considerably better; however, two problems got in the
way. First, the company was not in operation for two weeks as they were moving to the
new larger facility. Second, Capstone was burdened by a shortage in supply of electronic
components. Due to that reason the company’s new 60 kW microturbines could not be
produced in volume. Capstone’s CEO said they are working on fixing the problem and

3/5
expecting the situation to be resolved by mid-spring. The sales of the 60 kW products are
especially critical; these products bring in higher gross margins to the financial
statements.

2001 LOOKS PROMISING

This company’s management is expecting to ship between 2,000 and 4,000 units, and
some experts are projecting a narrower range of 2,400 to 3,000 units, which would mean
the revenue estimates stand at $75 to $100 million for 2001. Translation: the company
would at least triple or quadruple its annual sales in addition to improving its margins with
the help of the 60 kW product. Currently the backlog for 2001 stands at around 800 units
for the 30 kW product and a couple of dozens units of the 60 kW, and the company hinted
that the 60 kW would be increasing. And there are orders for 2002 already standing at
around 800 to 900 units.

The company is also working on higher kilowatt products. Capstone joined together with
the Department of Energy to develop and jointly finance 125 kW and 180 kW units.
Currently all of company’s products work on a great variety of gases and liquids and in
the near future the units will be able to run on biomass waste gases. To better understand
the technology behind Capstone please refers to our January 18 report, which can be
found in the member login area of the website.

BIG HELP FROM DEREGULATION

The management pointed out that Japan and Europe are among the company’s key
target markets. The company announced that as a result of deregulation, their clients
would now be able to significantly decrease installation costs of microturbines. Similar
deregulation took place here in the states of Texas and New York while California is
expected to lighten up on their rules shortly. Friendlier environments should improve
Capstone’s product penetration in these regions.

Capstone has also created the Capstone California venture to target the California market
specifically. In the month of January the company had received 10 times more inquiries
about their products than usual in light of the California power crisis.

DEVELOPMENTS AHEAD

The company’s stock trades at lofty valuations, and not to disappoint investors, this
innovator will have to not just keep meeting but beating the goals it sets. Therefore,
Capstone will need to show around 50 percent sequential growth in sales all year round.
It is not just critical for Capstone to keep growing sales but improve its margins also. This
is why investors will be keeping a close eye on how the sales of the higher margin 60 kW
turbines will be going. Another factor that will be a success for Capstone is a new product,
recuperator cores, which should be out in the third quarter.

4/5
Ahead of the stock there are lock-up expirations on the 15th and 25th of this month,
which may be the explanation for the stock’s weak action in the last few days. Monitor
how the lock-ups will go to see the attitude of big institutions towards the stock.

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 14 February 2001

Hello out there stock fans. A mild down opening today with many stocks at or near
support areas and many bouncing off double or triple bottoms after being deeply oversold
for a week. Could today be the turn around from deeply oversold levels that I’ve been
talking about for the past week?

I hope it is and many of these turn around stocks had very heavy volume. Some stocks
like Mercury Interactive (MERQ) had volume that was 50% above normal and this stock
posted a $10 gain. This stock bounced in an area that can be considered a triple bottom.
Many stocks are in the triple bottom area and a number of the indices are too like the
QQQ’s. Meanwhile the Biotechs are still headed lower and breaking support.

Let's get to some charts and see some of these potential turn around candidates.
Hopefully none of these will report that next quarters earnings will be less than expected
like Emulex (EMLX) did the other day which caused EMLX to gap down some $40. This is
a dilemma all holders of stock overnight will face in a decelerating GDP environment.

1/3
Here are some potential longs for the active day trader. AMD at $25, AVNX at $41, BRCM
at $84 as it breaks that small little descending trend line that you saw in last nights chart.
CHKP at $91, CIEN at $78, ELNT at $41.

2/3
Well the great bear market is just 3 weeks away from its one year anniversary. History
has shown that big bear markets just don’t vanish in a year or so and this one is not going
to be an exception. Bear markets as bad as this one usually take anywhere from 500 to
800 total days to go away. This means we have as little as 170 days to as long as 450
before stocks start acting bullish once again. Until then it's quick and fast trades for those
that can. Otherwise just sit back and learn as best you can.

Monday is a holiday here in the U.S. so I will take that day off. 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 20 February 2001

Hello out there stock fans. A crushing day on Friday of last week after Nortel Networks
(NT) pre announced poor earnings going forward. This was just one day after there was
euphoria in the tech sector due to Ciena (CIEN) announcing better than expected
earnings and raising estimates in coming quarters on Thursday.

Like I said in last Wednesday's letter about owning stocks in long positions overnight
going forward. Hopefully none of these stocks will report that next quarters earnings will
be less than expected like Emulex (EMLX) did the other day which caused EMLX to gap
down some $40 and brought down that entire sector. This is a dilemma all holders of
stock overnight will face in a decelerating GDP environment. There are no owning of
stocks overnight in long positions until the GDP begins to expand is my opinion.

The hang over in the tech sector from Friday’s action was no different today as the CEO
of CSCO said over the weekend that the U.S. is already in recession. We also had Intel
announce a cut back in many areas so that it could hopefully meet this quarter's numbers.
INTC’s action will do nothing more than create a domino effect in its sector, as will NT’s
lay off of 10,000 workers and CSCO’s excess inventory.

Tomorrow the CPI number comes out and hopefully it will be far less than the PPI was
last week. With the NASDAQ so deeply oversold, a very low CPI could help this index
have a decent rally to relieve this oversold condition. However it will do little to help out
the tech sector rebuild the charts short term.

Knowing that the NASDAQ is deeply oversold I do have some potential shorts that could
work out tomorrow if this CPI number is perceived by the street to be negative. On the
other hand a short trap could ensue with early downside pressure relieved by an up day
by the end of the day. Traders beware.

These picks are for the active day trader or very short-term swing trader. Please read the
overall market before considering any of these.

1/5
2/5
3/5
Here are some picks to go short on and remember the NASDAQ has already dropped
about 9% in just 2 days. As of tonight these charts are suggesting lower lows on these
stocks, which is why they are being listed. They do not take into consideration overbought

4/5
or oversold conditions. CCMP at $90 or above, VRTS at $71, NVDA at $53, RBAK at $28,
MU at $38, ISSX at $70, FCEL at $53, EPNY at $23, JNPR at $74, CNET at $14, NTIQ at
$64.

MODEL PORTFOLIO

The model portfolio remains in cash.

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.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 February 2001

Hello out there stock fans. Poor CPI numbers today induced a gap down opening on the
NASDAQ, which brought in short covering and dip buyers to lift prices up till midday. Late
in the day however sellers dominated and prices rolled over till just before the close when
short covering bid up many stocks before a host of economic reports are released
tomorrow.

The DJIA was the big loser today as it dropped 204 points and is just now breaking a
number of support trend lines. This index is a little late to the party where bears have
been feasting on over zealous bullish advisors. Most of the major indexes like the OEX,
SP500, NDX and OTC Composite have been cascading down for some time. Seems it's
time for this big cap index to join in. Lets look at this index to see what’s going on.

Today the NASDAQ came to within 2 points of going below a prior intraday low at 2251.
Can this index hold this level and give us a double bottom? Here is the chart.

1/4
No telling what behavior the NASDAQ will take on when and if it gets below this support
level. Some folks are expecting a plunge, which they think, will shake every last bull into a
bear. This in turn will be the beginning of the new bull market they think. I personally think
this bear will be with us for quite some time and plunge or no plunge, this market will
need lots of time to rebuild. Remember this bear is close to being 1 year old and most
severe bears last 2 years.

Of course to back up this thought is a break down in the brokerages and the financials
over the past few days. All leading brokerages and most of the bigger financials are
lowering in price rapidly. If the markets were healthier then these indexes and underlying
issues would be acting much better. Instead they are breaking chart patterns in a hurry.
See LEH, GS, C, JPM and others.

After the bell today Brocade (BRCD) announced earnings that beat the street but it said
that next quarter's earnings would be flat. The stock has already taken a severe beating
lately dropping from a recent high of $108 to today’s close of $44. However in after hours
trading it took another discount down to $36. Look for all of the storage stocks to get
bruised tomorrow as well.

With today’s action there are no stock selections that I can find that have any set ups to
list for either day or swing trades. No charts have set up either. In my next letter on
Sunday there should be a number of them.

Today Maya has a report on Safenet (SFNT). This stock so far is holding up rather well
but I would not be an owner of any stock in long position overnight in this market.

2/4
SAFER BET - SAFENET

Safenet, Inc (SFNT). Market Cap of $400 Mil, Shares Outstanding 6.9 Mil, Float 5.3 Mil,
52 wk high of $64. Last Q earnings $0.36, up 29% from previous Q. Last Q revenues $8.9
Mil, up 17% from previous Q, up 98% from year ago.

In the past weeks we have written a lot about the Internet security sector and its
importance in the IT economy today. Although many companies’ budgets are expected to
drop in their growth or even shrink from the previous year, IT managers still view
spending on security and especially on Virtual Private Networks as their top strategic
priority. This notion is reflected in the behavior of the leading security provider, Checkpoint
Software, whose stock has been holding up relatively well despite the unfavorable market
conditions.

Last week Lehman Brothers initiated coverage of several Internet security players stating
their belief that this sector will be among the best performers in technology in the next
one to two years. In addition, Lehman Brothers mentioned that they expect the Internet
security software market to reach $13.3 billion by 2004. A significant opportunity
considering there are not that many players in the sector.

COMPANY, PRODUCTS, COMPETITORS

Today we want to turn your attention to one of those few players in the Internet security
arena not mentioned among the key players in the Lehman report. Some of you may not
be familiar with Safenet Inc (SFNT), one reason for that may be that this company,
although established in the early 1980s, used to be called Information Resource
Engineering and only changed its name to Safenet this past November. Another reason
for its incognito status may be that this is a small cap company and smaller companies do
not get to be on the spotlight as much as their bigger counterparts.

Safenet develops network security software and silicon products that use encryption
technology to enable secure electronic commerce transactions and communications over
the Internet. In a way, this company can be seen as Checkpoint’s Mini-Me. Remember
Austin Powers’s movie? There are many things Checkpoint and Safenet have in common:
they make similar VPN products and are both currently expanding into the small and
medium size business market. The only big difference between Safenet and Checkpoint
is the former also makes the encryption accelerator chip similar to the chip that Broadcom
(BRCM) develops to use in combination with Checkpoint’s software solutions. Please
refer to our latest Checkpoint report as of February 6 to read more about that.

NOT SO MINI

Although a smaller company, Safenet has some bigger-scale customers. On its list there
are major US banks, the FBI, US Treasury and Fortune 1000 companies that are relying
on Safenet’s solutions. And the company also managed to establish strategic
relationships with the leading builders of the Internet. Cisco, Intel and Nokia are among

3/4
the monsters that integrate Safenet’s products into their own. No doubt it is those
necessary partnerships that Safenet is counting on in the battle against the Checkpoint
powerhouse.

Safenet’s valuations seem to be rather attractive in comparison to Checkpoint’s.

Checkpoint, of course, gets richly valued because investors see it as a more reliable
investment with a proven technology that is becoming a de facto standard. However, the
market seems to be so large that there has to be room for more players, and Safenet is a
very credible contender. After all, not every American company will want to buy its
security solutions from overseas.

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 February 2001

Hello out there stock fans. Heavy selling of technology stocks continued on Thursday and
early Friday until mid day on Friday when the VIX soared to 35. This is a level that implies
extreme fear in the market. When this index hit 35 buying quickly went into high beta
stocks such as the heavily oversold technology stocks. Stocks that were down as much
as $3 to $7 during the day quickly reversed course and went positive on my screen. By
the end of the day numerous stocks were up $3 to $8. These stocks now sport charts that
suggest more upside is set to come this week. However owning stocks in long position
overnight is still not something I would consider.

Lets take a look at the VIX, which is a measuring indicator of put to call ratio. Generally
the higher the indicator is to 35 or 40, the more fear exists in the market. As a result,
options players believe the market is heading lower and purchase more puts options. The
lower the indicator is to 22 or less the more option players are convinced the market is
going up. Many traders and institutions use this as a contrarian indicator, buying when
this indicator is high and selling when this indicator is low.

One of the better indexes to look at today is the QQQ’s. The QQQ’s are a tracking index
of leading bigger cap NASDAQ stocks. This index has had very high volume over the
past two days and closed near the highs of those days. This suggests that big institutional

1/3
money has been out buying fear and weakness. Also, at these low levels I suspect there
has been some short covering as well. Here is the chart of this popular tradable index.

There are still very few stocks to look at with meaningful charts to highlight in picture
format as of today. However, there are numerous stocks that with our very oversold
conditions look like they might see some upside action for a few days. So for the active
short-term trader on real time here are some potential movers with my technical buy
points. NVLS at $46, ONIS as $41, JNPR at $76, BRCM at $70, NEWP at $58, PMCS at
$51, RBAK at $35, ELNT at $40, DIGL at $32, AVNX at $28, CIEN at $76, GENZ at $84,
KLAC at $44, MERQ at $71, MUSE at $51.

I will say that a number of the Semiconductor equipment stocks are looking pretty good
as of today. Two of these stocks are listed above like NVLS and KLAC. Other stocks in
this arena would be DPMI, AMAT and LRCX. I will have their charts here soon but
understand these stocks are holding up because companies such as INTC and IBM and
others have said they plan on spending billions this year alone to upgrade their
equipment. However if the economy continues to deteriorate, spending plans could be
reduced and these stocks could take a sharp hit.

This Friday I will be speaking in Salt Lake City at the Investors Revenge Conference. This
conference will have numerous well-known speakers in the option world such as Dr. Jon
Najarian and others. If anyone has an interest please click the Investors Revenge banner
on the login page.

2/3
By the way, speaking of options, a good friend of mine Fari Hamzei has a very good site
for the active option trader. He tells me that on Friday he has never seen so many total
contracts traded on the 200 stocks that he tracks. A record day for options as he put it.
Maybe someone knows something about interest rates coming up shortly? His site
updates traded contracts in real time and by dollar weights. Anyone interested can click
this link for this total that I’m referring to.

Http://www.HamzeiAnalytics.com/OC_vol.htm

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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 February 2001

Hello out there stock fans. A rocky start with many stocks gapping up 1 or 2 points at the
open on good Instinet volume only to see these gains erased within the first 20 minutes.
All indexes were at a virtual stand still until a former Fed official said that chances of a
Fed easing this week now stand at 80%. The DJIA moved up sharply after these
comments were made with the DJIA tacking on a gain of over 200 points. NASDAQ
stocks rallied slightly with much of today’s upside action centered in the Biotech sector.

As more and more companies in the Fiber optic, Storage and electronic sector report
more and more slowing, it could be the Biotech sector that comes back to life. The past
two days have been very productive days for Biotech stocks with HGSI having two really
good days. Tonight I have a picture of the Biotech index (BTK) and a leading genomic
stock Celera (CRA).

1/4
Here are two non-tech stocks that are in strong groups with excellent chart patterns.
These stocks are probably not fast movers but may reward in time.

2/4
Here are two tech stocks with Business Objects (BOBJ) having the best earnings of the
two.

3/4
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.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 February 2001

Hello out there stock fans. Before the bell today two companies reported bad news, which
sent the market down from the open. Nike Inc. reported problems with their i2
Technologies (ITWO) software that caused Nike to report lower than expected earnings
this quarter. Also J D S Uniphase (JDSU) announced that it would lay off 3000 workers
from two plants. All technology stocks headed south at the open on a small gap down as
a result of these two news items.

By mid day word came out from a technology conference held by Bear Stearns that
Juniper Networks (JNPR) can’t see the future clearly enough to forecast earnings in
upcoming quarters. When this leaked out stocks already heading south really picked up
momentum. By the end of the day the NASDAQ closed just one point off its low of 2207
and many tech stocks closed on their low of the day as well. Looks like a retest of recent
lows is next on the NASDAQ’s agenda.

In after hours today Avanex (AVNX) said it will miss this quarter's earnings by 50%. This
stock closed the day at $23 and is now trading in after hours at $19. Altera (ALTR)
reported similar news after the bell and it's being held with no meaningful trades. I have
seen bids at $20. This news should drive stocks lower again tomorrow and through out
this earnings season. This is why holding stocks overnight in long position won’t be
possible.

Tomorrow Mr. Greenspan speaks before Congress and you can be sure his words should
once again move the markets short term. However nothing will change the dismal short-
term earnings outlook for most companies.

With the NASDAQ closing on its low for the day, the chance of this index moving lower is
much greater. With this in mind I have a few stocks that look like they may want to move
lower. Here they are.

1/3
Here are a few potential short candidates with my short entry point. NEWP at $47, ONIS
at $33, OPWV at $38, PLXS at $32.

At the rate these former high flyers are dropping, most of these stocks will be $20 to $30
in no time. On a more positive note, when the bull wakes up and charges again, many of
these stocks can rise to over $100.

2/3
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 28 February 2001

Hello out there stock fans. Greenspan spoke before congress today and the markets
reacted by shaving over 200 points off the DJIA and over 78 NASDAQ points before an
end of the day recovery cut losses by 25%.

Meanwhile bear market behavior in the chart patterns continue to be the norm on most
stocks and sectors. Another strong contrarian indicator is bullish sentiment among stock
advisors being at or very near a 14 year high at 61.2%. Very high bullish sentiment is
suggestive of little buying power and is associated with market tops and not the beginning
of a market move or even market bottoms.

Speaking of market bottoms, when might we find one on this very ill NASDAQ? Not even
factoring in the charts, we can see there is no spark to move the markets right now.
Earnings are still decelerating rapidly and recently the PPI and CPI have shown spikes in
inflation which may hamstring the Feds interest rate action. Until things change or are
perceived to be changing, the market may continue to stagnate or go lower in value.
Having said that here is a chart of the NASDAQ with some comments.

Here is a chart of the DJIA and it looks like it may want to continue to lower.

1/3
There were two good picks last night in the charts with NVLS and DPMI lowering nicely
today. I think DPMI looks best to continue lower. On that chart of DPMI, the trend line may
see a re-test at $71. If it does it would be another possible time to short once again.

There are very few stocks to consider shorting right now. In time more charts will set up
and I’ll have them for you. Here are a few, but I really think they are somewhat on the
weak side. These are shorts. AEIS at $22, KREM at $71, LAB at $43, LEH at $68.

Model Portfolio

The model portfolio remains in cash.

Tomorrow and Saturday Maya will have reports for you and I’ll see you on Sunday.

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

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 4 March 2001

Hello out there stock fans. A strong short covering rally ensued on Thursday sparked by
rumours that IBM believed things were going better than expected. Stocks rose with
hopes of better things to come. However, after the bell on Thursday Oracle (ORCL) pre
announced that earnings would fall short of expectations. Tech stocks once again gapped
down on Friday providing another crushing blow to anyone who bought stocks in
Thursday's rally and refused to cut loose of a losing strategy.

The NASDAQ has finally dropped down to 4 standard deviations below its 200-day
moving average line. This is an extreme deviation from this line. This has been a stopping
point for the NASDAQ in the past. By the way, at the peak of the NASDAQ run last year
the NASDAQ was 4 standard deviations above its 200-day moving average line, which by
all historical measurement was two times above normal maximum extension.

In addition to the NASDAQ being 4 standard deviations below its 200-day moving
average line my overbought/oversold oscillator readings are now at some of the lowest
oversold levels I’ve ever seen them. If this were a more normal market I’d say we are very
close to a major bottom and we in fact might be. However with so many NASDAQ tech
stocks pre announcing lower than expected earnings with more to come, I find it hard to
believe that a bottom is near. I do think one may be close in a few months time.

There are numerous stocks to look at today for the active short-term trader. A few of
these might even work out for longer term but I really don’t see any quality right now to
speak of. Many energy stocks are perking up and their charts are suggesting that this
group may be ready to move once again as are the HMO stocks. Here are some of the
better ones that I can find.

This exploration company has outstanding earnings to date. Earnings are up 394% to .79,
while revenues ballooned 308% to $58 million. These energy stocks are slow movers but
these are about the only ones moving up right now.

1/6
Seitel Inc. also has outstanding earnings and is in the oil and gas group. Earnings for the
last reported quarter ending in September 2000 were up 900% to .30 while revenues
were up 82% to $44 million.

2/6
Precision Drilling just posted stellar earnings numbers. They were up 212% for the most
recent quarter to $1.31 while revenues were up 72% to $443 million. The stock looks
poised to move higher over time. There are 47 million shares total on this stock.

This last one has some of the best volume expansion in the market to date. This is in the
oil field services sector. Last quarter earnings that ended in September were up 27% to
.19 while revenues were up 55% to $56 million. The heavy explosion in volume tells me
that earnings due out soon should be exceptional. Here is the chart and by the way, there
are only 18 million shares total on this stock.

3/6
Of course there are many stocks that are still breaking down in the tech area. A few
stocks in some of the more sacred areas of late look like they may start to weaken. Lets
take a look at some and remember the market is deeply oversold so these may or may
not work out.

4/6
Here are some picks for the active day or short-term trader. Potential shorts first. NETE at
$39, FCEL at $44, NEWP at $42. A few longs are LH at $160 and NVR at $153, HGSI at
$58, CRA at $43.

5/6
A number of my momentum indictors are starting to slow. This means that the downward
force we have been experiencing lately is starting to abate on a majority of stocks. We
could have a short-term rally of some sort soon, particularly with another rate cut. I would
still not be an owner of stocks in long position overnight in the tech sector.

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 5 March 2001

Hello out there stock fans. The market shrugged off bad news today from a number of
chip companies that pre announced poor earnings coming up. The NASDAQ and the
DJIA posted moderate gains in light weather related trading. The NASDAQ moved up 25
points while the DJIA closed on it's high of the day, up over 95 points.

The semiconductor equipment stocks posted the best gains of the day and are also
showing very constructive charts. Novellus Systems (NVLS) moved ahead $3 on better
than average volume and is close to new market move highs. Other stocks in this group
include UTEK, AMAT, RTEC, VSEA, DPMI, LRCX, PLAB, KLAC, VECO and KLIC. When
the market turns positive this group has the best looking charts and should perform better
than any other group. They also have very low P/E’s, which mean they have very large
earnings per share. There’s plenty of room for P/E expansion on these stocks when and if
the market gets going again.

Lets take a look at a number of these stocks and you’ll see that the chart patterns are
fairly tight in their daily bar movement. This is a good sign that accumulation is taking
place. My favorite here is NVLS. I’ll start off with it and then on to KLAC.

Earnings on this stock are impressive, up 156% to .69 while revenues are up 103% to
$389 million. P/E is just a scant 23.

1/4
This stock has big earnings too, up 119% to .57 with revenues up 73% to over $550
million last quarter ending in December. P/E is just 20 on this mid cap stock. All of the
stocks in this group will be reporting earnings next month.

It was another good day for energy stocks too as oil moved up about $1 today. The oil
index (XOI) has a series of higher lows and is close to having a completed base. Energy
stocks often start to move this time of year as summer approaches and demand soars.
Lets take a look at this index to see how it shapes up. This chart is compressed to a
weekly format. Energy sector funds should do well with a chart that looks like this.

2/4
Here is one of the reasons why this index is on the move. Chevron Corp (CHV) is
breaking out of a long two-year base. Here is it's chart compressed to a weekly format.

I’ll have more tomorrow

Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 March 2001

Hello out there stock fans. A nice rally today in the NASDAQ with the NASDAQ posting a
gain of 61 points on fair volume while the DJIA closed the day up 26 points after being as
high as 127 points intraday. Many leading tech stocks gapped up $2 to $5 at the open
and then added to these gains only by $1 to $2 during the day before many of them gave
back much of their gains by the close. Veritas (VRTS) was a standout today and closed
up $7 on volume expansion of 30% over normal daily average volume and was one of the
better closing stocks today in the technology sector.

The best groups of the day were the energy and semiconductor equipment stocks, with a
few of the telecom equipment stocks pulling up the rear. Most all of the Semiconductor
equipment stocks moved up well and a few of these hit new highs today like Photronics
Inc. (PLXS). This stock broke out of a fair looking base on over 200% expansion in daily
average volume. Lets take a look at this potential winner in a group that’s turning the
corner and gaining strength every day.

Most of the stocks in last night's letter moved up fair with both NVLS and KLAC breaking
out from those small trend lines. I suspect these two and others in this group may do
some horizontal work before moving higher.

1/3
In the energy sector a number of those slow moving exploration stocks that I have
highlighted over the past few days are adding to their gains. Horizon Offshore (HOFF) hit
new highs on near record volume today while a stock I had with a buy point of $38 last
week is finally on the move Patterson Energy (PTEN). PTEN is now breaking out on fair
volume and the group, as a whole is one of the only groups where most of the stocks are
close to or at new 52-week highs. This is very good and shows lots of strength in this
sector. Here is a chart of PTEN.

There are just a few picks for the active day trader with buy points. ORBK at $42 and
MERQ at $50.

I’ll have more tomorrow folks.

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 7 March 2001

Hello out there stock fans. Abby Joseph Cohen, chief investment strategist at Goldman
Sachs, says to raise your exposure to stocks by 5% and the DJIA moves up 138 points in
response. The NASDAQ moved sluggishly most of the day with little progress but
managed to finish the day up 19 points on light trade.

Energy stocks continue to lead the market as these stocks make higher highs and higher
lows. Many are breaking out of tight formations and moving ahead and a number of them
are at new 52-week highs. Meanwhile tech stocks continue to suffer with just a few
moving up like Check Point Software (CHKP) tacking on $4 and Converse Technology
(CMVT) moving up $6. Both of these stocks are just rebounding from a deep 50% sell off
that occurred during the month of February.

Meanwhile Broadcom (BRCM) moved sharply lower on heavy trade following an

announcement that this quarter's earnings would fall by nearly two thirds. Estimates were
for this company to earn around 31 cents but now the company said earnings would be
about 9 cents. This stock had near record volume today and closed on it's low of the day.
This stock could trade down to $30 soon.

After the bell today many companies confirmed lower than expected earnings are due out
come next month. Yahoo! (YHOO) confirmed that it will have about 180 million in
revenues vs. 310 million just this past quarter. It also said it will have break even earnings
and not the projected 5 cents per share that it forecasted two months ago. This stock is
down $3 in after hours trading. Also reporting poor earnings and revenues are Tellabs
(TLAB), Tibco Software (TIBX) and Cree Inc.(CREE). This bad news in tech land will not
end soon folks and is the reason that owning tech stocks overnight right now is not
something to consider.

Given most tech stocks in town are pre announcing poor earnings, the Semiconductor
equipment stocks continue to hold up very well. So far the better ones are still sitting near
new move highs and when and if the Feds cut rates these stocks might move. Again
there are no guarantees and again, holding any tech stock overnight may be harmful to
you portfolio. Never the less here are a few charts to look at.

1/3
2/3
Maya will be back tomorrow with another In Focus Report 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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 March 2001

Hello out there stock fans. Intel (INTC) announced that revenues will fall 25% below
estimates and margins will shrink to 51% of sales after the bell on Thursday. This along
with a stronger than expected payroll report on Friday caused wide spread damage to the
already beaten down tech sector and pushed the NASDAQ down 115 points and the DJIA
down 213 points.

The NASDAQ hit new closing lows and seems ready to break the 2000 mark on the next
tech stock to pre announce poor earnings which should come any day now. In fact these
pre announced earnings shortfalls should continue daily for the next 4 to 6 weeks or until
all earnings are out for this quarter. This is why the model portfolio has been in 100%
cash since early February and all stocks that have been listed here since early February
have been for quick day trades which I’ve mentioned many times since early February.

In time things will change but not until the market has completely discounted all bad news
and has readjusted all valuations to account for such poor economic conditions in tech
land.

Let’s take a look at the NASDAQ where we will see a nice gap down on Friday. I’ve also
drawn in three lines that might give some clues as to when this decline might end or
come close to bottoming out. These lines suggest we are within just a few weeks of a
bottom. These lines also show that this could be the end of wave five of this move down
in an Elliott wave count.

1/4
We did have a very powerful break in this stock I had listed here to short at $86 early last
week. Express Scripts (ESRX) had a powerful break away gap to the downside on
Thursday on record volume. Seems folks can’t get out of this stock fast enough. Here is
my original chart of this stock.

2/4
Here is one of the oil service stocks that I mentioned a week ago that has broken out and
is moving up slowly in a manner typical of this group. Here is the original chart.

3/4
Here are some potential short candidates depending on market conditions for the active
trader tomorrow. CCMP at $61, HGSI at $48, JNPR at $53, CERN at $42, CIEN at $61,
CMVT at $75, IDEC at $51, PPDI at $48, PHCC at $39, VRSN at $40.

Here is a chart of a possible short depending on market conditions tomorrow and if this or
any of these get an upgrade or downgrade.

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
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 2001

Hello out there stock fans. The NASDAQ cracks below 2000 today with the greatest of
ease and closed at a staggering low of 1923. The DJIA moved lower today too as it shed
over 436 points and closed below support and now seems poised to move down to 9700
shortly. And to top things off the S&P 500 officially moved into bear market territory today
with its drop of 53 points, putting this major index below the 20% mark that signifies a
bear market. All in all things are not looking good for the stock market in this interest rate
lower cycle.

However, we here at Chartpattern.com knew that these major indices were headed for
trouble. Many times recently I've shown negative charts of the DJIA with the Head and
Shoulders formation. This head and shoulders formation with a lower right shoulder (see
archives in the member login area) strongly suggested trouble was ahead on this major
index.

I also had the break of the rising trend line with ascending triangle on the S&P 500 chart
two months ago when this index was at 1364. Today this index stands at 1164 and is
below its lower trading band and lower channel line. Let's revisit these indices to see what
they look like today.

My DJIA chart is a weekly chart and not a daily chart. The weekly format more clearly
shows the big picture.

1/5
Here is a chart of the VIX which spiked up above 35 today. This can often signal that a
reversal to the upside in the market could occur soon. However, the more this indicator
becomes known, the less effective it will become with time.

2/5
Last night's stocks selections for shorting, which for those of you that are new to this is
the opposite of owning stocks to go up, worked out very well. Some of the bigger winners
were in the biotech area like IDEC, which is my mistake and is the name of the company
with a tick symbol of IDPH not IDEC. It lowered in price by $5 while HGSI hit my entry
point and shed $8. PPDI moved lower nicely with a $5 drop, VRSN moved down $3,
CMVT moved down $8 on heavy volume. The big hitter today was CIEN, which gapped
down and ended the day down $11 on heavy volume. CCMP pre announced after the bell
today and is down $8 in after hours trading. All in all, a very profitable day.

The only problem now is the VIX indicator. Listing any other possible short plays tonight
when the indicator is so high is trouble for short-term traders. As we know the market can
move up swiftly from here when this indicator is this high. Tomorrow’s retail report could
be the spark that moves the market up and traps potential short players. It could also be a
report that drops the market further. However I don’t feel comfortable listing stocks to
short until the VIX moves under thirty or so.

Here are a few charts to review with GENZ looking best to move lower.

3/5
I’ll have more tomorrow.

Daniel J. Zanger

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 13 March 2001

Hello out there stock fans. The NASDAQ hit 63% off its prior high set this time last year
when it closed yesterday at 1923. This is just a hair over the 62% retracement mark that
many use in Elliott wave work. The main Elliott wave retracement numbers are 38% 50%
and 62%. Today the NASDAQ moved up sluggishly but managed to close the day up over
90 points. Some of this may be attributable to this Elliott number being hit and some to
the VIX being above 35 as well.

Lets get to some charts and some possible movers in the Tech area and again I do this to
highlight current chart patterns more than anything else. As you know, holding any stock
overnight in long position is a big risk in this declining GDP environment. I consider these
for day trades only for now. Maybe after earnings season we might possibly get to buy
and hold for longer periods of time.

These three stocks I had here last Wednesday and I said that they would need two to five
more days to complete the handle. Today at day four, the handle is complete and
tomorrow these stocks need to move out or else these patterns will be far less effective
and these stocks will be prone to failure. To see the most perfect Cup and Handle see the
home page in 'Understanding chart patterns'. Click on to see 'Cup and Handle'. Scroll
down to the bottom where you will see CMVT.

1/4
Here is chart to look at for the beginner to get a feel of how effective trend lines can be.

2/4
Here are some potential movers on the long side for tomorrow. This of course depends
on the behavior of the market tomorrow and upgrades or downgrades are not known at
this time which could move stocks one way or the other as could an earnings warning.
These are for day trades only and holding overnight is at your own risk. OPWV at $32,
QCOM at $53, SEBL at $30, QLGC at $31, JNPR at $60, VRTS at $60, VTSS at $45.

MODEL PORTFOLIO

The model portfolio has remained in cash since early February.

I will be back tomorrow but not this Sunday as I will be speaking at the AIQ Trading
Software conference in Tampa FLA this weekend.

Daniel J. Zanger

Chartpattern.com

P.S. As you can see we have a new format that sends out the e-mail in HTML format.
HTML is supported by all new current versions of either Netscape or Internet Explore. If
you have Eudora or another e-mail program you will need to upgrade to the most current
version.

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 March 2001

Hello out there stock fans. Trouble in European markets overnight and further potential
troubles in Japan sent fear throughout the markets worldwide, which spilled over to our
markets today. The DJIA opened sharply lower and closed below 10,000 today while the
NASDAQ held tough with many market sensitive stocks closing near positive territory.
Most of these were the semiconductor equipment stocks.

Of course today's break impacted the outcome of those semiconductor stocks that were
set to move up from last nights charts. NVLS, AMAT and KLAC still held tough most of
the day even though they tried to move up. I would however classify their attempts to
move up as feeble at best. KLAC for instance traded over 13 million shares or about 50%
above daily average volume and could only move up one point for the day.

The longer it takes for these stocks to break out convincingly the more prone and likely
they are to fail. Today we heard from Intel Inc. that it may in fact cancel some new plants
that it had scheduled to build and stock with new equipment from these very
semiconductor companies. That may be the reason why these stocks didn’t move up
today and break out of their bases. I for one am staying clear of these three stocks as I’ve
learned that when they should move and don’t then there is usually a good reason. The
charts do however still remain respectable looking as of today.

Had it not been for the hard break in overseas markets last night the NASDAQ I feel
would have put in a strong day today. This NASDAQ may come to life tomorrow and I
believe these are bounces which may be good for short term long side day trades with no
stocks being held in long positions over night.

Here is a good-looking short play on a slow moving stock.

1/3
Here is a big cap technology stock with a Cup and Handle formation and is struggling like
the rest in this current market environment. Again this stock and others for long
consideration put you at risk if you hold them overnight. However it’s my job to show them
so here it is.

2/3
There are just a few stocks that look like they might want to move lower out of a
consolidation so here are my short plays. RIMM at $37 and CIEN at $53. RIMM looks
best.

By the way energy stocks are starting to break down from their formations, which means
that owning these stocks should now be avoided. Seems the street fears that a worldwide
slowing would jeopardize high oil prices even though OPEC is meeting this week to lower
production. P>Remember I will not be here for a letter this Sunday. I will 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
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 March 2001

Hello out there stock fans. A very slow and sluggish start to trading today as numerous
stocks drifted lower on light volume. However with about 2 hours to go in the trading day
a round of short covering started along with some buying in anticipation of a rate cut
tomorrow by Mr. Greenspan and Co. Many stocks that were down 2 to 3 points reversed
and closed up 2 to 4 points or more, like QCOM which closed the day up over $7 on
average volume.

Total volume on the NASDAQ today was a mere 1.75 billion, which is very light compared
to days when this market is down. This light number suggests that short covering was not
at all heavy nor was there any real buying interest. After all, tomorrow's 50 basis point
rate cut, which is what’s expected, is already factored into the market. Only if the Feds cut
rates by 75 basis points, which the futures market suggests is unlikely, would this market
move up sharply.

What is needed now is for stocks to stop going down and to start moving horizontal. A
number of stocks are starting to do this and hopefully in time will prove to be the
beginning of the end of this wicked and vicious bear mauling that we’ve experienced over
the past year. In addition to horizontal bases, one of the better indicators this bear is
weakening is a dry up in volume. Most notably, the dry up in volume seen on Cisco
Systems (CSCO). This suggests that the selling pressure is over with for now and that its
valuations are now reasonable for its growth in this market environment. Let's see a few
charts that are suggesting this.

1/3
Here is a once powerful leadership stock that had a record volume day like Cisco
Systems did last week. So far, that record volume day proved to be the bottom for Cisco.
We might see the same on this stock.

2/3
As you might know the NASDAQ closed on its high of the day, which can more often than
not lead to high highs the following day. However with volume being so light and much of
today’s action due to short covering I think it best not to list any stocks for day trades.
Most of what I see is very suspect. In time, more stock patterns will set up and I can offer
more solid plays.

By the way if the DJIA rallies well tomorrow on the interest rate cut, look for strong
resistance at 10,300, which as you know was a prior support level. I do think there is a
good chance that the Dow will get there.

See you folks 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 20 March 2001

Hello out there stock fans. Cover your shorts for the rumor and sell your stocks or re-short
your stocks once again on the news. Regardless of what the Fed does these days it’s a
major buyers strike for the first time in nearly 20 years as the Fed loosens interest rates in
an aggressive fashion. The stock market is clearly telling us that we are in a different kind
of market which we haven’t seen since the last great market top which occurred in 1967.
Why else would the market sell off so deeply and so hard following a one and half
percentage point drop in only two and half months. I can never recall this happening in
my time of watching this market.

In fact we now have virtually the same economic environment as we had at the market
top of 1966-1967. Back then we had very low unemployment at about 4%, which we have
now. Low mortgage rates of about 6% which we have now, and we had very high
ownership of stocks like we do today. Today nearly 50% of all Americans own stock. In
reality there is no place left to go on the earnings front and no one left to sell your stocks
to, as everyone that wants to buy stocks already owns a considerable amount. The
greater the vacuum to buy stocks the greater the upside potential. The reverse of this was
true at the start of this major Bull Run in 1982.

One of the big differences and most troublesome between now and then is that back then
there was only a fraction level of margin debt compared to today. In fact the margin debt
recently has been put at the astronomical sum of around $250 billion dollars. This is the
most frightening part by far in my opinion. Combine this with a tax date due April 15th
whereby selling to raise cash is a need and the potential for a hard continuing sell off
could be at hand as selling to raise cash creates one margin call after the other.

Combine all of the above with the fact that the only thing left in front of us is a very poor
earnings season due up in three weeks and you can see that there is no place left to go
but south in my opinion. Let's hope I’m completely wrong but something tells me I’m
probably right.

Lets get to some charts of the markets and then we can get to some stocks.

First up is a chart of the Dow Jones Industrials and you can see that it has consolidated
nicely at the 9900 area and now seems ready to move lower.

1/5
Now on to a unique chart of the NASDAQ whereby it shows closing prices only and not
daily bars. I do this so I can get in a larger time frame on this chart and for no other
reason.

2/5
By the way in this chart you can see that so far each major wave down on the NASDAQ
has been just about 2000 points before the NASDAQ found a major support level and
rallied. If I subtract 2000 from the last rally top of 2892 this puts the NASDAQ at the
unheard of level of around 892. No one ever thought the NASDAQ would get as low as it
is today so I certainly can’t rule this absurd level out even though I seriously doubt it.
Nobody knows when and where the ultimate bottom will be at. A drop to this low level
would complete wave 5 of an Elliott wave count on a compressed weekly chart in equal
measured moves. I will have a chart of this wild and absurd concept of measured moves
tomorrow.

Now on to some picks if this market stays negative tomorrow. This first stock is one tough
stock, but today it broke it's rising trend line and we might see follow through to the
downside tomorrow now that it has broken this line.

Here are two Dow components that seem ready to move lower soon.

3/5
Let’s revisit a stock I had here a few days ago.

4/5
Here are some potential stocks that might want to move lower tomorrow with my short
entry price. VRTX at $30, SEBL at $25, PLXS at $26, PDLI at $38, INTC at $24.50.

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.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 March 2001

Hello out there stock fans. Today I promised to show you the chart of the NASDAQ on a
weekly compressed basis and the measured moves it's made since the burst of the
bubble last year. Let me first say that I doubt this last third move will come to fruition but
it's interesting to see how effective these models can be.

Now on to the VIX index where we can see it is ready to break out and possibly get up to
an area rarely seen. In the past when this index reached the high 50’s for many
consecutive days it usually meant an end to the panic sell off and a beginning to the
rebuilding process. Will this market make another exception of this historical tendency like
we're now seeing on the interest rate front? Stay tuned stock fans, do not change that
dial.

1/4
Folks, with the slowing of our economy now impacting the world, it’s a no brainer that oil
and gas prices will soften and with that so will the earnings of these companies. Here is a
good index, the gas group, and here I see that this group is weakening. This index has
options to play with if you like. I considered selling calls but shorted some stock instead.
Here is a chart if the XNG.

2/4
Here is a list of some stocks to check out for you folks with good chart programs.
Download and see for yourself how the charts appear to be weakening. These stocks
make up the XNG index. APA, APC, BRR, BR, EEX, EPG, ENE, EOG, KMI, NFG, NBL,
OEI, PPP, STR, WMB,

The markets have moved down so much in the past few days there are no more set ups
to trade off of. I hope to have some on Sunday. I guess we'll just have to hold a few of the
winners from yesterday like MSFT and GENZ.

One note for NASDAQ fans. New lows on the NASDAQ today reached panic levels with
over 400 companies hitting new 52 week lows. Many times when we have seen 400 new
lows on this index the NASDAQ has started to turn and rally up. This is just a note and
not a projection on my part.

For those of you that would like to broaden you horizons on the bigger historical picture of
the markets I’ve researched some information on a little known historical valuation tool.
I’ve known about it for a very long time but as a strict momentum player I never cared to
look at it much. I still don’t care to as long as stocks move in one direction or the other
with an established trend in place in which I can make money. However the lack of
movement in the averages to the upside as the Feds ease interest rates lead me to
present this here to hopefully shed some light on why this is happening. This is in addition
to just a vast amount of wealth being wiped out by the bursting bubble.

What I’m talking about is Tobin’s Q. Here you can read all about it and go to the search
engines where you can read more. In the charts you‘ll see that the value of US
companies is close to 2.2 times their normal standard deviations in value and far above
historical values.

Here is an explanation of Tobin's Q.

You will see by historical analysis
that our markets are way out of
whack and in a slowing economy
things can only continue to go lower.

https://chartpattern.com/tobin.html

Here is an article published in 1999

a full year and a half before the
market collapsed. Not only did it
foresee the collapse, it explains why
interest rates may have no impact
on equities in the next fed easing cycle.

https://chartpattern.com/econ.html

I will have more on Sunday

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 25 March 2001

Hello out there stock fans. Last Wednesday I mentioned that the NASDAQ finished the
day with over 400 new lows and this could lead to a turn around to the upside. Thursday
and Friday saw some fair action with the NASDAQ posting its first positive week in 7
weeks.

Classic signs of a bottom are still not in place such as the Bullish sentiment reading which
at over 50 is still bullish. Major bottoms are seen when this number gets under 40. Put to
call ratios are still under 1 and the VIX index went over 40 but closed the week at under
40. In last week's letter I showed that major bottoms come when this index hits 50 and
stays there for sometime. An ideal bottom is made when all three of these items line up.

Meanwhile a number of stocks are starting to act fair, showing horizontal action. A
number of potential leadership stocks are starting to break out of solid bases. Last
January I talked about the NASDAQ needing more horizontal work when it was at 2800
and it then promptly broke down out of an ascending triangle. This index needs lots of
horizontal work right now. Worst case is we rally up and create another rising ascending
triangle which as you’ve seen is devastating. Horizontal work would negate this from
happening.

Now on to some stock charts that are looking good. Of course they are all tech stocks
and a number of them I had here earlier this month. First up is the SOX index and here
we see that this major index is ready to break out after four successive tests of its lows.
Then, lets look at a number of stocks in this group that are moving out in advance of this
index breaking out. These stocks could be leaders in this group.

1/4
2/4
3/4
Now here are some charts that are coming around with some potential buy points for long
positions. The market needs to be positive though for these to work. So heads up! SONS
at $29, ADIC at $18, EMKR at $28, GS at $90, NEWP at $41, QCOM at $60.

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 26 March 2001

Hello out there stock fans. First of all let me say that we are going back to our original text
format newsletter with hyperlink charts, as too many browsers and e-mail programs just
couldn’t handle the HTML format we were trying to use. Maybe in time all email programs
will be able to do this but until then it's back to the dark ages.

Meanwhile the DJIA staged a very nice snap back rally today after having plunged some
1300 points over the past two weeks. Snap backs are common after a sharp break and
can last a number of days to a few weeks. After a period of time to the upside we can
move lower again and retest recent lows or make new lows once again.

On the NASDAQ, trading volume was very light today with many high volatility stocks
trading just half of their daily average volume. Tomorrow consumer confidence numbers
are due out at 10 am EST. The market may be on hold for this number which the Feds
say they watch very closely.

I mentioned in last night’s letter the need right now for the NASDAQ to have some more
horizontal action so as not to create another ascending triangle. So here is a chart of that
triangle. Again, horizontal action on the NASDAQ would negate this from happening.

1/4
More horizontal action would also develop great looking charts on most of the
semiconductor stocks. This as you know is capable of producing large earnings per share
which this market is so infatuated with. Here are some potential bases in formation that in
time could prove to be fruitful.

Again, in this market environment much has to happen or should I say not happen for
these to eventually prove beneficial. I will also say that the SOX index was rebuffed by the
trend line that I showed you yesterday.

2/4
Here are a few other stocks starting some horizontal action. EMC, VRTS, JNPR, ERTS,
and GLW. Until these stocks break out on serious volume I would not entertain the idea of
owning these just yet.

Last night I had a number of stocks to consider if the market was positive. This morning
NASDAQ futures were up 40 points or so but there was almost no volume on instinet
before the open on most stocks. In essence no one wanted to front run stocks. This is a
sure sign in a bear market that weakness is just around the corner. This was the case
today as the market was mixed early but weakened by mid day.

Also as you know I’ve suggested here a number of times that one should consider not
buying stocks in the first 20 to 40 minutes of the day. This time of day is reserved for
amateur hour. I find it best to sit back and watch the action until nearly one hour has
elapsed.

Hopefully soon more set up will occur and I will have them for you.

MODEL PORTFOLIO

The model portfolio continues in cash as it has been now for 7 weeks.

See you tomorrow

Daniel J Zanger

Chartpattern.com

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 March 2001

Hello out there stock fans. Slow trading at the start of the day today with a slight bias to
the downside on the NASDAQ until the consumer confidence index was released at
10:am EST. The reading came in at 117 and is a good 10-point improvement over the
prior number. Stocks then started to turn positive, but volume and aggressive behavior
remained weak with stocks making very little progress.

Most of the semiconductor equipment stocks were on the move early, with the leaders in
this group up 2 to 3 points intraday. Many of them nearing breakout highs until mid day
when selling came into the market and returned these stocks back to where they started
out the day.

Meanwhile the daily scenario remains the same. Moderate morning buying with stocks up
slightly until mid day when napping bears finally awake and start selling again until the
markets close. Once this scenario of afternoon selling stops or subsides it will be more to
the liking of the bulls who might then sense that sellers are finally exhausted.

All the while a little known and largely under followed group the Gaming group is on the
move in a big way. Numerous stocks in this group are making very strong moves even
with bears on the prowl. These stocks are very extended and are in need of a pull back of
2 to 3 points before I would consider them. At any rate here they are.

1/5
All of these have strong seasonal earnings and low number of shares outstanding.

Now on to the best looking charts in tech area today. I’ve had all of these here a few times
over the past two weeks. They are all in the semiconductor equipment area and
regardless of bad news in the techs these stocks refuse to go away. This is a good sign

2/5
and their charts are looking fair to excellent. AMAT looks best due to its tightness of the
pattern.

3/5
Here is a chart of a stock that is trying to turn the corner.

After the bell PALM and NT reported more bad news and a few stocks in the tech area
were down in sympathy. This could impact the opening tomorrow but should not hurt the
top six stocks listed here.

4/5
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.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 28 March 2001

Hello out there stock fans. The stock market was clearly not happy again with the same
old negative news now rehashed three times out of Nortel Networks (NT) yesterday. Or
maybe it was the bad news out of Palm Inc.(PALM) about slowing sales that sparked
another sell off in the NASDAQ today. Couldn’t be that as we already know the economy
is slowing. To me it seems to be more rooted in technicals than anything else and some
tax selling and maybe a dash of end of the quarter portfolio window dressing.

At any rate the NASDAQ opened today with a sizeable gap to the downside and closed
on its low of the day. It now appears set to retest the lows it set just last week at 1794. A
retest of the lows is very common and I expect to see the DJIA to retest its recent lows of
9047 in time.

By the way the DJIA moved from 10,949 down to a low of 9047 or 1907 points down. The
Dow then moved up 947 points to 10,012, which gave this big cap index a 50%
retracement of the first down move. Remember the retracemnt numbers in the Elliott
Wave count are 38, 50 and 62%. Now that the Dow turned south as of today we should
now look for its prior low to be tested shortly or taken out with lower lows.

I would also like to note the DJIA has just broken a 6 year rising trend line when it broke
down out of that diamond formation that I had two weeks ago. This is a major break of a
major trend line. This to me suggests that this index may have a year or two of sideways

1/3
action before it sees its old high again. I will have a chart on this on Sunday.

Here is a stock with a double top and it could head lower from here.

Here are a few more stocks to look at for the active chart reader with my short points.
LEH at $64, GS at $86, LLTC at $41, MERQ at $41, MSFT at $55, ONIS at $20.
Remember shorting is for the active day trader or swing trader on real time.

By the way as a number of you may remember I’m starting a new site called
Stocktipper.com. We are about 1 month away from launching it. This site will have a
number of things that Chartpattern.com has with some additional things such as real time
updates and a section on options. Fari Hamzei will host the options section. He is quoted
often on CNBC and here is a small dose of what you can see and expect.

"Today, we needed to watch one of our proprietary indicators called the "NASDAQ-100
Dollar Weighted Put/Call Ratio" or NDX $wPCR for short.

This afternoon around 2:00 p.m. EST, NDX $wPCR stood at 0.79.... This says there were
more Call dollars on this behemoth index than Put dollars.... This is viewed as very
bearish.... We expect a follow through to the downside towards the close....

At 3:10 P.M. EST, The $wPCR was at 2.33, we were seeing some put buying, but not
what is characteristic of a short-term bottom. It should be noted that the sheer volume on
dollar basis was healthy....

2/3
At 3:25 p.m. The NDX had dropped another 20 points. At 4:00 p.m. EST, the market
closed with the NDX down 133 for the day. The NDX $wPCR stood at 2.45, still with a tilt
on the bearish side. Dow closed down 162 & SPX down almost 29 points.

What does this all this mean: we should see more selling tomorrow.... What to look for....
Watch the total option chain $volume for NDX...once this index is close to or over
$20,000,000, then start tracking the $wPCR for NDX. Numbers near 20 & up mark short-
term bottoms.... Anything around 5 or under and this market will continue to bleed to
death". Fari

For a greater understanding of this you will be able to see this in real time on a page of
real time dollar weighted options when the site is up and running. It’s an excellent tool for
real time stock traders and options traders alike.

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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 April 2001

Hello out there stock fans. The NASDAQ continues to show weakness while the DJIA is
showing some signs of resiliency. On Friday the NASDAQ hit exactly the same low point
of 1794 that we saw the week before, giving us a true double bottom. However most of
the time when an index hits a double bottom such as the one seen in October 1998 it can
often explode from the bottom and not merely languish around like we saw in Friday's
action.

I expected much more upside from Friday’s retest of its prior low. This sluggish action
suggests to me that we probably have a greater chance of moving lower in time than we
do of moving higher. However we are entering a new quarter starting tomorrow and
institutions may move on the markets. Hopefully they will do something more positive
than what we saw on Friday.

Also on Friday the Chicago Purchasing Manager's Index fell to 35, which was much lower
than the 43.2 reading analysts had expected. The number was the lowest reading since
1982 and shows how dramatic the slowdown is in the manufacturing sector. Anything
under 50 shows contraction in the economy, while anything over 50 shows expansion in
the economy. This low reading is saying that lower interest rates are not working as of yet
and we may need to see lower rates sooner than expected.

Today I have some charts that many might see as some sort of voodoo. When I first saw
these types of charts I was dumbfounded and didn’t know what to make of them until
months later when they proved to be correct. It really does take months and years before
all this stuff sinks in.

All of these charts show a long term parabolic curve which has been broken. These two
charts are similar to the NASDAQ except they took much longer to create and therefore
might take longer to unwind. Only time will tell but that’s my guess.

These charts are a little different, as they are calculated based on the closing of the day
and not daily bars. They therefore give a line, which works well on my AIQ program to
better highlight what I’m trying to show. First up is the DJIA and then the S&P 500.

1/3
There are no other charts worth showing tonight and no day trader picks. During the week
there should be some decent selections to look at.

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 2 April 2001

Hello out there stock fans. I mentioned in last night’s report that the NASDAQ was less
than enthusiastic about seeing 1794 once again on that double bottom bounce attempt on
Friday. I also mentioned that lower lows were probable in time and all it took was a
whopping 72 hours for this to happen.

Trading action was nothing short of feeble at the open today until the NAPM report was
released at 10 am EST. The market then tried to move up and volume increased but
stocks were basically just spinning on this news and made no meaningful positive price
progress. This situation occurs when sellers meet buyers in equal numbers and continues
until one wins out over the other. In today’s case bears prevailed once again and the
mauling was underway. Gee what’s new?

The headline of the day was the Semiconductor index (SOX) breaking a lower support
line that it has repeatedly bounced off of since mid December. It did it convincingly today
which suggests this bear will be with us a little longer. Here is that chart.

With this index breaking down it does suggest that shorting semiconductor stocks may
work to your advantage. As soon as we can get a snap back of some sort I will have a
few dozen listed here for you to consider to short.

1/3
Here is a chart of the NASDAQ long term and again it's in the format presented in last
night’s letter when we looked at the DJIA. Here you can see that the NASDAQ has
broken its long term rising trend line and now needs to hold the horizontal line at the 1750
area. If this line goes, I understand that a long-term growth line exist which dates back to
the start of the NASDAQ.

This growth line is calculated from the original start of the NASDAQ times its annual
historic growth rate of 16.7%. This puts the trend growth line at 1660 or very close to it.
All of the indexes have such a trend growth line and as soon as I can get one of the DJIA
I’ll have it here for you.

Again, with so many down days I see no stocks tonight that have any patterns to trade off
of right now. As soon as the market moves up for a few days there should be some set
ups to look at and consider for trades and I will have them here for you.

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.

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 April 2001

Hello out there stock fans. The NASDAQ wasted no time in breaking through another
support line, which I showed you last night. That long-term support line was at 1750 and
volume was heavy as it was broken. Breaking a support or resistance line with heavy
volume is generally considered confirmation of that directional move. The DJIA did much
the same yesterday as it headed down for a potential retest of its recent lows near the
9100 area.

I personally think the DJIA has just started a 5 wave Elliott Wave count similar to that of
many other indexes such as the Philx Banking index (BKX). I have a chart tonight
showing you a potential start of a 5-wave count scenario. It may not turn out to do this but
just the same it could. We could also stop at 9100 after the retest of its prior lows but I
doubt that. Here is the chart.

Today the Volatility index (VIX) gapped up and went over 40 again but it also closed
under 40. Historically the market has meaningful bottoms when this index trades at 48 or
better for a number of days. We are working our way up and until it gets there expect this
market to stay in a downtrend. I believe it’s important to monitor this chart as it has been a
key ingredient to important turns in the market.

1/5
This chart is a daily bar chart compressed to a weekly format so you won’t see today’s
gap up.

Today the NASDAQ had well over 500 new lows for the day. Generally we see this index
turn up shortly when we see anything over 400 daily new lows. The last time I mentioned
this, about 10 days ago, the NASDAQ had a feeble rally of just a couple of days before it
once again turned and dropped some 350 points to today’s new low of 1660.

We also have the NASDAQ trading below the lower AIQ trading band, which can often
signal that a turn is due shortly. In this weak market I doubt we will see much of a turn, but
I’m keeping my fingers crossed. Here is a chart of this bludgeoned index.

2/5
Here is the Phily Banking index (BKX), which looks like it has entered into its 5th and final
wave down. This is what the DJIA could look like in a month or two. This index has
options only to trade and it moves fast with big price swings.

3/5
I'm sure most of you are already shorting everything and anything that moves on the
NASDAQ, but I have two specific stocks to bring to your attention. One is IBM and the
other is VSTR. So far, IBM is the only big cap tech stock not to pre-announce that I can
think of. If CSCO and SUNW and virtually ever-other tech stock is pre-announcing, how
could it be that business is so good at only this one company? If and when this stock
does pre-announce, I think all heck will break lose again in tech land and this stock
should get hurt as have all the others. I think upside potential is limited and downside
potential is overwhelming.

The other is VoiceStream (VSTR). Supposedly, this stock is slated to be acquired by

Deutsche Telcom (DT). The rumor mill has it that this deal may fall through. I don’t know if
it will or won’t but if it does VSTR would probably break down faster than a falling piano
out of a 30 story window. Also DT stock is falling fast, which should lower the stock price
of VSTR. Both of these stocks, IBM and VSTR, I shorted today and I believe have better
short potential than upside.

Here is a stock that just broke a long channel formation. It should head much lower over
time.

4/5
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 4 April 2001

Hello out there stock fans. Another seesaw day on the DJIA today with this index moving
up and down faster than a yo yo in the hands of a 7 year old. The NASDAQ on the other
hand continues to move lower with no hint of meaningful buyers to be found.

Meanwhile the Semiconductor index (SOX), the Banking index (BKX) and the brokerage
index (XBD) are all moving lower with little resistance. The SOX and the BKX were down
27 and 24 points respectively. These indexes seem to be the way to capture large price
gains now that stocks that used to be $100 to $250 have disappeared from the
landscape.

The SOX has come down to a lower descending channel line. With some positive news
out after the bell and a number of stocks up in price as a result, we might see this index
attempt to bounce up 20 or more points tomorrow and possibly higher over the next few
days. Here is a chart of this index and be certain there is no guarantee that this index will
move higher at all. This index like many other indexes has options to play with if you’re
into options.

I thought I would check back with my options guy for my new web site Stocktipper.com -
Fari Hamzei. The last time he was here was last week and he gave us a look at $wPCR
(Dollar weighted Put/Call ratio) and how he uses his proprietary indicator to forecast

1/3
market sentiment and therefore direction. Last week he said based on his readings of the
indicator 'the market would bleed to death' and since then the NASDAQ has dropped over
three hundred points and the DJIA over 250 points. Here is an update from Fari.

'This past Monday, the option volume on our universe of stocks & indices went through
the roof. When all the trades were in late last night, the QQQ’s had traded (net) over half-
a-million contracts, which must have been a record. I‘ve never seen such volume and the
QQQ’s closed lower!

Next we had CSCO, MSFT and SPX all trading over 100,000 contracts yesterday. Since
June 2000, which is how far our archives date back to, every time 5 or 6 stocks and or
indices had 100,000 or more contracts traded in one day the $WPCR would soar to over
15. The following day we would bounce and rally for 2 to 3 days.

This time however it was different as the NDX closed at a meager 3.59 $wPCR . The fact
that we closed at 3.59 shows that there was low put volume and therefore low fear.
Historically high levels of fear accompany solid bottoms. This indicator says we have
more work in front of us before we see a medium term bottom and certainly more work
before we see a final bottom.

We didn’t do much better today. The NDX closed at 2.43 $WPCR on slightly lower options
volume, but the SOX closed at 0.58 with more than 6 times as much volume as
yesterday. What to expect from here... more blood on the street'. Thanks Fari

Next week I will be giving a live voice conference over the Internet to anyone here that
would like to listen in. I will be taking some questions and giving trading hints. I hope
some of the things I talk about will help anyone interested in better understanding trend
lines, buy points and selling rules.

The web site to go to and download the software is Http://www.PalTalk.com. Make sure
you have any firewalls and any Realnetwork or jukebox stuff turned off before trying to
login.

I also highly suggest that those of you who are serious about learning charts attend my
workshop in L.A. on May 12th. You'll learn a plethora of neat tricks and tools. It’s an all
day event and I will be providing workbooks with lots of different charts. I can assure you,
you will be a changed person by the end of the day.

This seminar will give you knowledge that you may never have otherwise gotten or may
have taken years of work to get on your own. Why not speed up the learning process?
There is a link on this letter below to get the details. This seminar is for novices with some
knowledge of charts as well as the very advanced. The last 3 hours to 4 hours of the
seminar will be very advanced. I hope to see you there.

If we can get a rally, things will lift and hopefully give us some patterns to trade off of. This
sea of $20 stocks is not giving me much to look at to tell you the truth. I’ll have more for
you 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 5 April 2001

Hello out there stock fans. A special update tonight due to today’s large price gains on all
indexes. Well folks I mentioned over the past few days that the NASDAQ was below its
lower AIQ trading band and would rally soon and did the same last night on the SOX
index. But I never thought we would get such a big lift off like we did today.

The DJIA moved up over 400 points on good volume while the S&P 500 moved up 47
points. This move on the S&P 500 means it could be ready to break a descending trend
line. Meanwhile the NASDAQ had a breakaway gap to the upside and closed near the
high of the day with just a slight amount of profit taking in the last few minutes of the day.
This is un-bear like market behavior as most of the time a vicious round of late day selling
sets in and mauls the unsuspecting stockholder.

The SOX index had a much stronger day than I thought possible with a big move of 59
points. Most stocks in this potential leading index had less than daily average volume
though, which suggests buying may be more short covering than a true desire to own
these shares. The SOX index also held short of a major resistance line at 527. This 527
line was its old support line, which now becomes resistance. Here is it's chart.

1/5
Here is a chart of the all-important S&P 500. The first of these charts is a daily bar chart
and the other one is a daily chart compressed to a weekly format.

2/5
This major big cap stock looks ready to move above a resistance line. If it does and stays
up above the line this could be a good omen for tech stocks in general. Microsoft Corp is
the stock and it’s a member of many indexes including the DJIA.

We have all witnessed stocks that break out and then promptly fail so be very careful on
owning any stock with belief that just because its broken out that it won’t fail. With that in
mind here is a stock or two that might be ready to move.

3/5
4/5
Here are some potential picks for the active day trader with the knowledge that we could
be stepping into a bear trap. MYGN at $36, ADBE at $35, ONIS at $23, NVDA at $64,
MUSE at $32, OPWV at $20. Remember all of these stocks are still in a very strong and
well defined down trend so be careful.

Here is a chart of the NASDAQ, which is the exact chart that I had here two days ago with
comments unchanged. It has been updated to the end of the day today.

See you guys on Sunday and remember there is plenty of time to own stocks with much
better and far safer times to come. Day traders can ignore this comment.

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 8 April 2001

Hello out there stock fans. A gap down on Friday at the open is how the market greeted
the employment report that was worse than expected. This is why getting excited about a
one-day counter trend rally in a bear market or a general market correction could have
negative impact on your portfolio. The trend is still down as the charts show and until the
trend is broken the trend is down.

The two major indexes that I showed you last week have lowered in price once again on
Friday. Both are still in well-defined downtrends and could stay that way through out
earnings season. Let's check back with them today and see what they look like now. First
up is the Semiconductor index (SOX) and the other is the Banking index (BKX)

Here on the SOX you see that it touched and therefore re-tested the prior support line
which has now become resistance. Resistance held and on Friday this index turned lower
once again. Today's chart is a daily bar chart compressed to a weekly chart.

Here is a view of the BKX and here we see that it is still tracking lower.

1/2
Meanwhile stocks are getting so unbelievably cheap that someday when this economy
turns around the money to be made will be substantial. Many prior leaders will never
come back and amount to anything, while numerous others will become the next DELL or
CSCO. Many of these will come from the new issue arena while others could be one of
the recent fallen angels.

Maybe Brocade (BRCD) will come back from $20 to be a $100 stock again or Qlogic
(QGLC) will emerge once again to be a $120 stock from where it's at today at $21. After
all QLGC has produced substantial earnings when the economy is on track. I can tell you
that on more than one occasion during the 90's stocks like AOL, CSCO and many others
have had 50% correction and then came back to move up 300 to 500% further. It's just a
matter of time before big gains will be made again. They most certainly will be NASDAQ
stocks.

MODEL PORTFOLIO

The model portfolio remains in cash since the first week in February.

There are no picks today due to Friday's reversal.

Hang in there stock fans. With each passing day we get closer to better times for stocks.

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 2001

Hello out there stock fans. Quiet holiday trading today with most all the major averages
up fractionally. The Semiconductor index (SOX) and its stocks were down the hardest
while many stocks and groups were up slightly. Except for one big down day and one big
up day recently volatility has come down significantly.

This lack of extreme behavior could signal the beginning of the end for this vicious bear
market. Of course this doesn’t mean that some individual stocks won’t continue to get cut
in half on poor earnings, but as a whole, things may be on the mend.

Meanwhile many Biotechs are moving horizontally and some are even moving up
fractionally. The best aspect of this behavior in the Biotechs is that the heavy whipsawing
we saw in this group late last year is no longer evident. Such whipsawing is typically
associated with distribution.

Of course, historically the Biotechs were the leading group to rebound when the V-shaped
bear market ended back in November of 1991, and not the semiconductors as one might
expect. This group might be the logical choice again since most tech companies are still
reporting decelerating earnings and have no clear picture as to future earnings. Let’s look
at a few Biotech stocks with better than average charts and promising bases from which
they could make a move.

First up is a stock that I had as a short here recently. It broke quick and swift but has
since rebuilt it's base. Genzyme General (GENZ) is that stock and it actually has good
earnings. The P/E on this stock is 41 while earnings and revenue growth is half of that. It
must be trading on future prospects.

1/6
Here is a former big winner, which might try to make a comeback should the Biotechs
make a move. No guarantees, but it is starting to move. Human Genome Science is a
stock with which most of us are very familiar. By the way, you can see the original chart of
this big mover in the member login area in the archives. Just type in the tick symbol and a
chart from the summer of 99 will pop up.

2/6
Here is a weekly chart of this stock just for fun. You’ll see two sell points on this big
winner. The first one on the left side is a massive parabolic curve that was broken and the
other is your basic trend line break.

This Biotech is up almost 50% from its lows but no chart pattern as of yet. Volume is
drying up so we may get one before you know it, as volume drying up on a rising stock
can, after a period of time, be the precursor to a stock rolling over.

3/6
Here is a stock that broke through a trend line today on very heavy volume. I’ve had it
here many times. Today this stock broke out of a very steep descending trend line after
weeks of heavy volume distribution. My guess is that this stock will re-test this line and/or
move horizontal for a period of time before further upside progress is made.

4/6
Here’s a little Fuel Cell stock that made some very big moves in the past and could do it
again if this market can stop going down.

Last week I mentioned that I would give a voice chat on trading. I've scheduled this event
for this Thursday at 5:30 p.m. Pacific Standard time. Go to Paltalk.com and download
their software if you are interested. Make sure you turn off any firewalls and any other
internet audio programs on your computer before logging in. Since there should be quite
a number of folks in this room I will take all questions via typing and will respond by voice.
There is only room for 125 people so I suggest getting there early. I will have instructions
how to find the room on Wednesday.

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

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 April 2001

Hello out there stock fans. A very strong and hopefully very important day for us
NASDAQ stock fans today. The NASDAQ for the first time in a long time broke through an
important descending trend line on good volume. Also many leading stocks in the
technology area like Veritas (VRTS), Comverse Technology (CMVT), Juniper Networks
(JNPR) and many others have broken descending trend lines and closed above the all
important 28 day moving average line.

Much of what we are seeing is some short covering while some of today’s action is true
buying as well. Today could also be considered follow through to the big rally last week
that was considered a short covering rally. I’m sure short covering will be a major
component to all rallies going forward and should add to the excitement of any NASDAQ
move. Excitement that is if you're long and not short.

There are so many stocks to look at on the charts today so let’s get to them. First up is a
stock that has gone horizontal like so many others did before they broke down. This one
however did not breakdown even while rumors persisted that this stock would pre
announce thereby making this stock collapse. It didn’t.

1/8
Here is a potential leading stock going forward. I listed this stock here the other day
before it made today’s big move of almost $9 on extremely heavy volume. Here is my
original chart and the buy point was listed at $50. I added the verbiage at the bottom
about the volume only.

Here is the NASDAQ with what should turn out to be a significant break of this powerful
descending trend line and hopefully the end of this Big Foot Bear market.

2/8
Here are some leading indexes that are also breaking heavy resistance lines.

3/8
Here is a leading brokerage stock that seems to have bottomed a while ago.

Here is Microsoft Corp. This stock broke out today with a gap in price and closed near its
high of the day. I had it the other day with a buy point of $57. Today it hit that point and
scooted.

4/8
Here is a stock that is closing above the 28 day moving average line, which is considered
positive.

5/8
Ciena CIEN had a huge day today along with a number of others. It traded near record
volume as this stock reversed course with a vengeance. There is still lots of time for this
stock to rebuild a nice base so I see no hurry to get into this stock yet. However a
crossing on one of this lines in tonight’s chart would be good and a potential buy.

Here is a little stock for those of you into cheaper stocks.

6/8
By the way the DJIA broke above a small resistance area today and it's next major
stopping point is its prior broken long term trend line that has stood in place for 6 years.
I’ll should have that chart tomorrow if I don’t get distracted by the action.

Many other stocks are on the move and many will have a significant amount of short
covering to do. This should help if you’re going long. Here is a list of the main stocks on
my computer screens. I often get requests for this so here they are. MVSN, MU, ONIS,
RIMM, KLAC, NVLS, JNPR, SEBL, GENZ, MERQ, BEAS, HGSI, BRKS, MUSE, AMCC,
NEWP, CHKP, CIEN, IBM, QCOM, CMVT, NVDA.

Write down the list, almost every past strong stock and index has broken out or is about
to break out. What we are seeing should be the start of a long rebuilding process and
hopefully higher stock prices.

The big problem is trying to figure out whether or not to hold stocks in long position
overnight. Bombshells are still going to happen as you can read about MDCC in our
Infocus report today. One way to handle these vicious animals now as a stock, is to buy a
put. This way you will be protected to some degree if one of them gets out of control. The
closer we get to the third Friday in April the cheaper these puts become.

See you folks tomorrow.

Daniel J. Zanger

Chartpattern.com

7/8
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 April 2001

Hello out there stock fans. The markets got a big lift today from an influential chip analyst
at Salomon Smith Barney who said we might have seen the bottom in semiconductors.
However, I must have missed something because I didn’t hear him say things are turning
up. Unless things turn up, momentum investors won’t want to own stocks that continue to
produce flat or lower sequential growth.

At any rate the market went bananas on this news and chip stocks were moving very
well. Even the semiconductor index (SOX) broke through resistance at 527 and quickly
flew to another resistance area. This time it hit the 50 day moving average line where it
has been turned back on a number of occasions including today. We also have that
descending trend line which will continue to push this index down until broken. Let look at
its chart.

I will say this about the chart of the semi’s - it's technically good when a stock or an index
snaps back above a broken support line and stays there for three or more days.
Generally this revalidates the prior trend. The SOX index jumped above this line today as
did most of the semiconductor equipment stocks, which also jumped above their prior
support lines. It's probably just a matter of time before this group breaks out. Stay tuned
and don't touch those stocks, as there will be far safer times to buy these potential
leaders.

1/3
Last night I said I would have a chart of the DJIA with some resistance lines. Here is that
chart and it's still very negative looking. However with another rate cut or some very
positive earnings this index might reverse course.

Today we saw many stocks gap open after a big move yesterday. These big gaps on the
second day of a big move are more often than not exhaustion gaps. This explains why
you saw most stocks move lower and close at or near their lows of the day and not move
up. Only a number of semiconductor stocks held up well and closed halfway between
their highs and lows for the day.

Playing gaps is tough. Only very occasionally can you safely buy the gap at the beginning
of a move and the gap should not be more than $6. Generally I wait 20 to 40 minutes
before buying in the morning and the stock must retrace 50% of the opening gap. After
the 50% retracement or so, I then buy about 60% of what I intended to buy on the first up-
tick as the stock proceeds back up to the high point of the gap. After a few additional days
of horizontal action on this stock, I will then add to my position as the stock begins to
advance again. Never chase a gap up.

After a move of approximately 20% on the NASDAQ I wouldn’t be surprised to see the
NASDAQ bounce around that level for sometime. Make sure you have stops in place just
in case we head back down for a double test. Try not to get caught up in the hype.

Tomorrow I will have our scheduled voice chat at 5:30 p.m. PST as I mentioned in last
night's letter. There is only room for 125 people in the chatroom so I hope that everyone
who wants to be there can be. Remember to turn off all firewalls and RealNetworks on
your computer before logging in.

2/3
Here are some instructions to get you into our chartpattern.com group. Please remember
to type your questions to me and I’ll respond to everyone by voice. Questions must
pertain to technical analysis, buying and selling stocks, sell points or rules, how to spot
trouble and money management.

To access tomorrow's voice chat - first make sure you have successfully installed Paltalk
and established your login account through the website www.paltalk.com. Also, MAKE
SURE YOU HAVE CHECKED YOUR EMAIL FOR THE PALTALK MESSAGE TO
COMPLETE YOUR REGISTRATION. You must open this email to complete registration
to login.

Then, click on the Paltalk icon to sign on and connect to the server. Click "OK" to "Enter
New User Voice Group". Click the "GROUPS" button. Click on "BUSINESS AND
FINANCE". Click on "CHARTPATTERN.COM". Login with the password "cuphandle"
(without the quotes around cuphandle).

Talk to you tomorrow and 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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 April 2001

Hello out there stock fans. A very good day on Thursday of this past week with the
NASDAQ shrugging off a weak opening and moving up throughout the day to close on
the high. The other big cap indexes like the DJIA, OEX and S&P 500 also closed on their
highs of the day as well. This is encouraging since closing on the high of the day normally
suggests follow through on the next trading day. At least in the first part of the morning.

The S&P 500 index is ready to break out from a bottoming formation and the OEX did so
fractionally on Thursday. Meanwhile leading semiconductor equipment stocks are
breaking. This group looks like it may capture the lead as far as groups are concerned.
Let’s get to a few charts. First up the S&P 500 which as you know contains about 30%
technology stocks.

Here are a few semiconductor equipment stocks that are breaking out to my surprise.

1/3
Here is a short list of stocks in this group which are ready to break out as well. NVLS,
AMAT and KLAC. These stocks have the best looking charts, which is suggestive of
leadership. After such a sharp reversal from breaking down, I would like to see a few

2/3
days of rest before they break out of their bases. This may happen and then again it may
not. The technical buy points on these three stocks are as follows. NVLS at $51, KLAC at
$48, and AMAT at $53.

Meanwhile a number of stocks I listed here in the charts recently like CIEN, HGSI, MSFT
and CHKP are making progress from their buy points. A few other stocks need to be
mentioned due to their strong behavior and I would put them into a potential leadership
category as well. These stocks are ONIS, VRTS, JNPR and RIMM. JNPR and RIMM
posted good earnings numbers and the street rewarded these stocks with big volume and
price gains on Thursday.

Here is a list of some stocks with excellent charts and my technical buy points. MERQ at
$51, RIMM at $29, SCIO at $24, SSTI at $8, STOR at $11, BBH at $115, DMPI at $49,
ERTS at $58, EXFO at $32, EXTR at $20, ISSX at $37, KEI at $19, MYGN at $46 and
DMPI at $49.

The last time we saw a spring and summer rally was in 1997. That rally lasted from April
15th to October 7th. In that big rally it was chip and oil stocks which led the way. Could we
be in for a repeat with those same groups and time frame? Or will this rally stall out in a
week or two? Only time will tell so stay tuned.

Soon, if things continue to develop the way they are now, a number of these stocks will
make their way into the model portfolio.

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 16 April 2001

Hello out there stock fans. No follow through today on Friday's close on it's high of the
day even though many stocks tried in vain to turn positive during the day. This usually
suggests that more backing and filling will be required before we see further upside on
the NASDAQ.

After the bell today Cisco Systems (CSCO) may have cemented this into place as it
dropped the bombshell that has been rumored it might deliver before earnings. Today it
announced that revenues for this quarter would decline by 30% from last quarter, which is
far worse than previously expected. Regardless of this being expected, a number of tech
stocks are down in sympathy in after an hours trading, which suggests a lower opening
for tech stocks in the morning.

With a big move in many stocks and the probability of a retrenchment tomorrow there are
no stocks worth mentioning today. Therefore let’s go to a chart of the NASDAQ and see
what it's looking like today.

By the way there are a number of scenarios that could play out on the NASDAQ as far as
retracements are concerned. Retracements could be one of 4 scenarios technically. The
first three are Elliott wave counts of 38,50 and 62% of this run up from its recent low to its
highs, while the last scenario is a double bottom test at or near 1619.

1/2
These numbers could come into play for any recent purchases you might have made and
is by no means a guarantee that a stock will come back should it hit one of these areas.
One always needs to keep some peace of mind and set stops according to your tolerance
of risk and buy points.

I’ll have more tomorrow and hopefully more charts.

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 17 April 2001

Hello out there stock fans. What could have turned out to be a tough day on the heels of
the poor news from Cisco Systems yesterday turned out to be nothing more than a day of
backing and filling or buy the dips again. After a mildly weak opening stocks came back
strong before giving up ground midday. However, by the end of the day stocks began to
pick up steam again closing up $2 to $4.

After the bell today numerous technology stocks began to post numbers that the market
seemed happy about. In after hours trading many stocks are up $2 to $5 on strong
volume. Looks like we might get a lasting summer rally after all. At least tomorrow should
be strong and let’s hope it stays that way for some time to come.

There are numerous stocks to review tonight in the charts and I would also refer to
Maya’s Infocus Report tonight since she has a few earnings reports hot off the press. The
stocks in her report should move well tomorrow.

Let’s get to the charts. First up are three stocks that I’ve mentioned here a number of
times, but this may be the time to get serious about a move. Here are all the charts.

1/4
On this chart of JNPR there are two items of technical importance. First, this stock is
about to break a very long standing trend line and second there is a small cup and handle
formation that this stock is ready to move out of. This stock is already gapping up in after
hours so you might try to wait an hour or so and see if it comes down.

2/4
Here is a past leader that was big years ago and is just now coming back. IGT is in the
very strong gaming group.

3/4
Here are some potential movers for tomorrow and I believe most of these will be moving
very well. CHKP at $65, NVDA at $73, CIEN at $55, QCOM at $52, QQQ’s at $42.35,
MTON at $34, AMCC at $21, ADBE at $42, AMD at $25, BRCM at $33, CCMP at $56,
EMLX at $22, FCEL at $53, CMVT at $65, MUSE at $42, NEWP at $34,

The stock comment section of this web site has been basically dormant since the market
top in March of last year. Starting tomorrow I will add a few stocks with my original buy
points. There will be two to three updates per week as long as stocks continue making
higher highs.

I’ll see you tomorrow.

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.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 April 2001

Hello out there stock fans. An explosive day for all markets today as the Fed once again
gave us a surprise 50 basis point interest rate cut. This was icing on the cake as stocks
were already moving up very well with some breaking out of nice formations. Many stocks
had large breakaway gaps at the open and never looked back. This kind of power can go
a long way in the markets.

After such massive gains of $5 to $15 per stock intraday and fearing earnings warnings
after the bell, a descent sell off took place during the last hour of trading as traders locked
in profits. These fears were just that, and after the bell numerous stocks posted better
than expected earnings or were in line with expectations. This propelled stocks higher
once again in after hours trading.

Last week I wrote that most of the leading indexes were breaking descending trend lines
and essentially breaking out. From brokers to software to charts of the leading group
indexes including the NASDAQ, they were all indicating a turn up. It pays to judge the
market by its actions in the charts and not to let your thinking or desires get in the way.

As you can imagine most stocks left the starting gate from their consolidation areas today
and are extended in price by quite a bit. Therefore I have no stock selections tonight
since I brought them to your attention last night. Fortunately most of them rocketed up
today. CHKP, CIEN, JNPR QCOM, NVLS, KLAC, AMAT, QQQ’s and many others shot up
from $5 to $15 each.

In time more stocks will set up quality base formations or pivot points from which to buy
and I’ll have them here as usual. Meanwhile let’s get to some charts of the major indexes.
First up is the S&P 500 and then on to the DJIA and the NASDAQ. All have very positive
things going on as you can imagine.

1/4
On this chart of the DJIA, today’s move needs to stay in place to revalidate this for at
least three days if not more.

2/4
Here is a recent IPO breaking out on fair volume. Riverstone Networks is it's name and
had the market not been so bad for IPO’s this stock could have opened much higher.

See you on Sunday.

Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 April 2001

Hello out there stock fans. A very powerful week for the stock market with Technology
stocks benefiting the most. The NASDAQ posted one of the most impressive percentage
gains that I can remember by rising more than 500 points in just over a week.

What’s even more impressive is that many stocks have more than doubled in price in just
two weeks. Stocks like ONIS, PMCS, CHKP, BRCD, QLGC, CIEN, OPWV and a number
of others have rocketed out of the starting gate and left no doubt as to the power of this
rally. This illustrates that one should never turn away from the market in the belief that the
market will not stage a come back for some given period of time. Some the biggest gains
to be made in the market are at the earliest stages of a new Bull market. You miss the
start and you get left in the dust.

Of course we are in the middle of earnings season and many companies are reporting
that this past quarter was terrible. They see further erosion of revenues and profits for the
next one to two quarters. Many other companies are reporting similar past quarter
performances but add that they see light at the end of the tunnel. Either their business
has stopped declining or they're even experiencing a slight pick up in orders. It’s the latter
situation that should keep this market going. This is very unlike last January when not one
company could see light at the end of the tunnel.

Meanwhile the NASDAQ has hit a long term descending trend line that dates back to the
double top in early September. Certainly this will be a formidable resistance area that
could pose trouble for some time. The bigger question is will the NASDAQ retest it's prior
lows before breaking through. I personally doubt this will happen. I would however think a
5% to 10% retracement of this up move is very possible and a small correction could get
underway this week. Now on to some overall market charts which are very suggestive of
a market that needs a pause to refresh before moving higher over time

Here is the NASDAQ weekly chart, which as you know is a daily chart compressed to a
weekly format.

1/4
Here is the S&P 500 on a daily chart and it looks like it’s in an area of resistance. This
means a rest maybe in order now.

2/4
Here is a chart of another big mover in this up move and it’s up against a big descending
trend line just like we see for the NASDAQ and many other stocks. Ciena is the name of
the company and this stock is quite possibly one of the market leaders in this potential
Bull market.

Right now the vast majority of stocks are extremely extended and are very prone to
reversing course. As a result there are no stocks to show in the charts other than stocks
that are far too extended. It could be prudent to consider taking some chips off the table
right now until we see much more consolidation. After a period of consolidation and a
break of the NASDAQ’S 7 month long descending trend line there should be plenty of
stocks ready to move into the model portfolio.

Tomorrow Monday there is a good chance that there will be NO NEWSLETTER from me
as I have some personal items to take care of. I will be back on Tuesday. Thanks for
understanding.

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 24 April 2001

Hello out there stock fans. A gap down with follow through on Monday bruising many
stocks that have had big runs over the past two weeks. Today’s early trading provided a
minor reprieve with stocks up slightly but certainly didn't make up the losses of yesterday.
At midday stocks started to act like bears were after them once again, eventually finishing
the day with slight losses on fair volume. Bear trap behavior was once again evident in
the market. Strong mornings followed by mid day sell offs and lower closing prices.

After such big gains it would be healthy for stocks to move horizontal or see 30 to 50%
retracements before making another surge up. We could possibly expect this to happen
over a number of weeks. This would give us very strong charts from which to buy with
confidence.

Of course, there is one caveat. Only if companies see healthy earnings on the horizon or
the market senses an immediate upswing in business activity can we expect those strong
charts. If not, we’ve probably just experienced a trading/short-covering rally at best. One
of the more encouraging signs can be seen in the Semiconductor equipment stocks,
which have firmly broken out of their bases. Though they came dangerously close to
returning to those bases today, this is still one of the most promising signs to date and a
first in the technology sector in over 9 months. However they must hold above their recent
trend lines. A break below these trendlines would be very negative, not only for these
stocks, but for Tech in general. See my comments in the stock comment section of the
web site on these and more.

Right now most stocks are vulnerable to a selloff due to their recent ascent to very lofty
levels. The exceptions are largely in the Semiconductor Equipment group. Risk is firmly
on the downside until more chart work is accomplished. And lets face it folks, May is one
of the worst performing months of the year, even worse in terms of % return than dreaded
October.

Now on to some charts and lets see the story they are telling right now. First up is the
NASDAQ then on to the SOX index and then two leading technology stocks.

1/4
2/4
All in all stocks that have doubled in two weeks time are still in need of corrective work
which will take time. Soon some of these stocks should hold their ground and start to turn.
After all, there is another Fed meeting in just two weeks time. Anyone shorting stocks

3/4
knows the danger of a short squeeze should there be a Fed rate cut. As we get closer to
this Fed meeting in May, expect to see shorts running for cover once again. This should
help to support this market. Watch as we get closer to May 15th.

Hang in there and hope for strong charts.

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 April 2001

Hello out there stock fans. The NASDAQ found new life today after a minor 10%
correction from its most recent highs of 2202 when it turned up after hitting the 2000 level
today. Stocks drifted lower from the open but found few sellers during the morning. By
mid day buyers arrived and a minor rally was underway pushing up stocks of all kinds $2
to $6 until just the last 15 minutes of the day. Those fearful of holding stocks overnight
sold and stocks sank 1 to 2 points in the last few minutes of the day.

All in all it was a fair day and charts continue to progress and rebuild with numerous
charts looking very good by the end of trading today. By the look of many of these charts
we should have an up day tomorrow. As is more often the case these days, stocks just
aren’t resting long enough to let proper charts come to fruition. Once the market goes into
buy mode it's pedal to the metal and don’t stop. However I have dug up a chart or two of
some patterns to look at tonight and there are lots of picks for the active trader on real
time.

I like the action on this stock and the earnings were super. In fact I will add 500 shares to
the model portfolio at $41 or as close to this if the stock gaps up tomorrow. I will not pay
more than $43.

1/3
Here is an updated chart of the S&P 500.

Here are the picks for the active trader on real time. CMVT at $71, BRCM at $39, BRCD
at $36.50, DIGL at $40, DPMI at $55, IBM at $116, HGSI at $57, NETE at $37, NEWP at
$41, OPWV at $34, PMCS at $40, QLGC at $41, CLS at $47, GS at $94, RTEC at $50,

2/3
SEBL at $43, and VRTS at $61,

Most of the stocks listed here tonight are the best stocks in the market right now and most
all of them are worthy of big moves tomorrow and over time.

MODEL PORTFOLIO

Tomorrow I will add 500 shares of DIGL to the model portfolio. I will also add 500 shares
of BRCD at $36.50 or as close to this price and pay no more than $38 for BRCD. These
two purchases represent about 30% of the total purchasing power of the model portfolio.
Stops on this stock after they have hit my buy points will be $32 for BRCD and $36 for
DIGL.

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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 29 April 2001

Hello out there stock fans. A very strong opening on Thursday which was met by waves
of heavy selling. Later that same day, stocks nosedived with many issues that were
positive for the day turning negative by the end of the day. Friday was a little better with a
stronger close at the end of the day with stocks posting slight gains on light volume.

Many stocks are starting to have nice horizontal formations. These formations, should
they continue to hold would give us some of the best charts we’ve seen in a very long
time. Many of these horizontal formations are tight with point variations being minimal.
The last time we saw strong tight charts was in October 1999 just at the start of the
parabolic curve blast off start. Yes there were a few good charts in December 1999 and
the first of January 2000 but since then what few good charts we’ve seen have been
choppy looking.

I’m by no means implying we are going to go parabolic or close to it. But we should be
able to get some decent gains on some selected issues going forward. It looks like May
this year could turn out to be like May of 1997 which was one of the better May months
that I can remember. However, the stocks and their charts must continue to hold with
higher highs like we are seeing now and not break down like in January of this year.

Now on to some of the better-looking chart patterns. By the way the strongest groups
right now are the Biotechs, Healthcare, Brokerage and Oil stocks. As inventories are
reduced in the tech sector and the economy strengthens, I expect the tech group to come
on strong once again. Right now its holding fairly well considering its most recent
advances.

1/7
2/7
3/7
4/7
5/7
In trading on Friday, Wednesday’s stock selection that was ready to come out of a Cup
and Handle formation was IRF. On Friday it leaped out of that formation by tacking on $5
on heavy volume. This is a very good sign that should induce further highs for this stock.

6/7
I have updated the Stock Comment Section of this web site. This is where I update up to
20 of the better acting stocks that I’ve highlighted here in the charts. As long as those
stocks continue to act right and produce positive looking charts and gains they will
continue to be undated. There you can also find new buy points that I find as they come
up during the week on those stocks. If you don’t see a stock in there that I’ve highlighted
in the charts, it is because I feel its not acting right or producing the gains I feel it should.
During the week I will add HGSI, FCEL, GENZ and IRF to this list with my original buy
points. This link will take you there. https://chartpattern.com/cf/login.cfm

MODEL PORTFOLIO STOCKS

The model portfolio stocks BRCD and DIGL both tried to move out of their small
consolidation areas and both were turned back with the rest of the tech sector in
Thursday’s tech sell off. Both however are holding their ground well. DIGL’s chart pattern
can be an explosive one as we have seen here before in several stocks. This stock will
need a bit time however. BRCD as you can see by today’s chart is holding well and is
ready to move out soon. Stops remain the same on both of these stocks.

By the way, in last Sunday’s letter I mentioned that we would get a 5 to 10% correction
starting this past week and a 10% correction is exactly what we got. Hopefully we can
move forward from here.

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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 30 April 2001

Hello out there stock fans. A surprise morning gap opening today with stocks moving up
slightly after the gap. After a brief sprint to higher ground many stocks gave back 30 to
50% of their early gains on reduced trade. What is important is that as of right now they
are holding constructive patterns.

I suspect this is just the opening leg up as the first sprint up creates the first structural
component of strong chart patterns. After sufficient rest for many of these, stocks should
move much higher. Meanwhile a number of stocks are trying to turn the corner to move
higher now.

Lets see some charts of stocks that are ready to move higher and some that are building
nice charts and should move higher in time. First up is a new addition to the model
portfolio.

Pixelworks (PWXL) is a small chip company that produces system-on-a-chip products for
visual display of broadband content. Revenues for the last quarter were up 202% and
earnings were up 188% to 7 cents. There are only 36 million shares outstanding on this
company and close to 14 million that float. The chart pattern says this stock wants to
move higher and as a result I want to own this stock. Buy point is at $23 to $25. I will pay
no more than $25 and the stock must trade on the ask side at no more than $25. It will
not go into the portfolio unless it trades at or below $25 during the day. I will add 500
shares to the model. Stops are at $20 after a buy point is hit.

1/3
This stock here is moving up sharply and is in big demand as you can see by its price
action and the massive volume as the stock moves up.

This stock is trying to base and is one of the better looking bases going right now. In a
few more weeks it should be ready to move.

2/3
Here are some potential moves for the active trader. CCMP at $65, NEWP at $41, PLUG
at $20.50, RIMM at $34, CIEN at $56, and ONIS at $37.

MODEL PORTFOLIO

Right now there are two stocks in the model portfolio. BRCD and DIGL. Both are doing
fine as of now. Tomorrow I hope to add 500 shares of PXLW to this list.

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 1 May 2001

Hello out there stock fans. Watching paint dry on a cool day is how I would classify
today’s early market action. That was until mid day when people realized that no one
wanted to be a seller and stocks took off. Today was a good gauge to see if anyone
wanted to sell stock in a slow market. Had this been a bear market sellers would have
dominated and stocks would have moved lower quickly. The tide has changed now since
no one wants to sell stocks in a slow market. This is bullish behavior in my opinion.

This is now a big problem for those in short position. They are trapped and facing an
upcoming Fed meeting in just a few weeks. As I mentioned before this will also provide
fuel for this market.

Today in the model portfolio PXLW gapped up by a hair and hung around the $24 area for
most of the day with minor moves lower until trading picked up later in the day. The stock
closed near its high for the day at around $25 on a near record spike in volume. This
stock is showing excellent signs of accumulation and should hit $30 soon. I put this stock
into the model portfolio at $24 since it traded at this price or lower most of the morning.

The other two stocks in the model portfolio are Brocade Comm. BRCD and Digital
Lightwave DIGL. BRCD is moving up strongly with large amounts of buying and moving
out of the wedge formation with good power. DIGL on the other hand is acting a bit
sluggish right now but the chart says to me that this stock will go higher with a little more
rest.

Tomorrow I will add Veritas (VRTS) to the model portfolio. It progressed more than I
expected today and may not stop to let anyone in unless I go right away. I will add 500
shares to the model portfolio at $66 to $69. It must trade on the ask no higher than $69 at
some point during the day tomorrow.

Here are a few charts of our model stocks.

1/5
Here is the VRTS chart. Yes I know the stock is near the upper trading band which I
excluded here tonight, but so are many stocks. This shows how powerful the need is to
own stocks right now.

2/5
Here’s another stock ready to move up with a strong looking chart.

3/5
This chart is very unusual but illustrates how the percent change in a stock's volume is
one of the major things to look for when selecting a stock.

The few picks for the active trader are CHKP at $66, NEWP at $41, TMPW at $51.50,
VRSN at $53, CIEN at $59, EXTR at $33, GENZ at $111 and the BBH at $128.

4/5
Hot sectors today were the Internet stocks and Video gaming stocks. In the Internet
sector it was CMGI, SFE, YHOO, PCLN and BVSN moving well considering how cheap
they are now. In the gaming sector look at ERTS, TTWO, THQI and ERTS.

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.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 May 2001

Hello out there stock fans. A very strong opening today with stocks gapping up and
moving higher on heavy volume. One of the star performers today was our own model
stock Brocade (BRCD) which gapped open $4 on heavy Instinet volume before the
opening bell. It then proceeded to run another $3 to almost $51 as volume swelled to
near record levels of over 39 million shares for the day.

Many other stocks I‘ve listed here in the past week ballooned in price today with volume
matching their big price gains. NTAP, BRCM and MCDT ran hard on heavy volume today
as they shot out of their respective bases that I showed just the other day. Let’s recap
those charts. As usual I have left my original verbiage intact and added some comments
at the bottom.

1/5
Here is a chart of the NASDAQ. Today’s action puts this index over the upper trading
band where it usually doesn’t stay for very long. At the same time it's showing us the
power in this market as it muscles above this line. One of the more positive things to
come out of this is that trading bands are turning up.

2/5
Here is a network stock that I had listed here the other day, but stalled out like so many
others did on Thursday of last week. However today was a magic day for this stock as it
cleared its base and broke into all time new highs on near record volume. Since it’s a
recent IPO, I left out the first few trading days of higher volume in my assessment of the
volume.

This is one of the only tech stocks now trading at all time new highs. This means that
there are no losers in this stock waiting to sell which could suppress the movement of this
stock. Riverstone Networks (RSTN) is its name.

3/5
Of course there were some big winners from last nights Active Traders section. When the
market is in 'go mode' this can be a very fruitful area to harvest winners. Here’s what
some of last night picks did today. TMPW up over $6 on double daily average volume,
VRSN up almost $7 on expanding volume. CCMP up over $6 on good volume, CHKP up
over $4 on good volume.

MODEL PORTFOLIO

In the model portfolio today Veritas (VRTS) made a very strong move out of its
consolidation area on good volume. The stock closed near its high for the day, which is
positive when volume expands as we saw today. I added 500 shares of VRTS near the
open at $68. I did this because it traded there and lower for sometime before moving
higher.

Other model stocks are looking good too like PXLW and DIGL. The charts are excellent
on these but they may need a bit more time before moving higher. Soon there will be a
few more stocks going into the model portfolio. I hope to have a total of six stocks in there
soon.

Until more stocks show some set ups there are no stocks to list tonight.

I will see you on Sunday.

Daniel J. Zanger

Chartpattern.com

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 May 2001

Hello out there stock fans. A very brief update tonight on the NASDAQ and the model
stocks. The NASDAQ gapped down hard today and now sits on a rising trend line that
could be broken tomorrow. No telling what will happen when this line is broken. We could
see hard selling or very little selling. With another rate cut predicted this May 15th when
the Feds meet I find it hard to see a lot of selling taking place. On the other hand many
stocks have doubled in price and are still near their new highs like MERQ and could start
basing from here.

Like the NASDAQ, many of these stocks are sitting on a rising trend line such as MERQ
and could easily cascade lower once breaking their lines. Therefore one must be
prepared for the worst and set stops accordingly. For the MODEL PORTFOLIO stocks,
stops will be as follows. DIGL at $39, BRCD at $38, VRTS at $64, PLXW at $21.

Again the NASDAQ will probably break this line, however I hope that if it does, we do not
fill that gap that I’ve shown here around the 2000 area.

See you Sunday.

Daniel J. Zanger

Chartpattern.com

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 6 May 2001

Hello out there stock fans. On Friday the NASDAQ gapped down at the open on worse
than expected employment news thereby breaking a rising trend line. Just a month or so
ago a break of any trend line on any stock or index meant a crushing drop in prices with
no recovery for quite some time.

Friday's rebound after this break of the trend line is a welcome sight and should go a long
ways to restoring confidence in many traders. We also see that for the first time in a long
time that dip buying is making a comeback with some success.

Also good too is that horizontal bases are now appearing on many technology stocks
which is suggestive of accumulation taking place and potentially higher prices. In just a
little while, full and complete bases of 6 weeks or more will be very apparent on many
stocks like SNPS listed below. Lets look at some of these constructive patterns that are in
the building phase.

1/4
Here is a very nice Cup and Handle formation on a stock that acts fair.

2/4
This stock has a rising channel, which could explode upwards at anytime.

Lets take a look at the NASDAQ once again and this time we find that it broke though its
descending trend line 5 days ago and on Friday retested that line which held. This is very
constructive.

3/4
MODEL PORTFOLIO

On Friday DIGL hit my stop of $39 and got checked out of the model portfolio. This stock
should go higher in time, but probably needs more time in its base. This leaves BRCD,
PXLW and VRTS in the model portfolio. Hopefully by tomorrow there should be one other
stock added.

See you on Monday. By the way next Sunday there will be no letter due to my seminar on
Saturday.

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 7 May 2001

Hello out there stock fans. A real yawner today with stocks finding few buyers to push
them up throughout the day. Most high tech stocks traded anywhere from 50 to 80% of
their daily average volume and sold off during the day. It would also appear by today’s
action that the market is possibly on hold waiting to hear from CSCO on its forecast of the
future when it releases earnings tomorrow after the bell.

Meanwhile lets get to some charts that are looking fair. First up is the S&P 500. Even
though this major index has had a big run it appears that it could easily be ready to
advance further. This is in spite of the MACD which looks ready to cross over and signal
that momentum is weakening. If it does this index along with most stocks could send a
sell signal to the market.

Here are a few fair looking charts. They are not as strong as I like to see but then again
you never know until they try to move out from their charts patterns. Newport looks best
right now out of the three of these.

1/4
2/4
Let’s take a quick peak at the NASDAQ and what may be shaping into a small Cup and
Handle formation.

MODEL PORTFOLIO

3/4
The model stocks of BRCD, VRTS and PXLW are hanging in there but its time to raise a
stop for BRCD. New stop on BRCD is $41. $64 on VRTS and $21 on PXLW.

The active trader section is a little dry right now until more charts set up. Hopefully we
should see some tomorrow.

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 8 May 2001

Hello out there stock fans. Volume on many leading stocks continues to diminish, as they
seemingly stay suspended in mid air. Today with this reduced volume however stocks
finished somewhat mixed with a decent bias to the upside late in the day. All this is good
news because horizontal work is much needed on most stocks right now due to their
massive runs garnered during April.

Many stocks that have had big runs could use a well deserved rest even though they may
not stop, while numerous other stocks have been resting and consolidating earlier gains.
Due to this consolidation time I have many stocks to list tonight in the charts. Let’s get to
them!

1/7
2/7
3/7
For those of you with chart programs, here is a list of additional stocks that with more time
or good news could break out of consolidated areas. VTSS, ELNT, IDCC, A, NETE,
PMCS, RIMM, SUNW, TLGD, NTAP, SFA and OPWV.

MODEL PORTFOLIO

Tomorrow I will add 1000 shares of Newport Corp to the model portfolio. (NEWP) as it
leaves it's base between $44 and $47. Hopefully news on CSCO will push this stock
down at the open where I can add it at the lower price. I will also add 600 shares of
Mcdata (MCDT) at between $35 and $37.50 as it leaves its bases that you see here.

4/7
Today we saw model stock Pixelworks (PXLW) move up sharply on good news from a
competitor. The chart on this stock is excellent. This stock is extending its gains from the
formation where we bought it, an ideal situation. See archives in the member login area
for the original chart. https://chartpattern.com/cf/login.cfm

Tonight I have a chart of another model stock Brocade Comm.(BRCD) This chart looks
very impressive to me and as soon as the NASDAQ can break out above the 2210 point
approximately, this stock like many others should extend in price. Earnings are due out
next week on this stock.

5/7
Veritas (VRTS) is hanging around the $66 area and looks like it may need more time.
Today the stock hit $64.50 or close to it but not $64, which is my stop. This stock is still in
the model portfolio. By the way all of the storage stocks seemed to hit a wall and stall the
other day. These include BRCD, NTAP, MCDT, EMC and VRTS. I expect them to get
underway soon.

There are some very good selections for the active trader today and I expect many of
these stocks to work out very well. The price is my technical buy point. Volume on each
stock must pick up after it hits the buy point and the market as a whole needs to be
positive too. CHKP $68, DIGL at $42, EXTR at $35, MCDT at $36, MSFT at $73, NETE
at $38, NATP at $28, NTIQ at $35 OPWV at $39 and PDLI at $66.

I’ll see you tomorrow and remember no newsletter this weekend as I will be giving my
seminar on Saturday and traveling 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

6/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 9 May 2001

Hello out there stock fans. A hard gap down at the opening today with most technology
stocks getting beaten up pretty good for the first hour of the day. Volume along with
selling pressure began to dry up at the end of the first hour with stocks down $2 to $3 at
this time. This didn’t last long however as stocks staged a smart rebound that lasted for
about 1 hour before stocks sold off once again. A gap down opening with a small rally up,
only to have stocks close at or near their lows of the day. Not the best thing to see.

Meanwhile model stock Pixelworks (PXLW) bolted higher today on near record trade,
spiking its way up above its upper trading band while being up as much as $4 intraday.
This is almost a 50% move on this stock in just one week. This stock and Genesis
Microchip (GNSS) are involved in flat panel screen displays which seems to be a rather
hot field these days as prices for these products are coming way down. Here is a chart of
PXLW.

Today I added Newport Corp to the model at $44, the lower end of my target, as the
market was weak at the open due to CSCO’s earnings. The chart pattern and action on
this stock is good, only we need a little more positive market. I also added Mcdata
(MCDT) when it scooted up midday at $36. This stock pattern is very nice and hopefully
soon this stock will move higher. The model portfolio now has PXLW, BRCD, MCDT,
NEWP and VRTS.

1/3
New stops are VRTS at $63 as the chart is excellent and volume is drying up as the stock
moves horizontal. NEWP at $40, MCDT at $32, BRCD at $41, and PXLW at $26. By the
way if you own PXLW some 20 to 30% profits should have been taken today as this stock
is far above the 30% up from its base. I don’t do it in the model due to our data base
constants.

Many stocks right now along with the major indexes are at or very near their resistance
lines. Also all of these stocks and indexes have their MACD at their tops and look like
they are ready to roll over. This would be very damaging to most stocks of course. It could
be that the market is waiting for the rate cuts next week to sell stocks into the news. After
all what will be next after this rate cut? For one, earning warnings are next. Therefore one
needs to be fleet of foot just in case things get out of hand. Lets see a chart of the
NASDAQ.

Due to the market action today there are no daily picks or other charts. Last night's active
traders picks are still good with those buy points. Of course, this holds true only if the
market is positive tomorrow.

Due to the seminar I will be giving in LA this weekend, I will not have a newsletter this
Sunday. Soon too, I will be taking a long promised vacation since my last one was over
15 months ago. I will see you folks on Monday of next week.

Daniel J. Zanger

Chartpattern.com

2/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 14 May 2001

Hello out there stock fans. Another lackluster day with volume figures on most stocks
50% of normal daily average volume. Bidders are waiting for the outcome of tomorrow's
FMOC meeting to see if the Fed will reduce rates the anticipated 50 basis points before
they commit money to owning stocks. Meanwhile portfolios are being reduced at the rate
of about 1 point per day per stock as this bidder's strike continues.

Let’s take a look at some charts and see what's going on in the major indexes. First up is
the S&P 500 and then on to the NASDAQ. Both of these charts are setting up to move
higher and look very bullish. However it's up to the Fed.’s tomorrow to have them stay this
way. Anything less than a 50 basis point cut and this market could have a hard shake for
days to come.

1/5
Here are a few other stocks to look at. IMCL looks good but really needs more time.
MERQ and VRSN look good and if the fed cuts interest rates by 50 basis point these
stocks like many others could rally 3 to 6 points tomorrow. However be careful chasing
them after they move up because they could turn and sell off. The reason is that these
stocks have all had big runs and need much more time to consolidate their gains.

2/5
3/5
MODEL PORTFOLIO

The model portfolio fell victim to this bidder's strike and these stocks dropped the same
amount as most stocks in the market. I feel confident that all of them will be back soon
and who knows I might have to add them again at sometime.

Well folks the big question is will a 50 basis point cut move the market for days and
weeks to come or will it rally and then roll over and move horizontal in a trading range for
many weeks or months to come. I guess the best gauge will be if the major indexes break
above the resistance lines that I have for you tonight. If we rally up to the lines and then
stall out I think you’ll have your answer. If we break over this lines on a spike in volume
then we should be ready to move much higher over the next few weeks.

There are no meaningful set ups tonight to list in the active traders section but I do expect
most all of the stocks will move well if the Fed cuts tomorrow.

See you tomorrow.

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 15 May 2001

Hello out there stock fans. Resolution of the long wait over interest rates ended today as
the Fed finally did what was expected by lowering rates 50 basis points. This however
was factored into stock prices prior to today as I mentioned last week and after a brief
rally the market went back to sleep. Lets hope it's not going to vacation all summer long,
but then again this would create the best-looking and strongest charts if it does.

Until the markets break above those resistance lines that I showed you last night, this
market is just going to move in a trading range. Its nothing more than a waiting game at
this point. Back in the summer of 1999 the market basically did 6 months of backing and
filling creating a very nice horizontal pattern before the big lift off of the speculative
bubble. Strong bases lead to very high stock prices and I would really like to see strong
bases again. The longer the initial base the longer the movement in stocks can be.

This does not prevent minor moves that can occur until then and I think that’s what we will
be doing until such time. Here is one possible stock that I would consider to short if it can
touch its most recently broken trend line.

Unfortunately there are no other meaningful charts to show as stocks turned down at the
close suggesting we could see another weak day tomorrow. Had they closed up today I
would have had a half a dozen charts to highlight.

1/2
Hopefully tomorrow there will be more charts. For right now stocks are resting, creating
what could turn out to be fine bases. For now resistance on the NASDAQ is about 2230
and short term support is 2060.

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.

2/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 May 2001

Hello out there stock fans. A negative start for the NASDAQ today that was quickly
erased as stocks moved higher after a fast start by the Dow Jones Industrials. The DJIA
moved sharply higher breaking through resistance on a descending trend line at 11,000.
This suggests we are set to move much higher shortly. Another positive was the high
volume on today’s big price spike at the breakthrough. This shows conviction, always an
important factor when you break through a major trend line as we saw today.

The S&P 500 also broke out of its small consolidation today and cleared the 1270 mark.
This index closed at 1287 with a close near its highs for the day. This suggests that higher
highs are more likely tomorrow.

The NASDAQ on the other hand progressed slowly but steadily throughout the day.
Tomorrow, this index could easily break through the resistance it has bumped up against
more than once recently. This resistance point is at approximately 2229. Here are the
charts on all three indexes with the DJIA in a compressed weekly format.

1/4
Last night I mentioned there were no charts to show due to the downturn from the end of
the day action we saw yesterday. All that changed today. Those charts are ready and
some are even extended too far now to list tonight. Technically we needed just one up
day for these charts to show themselves and I wish timing wise that day had been
yesterday. But here they are nonetheless.

2/4
3/4
Here are some very good-looking stocks for the active trader. Of course the market must
be positive and so must the volume and price action on these stocks. SEBL at $48, SFA
at $61, TMPW at $55, VRTS at $69, BEAS at $38, ELNT at $33.25, EMLX at $43, EXTR
at $34, GS at $100, LEH at $79, HLIT at $8.60, HGSI at $62, JNPR at $58, LRCX at $32,
MCDT at $35, MYGN at $60 and NEWP at $39.

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 May 2001

Hello out there stock fans. Quiet trading on Thursday and Friday of this past week as the
NASDAQ continues to trade in a tight trading range looking for news and or more time
before it will break out.

Meanwhile three groups are poking their noses out into the lead. Finding the leading
groups at the turn of the market off its most recent bottom is key to finding the big winners
in the market and thereby the big returns in ones portfolio. So far the three groups that
are doing best are the alternative energy stocks with Fuel Cell (FCEL) out in front by a
long shot, Followed by the Biotech’s and then Storage stocks.

FCEL was a stock I had in the charts for you to look at and consider back in April at $49
as it broke out of its base. You can see the original chart in the member login area of this
web site in the archive section. Just type in FCEL and see the letter dated April 9th. Other
stocks in this group are BLDP, PRTN, ESLR, CPST, PLUG, APWR and ENER just to
name a few.

http://chartpattern.com/cf/login.cfm

Biotech’s are another group that are moving up and performing well. In this group
leadership stocks are basically the same crowd as last year. Human Genome Sciences
(HGSI) is a stock that is making new move highs on a regular basis. Other Biotech’s that
are looking good and hitting new highs on this move are PDLI, CIMA, DRMD, MYGN,
IDPH, FHRX, KOSP, GENI, and IMCL just to name a few of the better movers.

In the tech area it seems that storage stocks are the best right now. A number of the
Semiconductor Equipment stocks are starting to pick up some steam thanks to comments
made by Applied Materials on its release of earnings. In the storage area VRTS and
QLGC move best and most consistent with others like BRCD, MCDT, EMC, EMLX doing
fine too. In the Semiconductor Equipment arena, which is not moving that great yet but in
time will, the better acting stocks are RTEC, CCMP, AMAT, KLAC and NVLS.

Outside these groups there are a number of other stocks that are acting well and these
are, HLIT, GNSS, PXLW, OPWV, RFMD, IRF, CLS, SEBL NVDA, MERQ, VRSN and
ISSX.

The big question is when will the NASDAQ like other major indexes break out of its
trading range. Here is a chart of the NASDAQ

1/4
Here are a few charts that look very nice even though the stocks have left the starting
gate.

2/4
Here are some stocks to look at for the active trader. The price is my technical buy point if
the market is in positive mode tomorrow and volume on these stocks is above average by
the end of the day.. PEGS at $12.25, RFMD at $35, SEBL at $50, SFA at $61, SLXP at
$20, TARO at $60, COLM at $71, TMAV at $19, AMAT at $55, ARXX at $16, CLS at $57
and ELNT at $34.

There are sure to be many other charts ready to go on Monday Tuesday and Wednesday
by the look of them today.

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

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 21 May 2001

Hello out there stock fans. A slow opening today with a slight bias to the upside until the
NASDAQ traded over the resistance line and hit 2229. At this point the market started to
lift quite well with many groups and leading stocks moving ahead nicely.

Many of the stocks listed in the leadership groups last night moved very well today. Qlogic
(QLGC) and Veritas (VRTS) each moved up about $7 on expanding volume. Biotech’s
were the most active group with Human Genome Sciences (HGSI) up another $5 and
Celera (CRA) moving up sharply out of a big cup and handle formation to tack on over $7.

There were also quite a few winners from the active trader section with stocks like CLS
moving up over $7 and SEBL moving up over $5. Then there was a stock mentioned here
a number of times at $16, Riverstone Networks (RSTN) and it moved up over $4.50 to
close the day at $23.50 on heavy volume.

Today’s rally as nice as it was took the NASDAQ outside its trading bands once again. As
we’ve seen before it just doesn’t stay there that long. Usually no more than a few days.
Going outside the bands is necessary though as it’s the only way to get them to turn up
and get out of the way for future big moves.

1/6
I mentioned yesterday that in a day or two there would be plenty of charts to show as I
thought this rally was going to get underway on Tuesday or Wednesday. However as
usual the market just couldn’t wait. There are still a number of stocks with good-looking
chart patterns so let’s get to them. The first three made big moves today and were listed
for you in last night’s letter. They are not that extended though and look good on any pull
back.

2/6
This one has had a tough time as have all the Networkers. However you never know until
it pops it's head out and tries to run.

3/6
4/6
5/6
Had the market not made such a big move today there would’ve been more stocks to list
tonight. However these should keep everyone busy tomorrow.

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.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 22 May 2001

Hello out there stock fans. Little if any follow through today, which is similar behavior
exhibited by the Dow Jones industrials when it broke out from resistance last week. The
Dow has yet to make any meaningful progress after it broke out and it could be that the
NASDAQ will do the same for some period of time. Stay tuned.

As long as the resistance line that we just broke out from at 2228 holds, which I suspect it
will, most of what we should be seeing is just normal backing and filling before any next
leg up in stocks.

Meanwhile selective stocks moved very well today. Ciena (CIEN) a chart selection from
last nights letter, had good news from AT&T this morning and gapped open $3. It moved
ahead to close the day up $3.50 on heavy volume breaking out of a wedge formation. I
will say that the finish on this stock today, as well as many others, was poor. This
suggests that these stocks need more time.

OpenWave Technology (OPWV) gapped open a few points and motored ahead to close
the day up over $3.75 on very heavy volume. Meanwhile the big cap brokerages moved
ahead a few points with Goldman Sach’s (GS) and Dean Witter (MWD) and Lehman
Bros. (LEH) moving ahead almost $2 points each.

Most stocks and their charts need more time after yesterday's big gains to set up or
consolidate again. This of course leaves me with no charts worthy of showing you tonight.
I’ve pretty much shown all there is in the way of movers over the past 4 to 5 days.

One thing I would like to add before closing. If there is a slight increase in the Book to Bill
ratio when it is released, this will help all sectors of tech especially the chip and chip
equipment stocks. Keep an eye on that number as chip stocks could rally nicely if that
number shows an increase over last month’s number.

Hopefully I will have some more picks 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 23 May 2001

Hello out there stock fans. The worst Book to Bill ratio for Semiconductor chips in ten
years moved chip stocks in a big way. The downside move affected all tech stocks
including the Biotechs. Most stocks are still far above support areas at this time, however
the NASDAQ closed on its low of the day just above the support area at 2228. Another
day like today and we will have broken support. This would suggest we need much more
time to rest before another leg up occurs.

Let’s face it folks after 6 straight days of the NASDAQ going up it deserves a rest. A minor
pull back of 1 to 3 days is normal as long as support areas hold on the indexes and on
individual stocks. I suspect we will need at least one more day of downside behavior
before a turn up will happen. By the way most Fridays before a major three-day holiday
can often be an up day in the markets.

Meanwhile many indexes are showing what could turn out to be double top formations.
These formations could turn into cups if we can put handles on them in the trading days
to come. Here are a number of indexes that all look the same. First up is the
Semiconductor index known as the SOX, then on to a few others.

1/4
Lets see the action on this big index and where it was turned back after moving outside
the trading bands.

2/4
Let’s take a look at a stock that has topped out after a huge run up. Those of you that
have attended my seminars will clearly see everything that I've taught you evident in this
chart. This stock's move is over in my opinion at least for many months.

3/4
We can anticipate a good rally on Friday if two conditions are met tomorrow. The
NASDAQ must close higher tomorrow than today’s close. Secondly, we hold above 2228
during trading tomorrow. If those conditions are met keep your eyes open on Friday.

Monday is a holiday here in the United States, which means there is no trading on
Monday. Therefore my newsletter will be to you on Monday evening and by then more
stocks should have set up once again.

See you then.

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 28 May 2001

Hello out there stock fans. A better than anticipated day on Thursday followed on Friday
by very poor economic numbers which sank the market. However, Friday’s action had
very light volume which is typical and expected since many traders take the day off.

Biotech stocks continue to outpace almost all other groups. The alternative fuel stocks
are still on the move as well, possibly poised to push higher. Many tech stocks are resting
with some like Mercury Interactive (MERQ) and Brocade (BRCD) looking more and more
like they are starting to base.

Stocks like Veritas (VRTS) and Qlogic (QLGC) are still acting well and could move up
again when the market turns positive. VRTS, QLGC and many of the leading biotech and
alternative energy stocks are still very close to their recent highs. This is quite positive.

In the Biotech arena leadership consists of these stocks. Protein Design Labs (PDLI),
Myriad Genetics (MYGN) Human Genome Science (HGSI) and Giliad Science (GLID).
Other good-looking stocks in this group are IMCL, AVIR, and GENZ. In the Medical-
Ethical Drug group CIMA is red hot.

Here are the alternative energy stocks once again. This time Plug Power (PLUG) is
moving best, but very extended right now. HPOW, SATC, FCEL, APWR, CPST, BLDP,
and PRTN.

Here are a few stocks with good chart patterns that should turn out to be good movers
soon.

1/4
2/4
3/4
Here are some potential movers for the active trader. As always the market needs to be
positive for the day and volume should be expanding. ADBE at $46, ONIS at $37, BEAS
at $42, CALP at $30, CBST at $31, CHKP at $64, COLM at $75, CPST at $37, GENZ at
$109, HGSI at $71, IBM at $120, IMCL at $51, MYGN at $68, PDLI at $80.

The stocks listed here today are pretty much the movers in the market right now. Let’s
hope for a strong week this week, as last week was a little sluggish.

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 29 May 2001

Hello out there stock fans. A downgrade of storage stock EMC Mass today set in motion
a downtrend which broke support at the NASDAQ horizontal trend line in the 2228 area.
Today’s break was on volume which shows conviction for this new trend vs. Friday’s
minor break, which had no volume. Once this trend line was broken many other stocks
and groups followed suit and lowered in price on moderate to good volume.

Even the S&P 500 broke its support line today. This suggests that the NASDAQ and
many stocks in the S&P will now go into a correction for some time to come. Mood has
quickly changed in the market. Up until Thursday of last week, the market ignored or even
bought bad news. Now the market is selling bad news and good news alike, the upgrade
of CHKP today being a prime example.

Of course more bad news came after the market closed when Sun Microsystems
(SUNW) reported that earnings will be close to 2 cents per share this upcoming quarter
and said that Europe and Asia are weakening. They also said that they see no rebound in
the U.S. anytime soon. This is obviously bad news for the market. Many tech stocks are
down in after hours trading on this news. Looks like it could be another tough day at the
office tomorrow folks.

Now on to a few charts of what’s happening in the market. First up is the NASDAQ and
then on to the S&P 500. Let’s also take another look at those indexes I showed you last
week with those double tops. I mentioned that unless we see them break out within two
weeks this market would sell off a bit and probably move horizontal in a trading range for
sometime to come.

1/6
Here are those indexes

2/6
3/6
Here is a stock to consider shorting. Shorting is not for the average trader and you need
lots of experience in the market before trying it! You must also be on real time.

4/6
Here is a chart representative of the behavior seen in many stock charts. Many stocks
looked fair to good going into today and this is why.

Many leading sectors rolled over pretty hard today as the NASDAQ broke support. The
only sector not to get hit was the Biotech’s. This may change soon so it may be best to
step aside until things calm down and stocks set up once again.

Once again it’s very important for stocks and indexes to hold support areas. Once these
lines of support are broken it's vital for you to realize that your trade or investment could
move lower. Much lower than you could have thought possible.

See you tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. The model portfolio is in cash and I have note below regarding this and its
significance to my report.

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 30 May 2001

Hello out there stock fans. Reverberations from news given by Sun Microsystems after
the bell yesterday sent further shock waves through all markets today. The NASDAQ
gapped down below its rising trend line at the open and never looked back. It closed just
off it's low of the day and just 24 points above its next support level at 2060.

The DJIA took part in today’s sell off as well, shedding over 166 points. It closed
convincingly below its prior break out point which was the 11,000 area. This brings all of
the leading indexes back into their prior bases. This alone says the market needs more
time before another attempt is made to move stocks higher.

The chart damage done today to all tech stocks was heavy. It will take weeks if not
months for these stocks and their charts to rebuild. Most stocks have a large gap down
which if left unfilled signals weakness and further lows to come. Add these bad charts to a
market that is now selling all news good or bad and the fact that we are now entering
earnings warnings season and one could make a strong case why cash is king or holding
shorts could be better on selected stocks.

Let’s look at some gap downs on some leading stocks and the OTC as well. There are
also a few stocks that look attractive for shorting.

1/5
2/5
3/5
I would certainly say that most stocks and the NASDAQ itself have had a rough two days
down. But we could very well get a breather of a day or two after these two hard spikes
down. One might want to take this into consideration if adding new short positions is on
your mind right now. In time more stocks will set up to short. Just a thought folks.

I would also caution anyone from holding any stock in long position overnight. Right now
this would be nothing more than Russian Roulette as to which stock(s) pre announce bad
earnings and collapse overnight. As we’ve seen before it doesn’t even have to be your
stock but a group leader or a major player like Nortel Networks that pre announces and
takes your stock with it.

Folks I understand that the chart of the NASDAQ did not pop in the hyperlink last night. If
that ever happens again please go to the web in the member login area where you can
bring up the letter for that day and you will find that chart. We generally post by 8:30 p.m.
PST.

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.

4/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 June 2001

Hello out there stock fans. A slight snap back on Friday after the NASDAQ sold off 10%
from recent highs. This snap back was on very light volume after two days of steep
downside action on heavy volume. Not the most bullish behavior to be sure and in fact it's
quite bearish.

Many stocks enticing in the tech area still have gaps to the downside that have not been
filled. This implies that unless these gaps are filled in a fair amount of time we are likely to
see lower prices on these stocks. Meanwhile the Biotechs and other drug groups have
recouped and are poised to move higher.

Since Biotechs seem to be the place to be right now I have a few charts to show you.
AVIR has recouped nicely and is hitting new move highs. This is very constructive
behavior.

This company develops and markets pharmaceutical products. Earnings for the last
quarter were up 133% to .14 while revenues were up 23% to $83 million.

1/5
Here is one tech stock that is holding up remarkably well. It’s Microsoft and the high flat
base is very bullish. This company is waiting for the outcome of the appellate court ruling
on the anti-trust case. It's due out within the month I hear. This should have a major
impact on the movement of this stock.

2/5
Here is a stock that exemplifies what I’m referring to. The gap up generally leads to
higher prices over time while the gap down should do the same in time.

3/5
Now on to the NASDAQ. Back in the summer of 1999 the NASDAQ moved in a horizontal
fashion for the entire summer and continued well into October of 1999. This created a
very long base on the NASDAQ and many stocks as well. When stocks have long bases
this can yield big gains. We saw exactly this in the last of the bubble from October 1999 to
March 10, 2001.

Short bases yield short time duration moves. Long bases yield longer time duration
moves and subsequently higher prices. This too was evidenced from October 1999 to
March 10, 2001 after a 6 month base on the NASDAQ. We will never see those crazy
bubble moves again but we will definately see those long duration moves with big gains
again. As we've seen it do many times in the past, the NASDAQ would only need to base
horizontally in a trading range to position us for another big move. If that base could run
all summer long this would and should yield large gains come this winter.

Fortunately, even if the NASDAQ bases out for a long period, we will still see selected
stocks have significant moves for us to trade. Here is a chart of the NASDAQ.

Here are a few Biotechs that look like they may move higher tomorrow. PDLI at $79 and
MYGN at $67.

Here are some stocks that have broken down and are very oversold right now. Therefore
we might see a day or two of bounce from them. CCMP, CHKP, QLGC, STOR, LEH,
MERQ, and PWER.

I’ll see you guys tomorrow.

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 4 June 2001

Hello out there stock fans. A fairly positive opening for the first 20 minutes of the day
today but on extremely light volume. Since light volume is considered negative most of
the time, traders took little time selling stocks trying to capture the highest price of the
day. This selling pressure turned many stocks into the red for the day. This is why more
often than not it’s best to wait 20 to 30 minutes after the opening before you buy.

After a brief sell off in the Biotech’s along with everything else this morning these
Biotech’s came back strong with many of them making new move highs. Three stocks
listed here on yesterday’s letter with buy points made some of the biggest moves in the
market today. PDLI and MYGN tacked on over $4 each while AVIR went above the upper
trading band for a $4.48 gain.

Meanwhile many stocks that are technology stocks but not related to the Biotech field
have chart patterns that are considered very bearish. The only thing going for these
bearish patterns are that these stocks are now short term very oversold. It will be
interesting to see which way they go as a result of this Tug of War between the bears and
the oversold dip buyers. Let’s take a look at a few of these stocks and their charts. By the
way these charts are as a result of the news last week from EMC and SUNW about
slower growth.

You can see also that almost all of these stock charts look the same. The most noticeable
is the large unfilled gap down. Had it not been for the negative news these charts were
very constructive and poised to move higher.

1/6
2/6
Here is a stock that acted very good like many other stocks did until the EMC and SUNW
news came out. It has a rising wedge and during the bear market this pattern was the kiss
of death for a stock. This one may have more difficulty now that interest rates have come
down so much. The stock is Openwave (OPWV).

3/6
This stock tried to break out and run on very positive news, however, I mentioned that this
group was having trouble moving at the time I listed this stock. Trouble is right as this
stock had no follow through on the second day after it broke out. No second day follow
through is a warning sign of potential trouble. The original buy point was at $62 or so and
stops should have been set at $60. Now the stock is sitting much lower and looks like it
might take another discount again. Ciena (CIEN) is the stock.

4/6
Remember these stocks are oversold right now so even though these patterns look very
bearish we could see them move the other way for some period of time. Therefore be
quick and nimble should a stock break below a trend line and then suddenly pop back
above the line. If you can’t be quick on the draw, maybe it’s best to sit these out.

I’ll see you tomorrow.

Daniel J. Zanger

Chartpattern.com

P.S. Positive earnings surprise from CMVT and decent comments after the bell from
XLNX could provide fuel for a positive opening tomorrow and potentially higher prices
throughout the day, which would help relieve an oversold condition. For those of you
considering longs look to the Biotech sector.

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 5 June 2001

Hello out there stock fans. There was no tug of war today as the Bulls took control of the
market early on and rallied stocks well into the close of trading. Poor economic numbers,
some positive news on earnings from CMVT combined with a deeply oversold market
pulled many tech stocks out from their bearish patterns.

The Biotechs on the other hand continue their bullish ways with two stocks that were
highlighted here two days ago, PDLI and MYGN, leaping to new move highs today on
heavy volume. Almost all of the Biotech charts are very positive with many extended into
their upper trading bands where they often rest or retreat in price. Let’s look at some of
these stocks now.

1/5
On some of these Bio’s like PDLI you can see a Darvis box formation before it ran. This is
what most tech stocks were in the process of setting up prior to the negative news from
EMC and SUNW, which broke them down. Soon these stocks should set up again and I
will have buy points for you then.

Here is a stock that I’ve listed here a number of times. It refuses to break down therefore
don’t fight it - go with it. Nvidia (NVDA) is the stock.

2/5
By the way I showed you a chart of Microsoft (MSFT) the other day and its fine almost flat
horizontal base. Today MSFT broke out fractionally. Volume was fair but the price
movement was marginal. Stops should be set at $70.

Here is a shot of the NASDAQ. You can see that it filled its most recent gap down which
is positive while at the same time it has run up against its broken trend line. Hopefully it
will break over this line and the NASDAQ could make fresh new highs.

3/5
Here is a chart of the S&P 500. You’ll see that today this leading index broke above
resistance once again which is very positive.

4/5
MODEL PORTFOLIO

As you know the MODEL portfolio has been in cash for 3 weeks or so. I do however like
the action on NVDA very much. I will add this stock to the model portfolio when it hits $96.
Hopefully this won’t be tomorrow but in a day or two. I will add 600 shares at $96.

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 6 June 2001

Hello out there stock fans. A pretty flat trading day with many stocks that were up during
the day retreating to close the day changed just fractionally. However the Biotechs
retreated en masse with most ending the day down $1 to $3 with just a few advancing in
price. A slight pull back after a decent run up is healthy. Let’s hope it stays that way.

After a mediocre rise yesterday the market was tamed today on the same old news - this
time out of Hewlett Packard (HP). They said world technology spending is slowing. This is
the same news that hurt the markets last week when it came from Sun Microsystems
(SUNW).

I have a feeling the market is on hold until the news from Intel (INTC) Thursday after the
bell about current market conditions and guidance going forward. The technology sector
will be moving one way or the other on this news. If you're long and the market responds
negatively then you’re going to get hurt and if you're short and the market responds
positively then the same result. May be time to hedge your position(s) with some cheap
puts or calls if you decide to stay in the market in tech. Just something to think about
stocks fans.

Here is a picture of the Computer index (XCI). It broke through its rising trend line and
has now completed its snap back to retest this broken line, which is very common after a
break of a rising trend line. This kind of action suggests we go lower from here in this
group. Stay tuned.

1/4
Here is the best looking index in the market today. The Biotech index is the strongest
index that I can find, however it is running into an area that might pose some resistance.

2/4
MODEL PORTFOLIO

As you know the model is in cash right now. Today NVDA did not hit the buy point and it
would be best if this stock could tail off somewhat and close a few days down before it
takes off and hits the buy point. This would be ideal. If you look at the chart of this stock
today you’ll see that it has a possible right shoulder forming which gives it a potential
Head and Shoulders formation. This stock could go either way in a day or two so it could
pay to wait and see if this stock can break out north of $96 which would negate this Head
and Shoulders pattern. If it can’t, then who knows what may happen.

Most charts have not yet formed any small patterns that I can list for the active trader but
here are two to consider going long on and two to consider going short on. First the longs.
ESRX at $105 and IVGN at $79. Shorts are FNSR at $16 and EMLX at $35.

Hopefully some charts will set up soon and we can resume to the upside. However,
besides the Biotechs, most stocks will need two to four weeks to rebuild their patterns.

See you on Sunday.

Daniel J. Zanger

Chartpattern.com

Copyright © 2025 Daniel J. Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 10 June 2001

Hello out there stock fans. Bad news on Friday from Juniper Networks (JNPR) which said
revenues would fall short of expectations by some 40% and earnings would drop some
60% from last quarter. The stock plunged $8.62 on Friday to $38 on this news. Now we
know why this stock failed to move up after two break out attempts. This news also had a
major impact on the markets Friday with all of the leading indexes finishing much lower
on the day.

You may remember that I mentioned 8 to 10 days ago that 'Holding tech stocks other than
Biotechs overnight was nothing more than Russian Roulette'. The same scenario we
witnessed Friday on JNPR could be played out many more times over the next 2 to 4
weeks as we get closer to the end of this quarter. Companies can assess whether or not
they will hit or miss earnings.

Two stocks that have recently reported earnings and good guidance going forward are
Comverse Technology (CMVT) and Nvidia (NVDA). Both of these stocks reported
earnings just within the past 10 days and both were bid up aggressively on their earnings
news. The fact they just reported earnings make a pre announcement at this time much
less likely. CMVT reported earnings up 34% to .43 with a P/E of 42 currently while NVDA
reported earnings of .40 up some 67% with a P/E of 69. NVDA as you know was added to
the model portfolio on Thursday at $96 per Wednesday’s letter.

In other action, the Biotechs have been resting after very good gains. After some more
consolidation some of these stocks should move out again to hit new move highs. Others
in this strong Biotech group look like they have started to base or correct in price if you
will. Here is what a good and positive chart pattern should look like with higher highs and
higher lows. It is the strong Biotech group.

1/7
I wrote here 2 weeks ago that I thought many stocks were going to start basing. I
mentioned in that letter two stocks that I thought had started to base, Brocade (BRCD)
and Mercury Interactive (MERQ). The next day both of these stocks cratered $5 each on
good volume. It’s now clear that not only are these stocks basing but virtually all other
tech stocks are basing as well. It's been anywhere from 3 to 6 weeks since most of the
leading and meaningful techs have made any progress. Yes there are some smaller
stocks making some progress but the market needs the leadership stocks in the tech
area to be making new highs on a regular basis.

Many of these tech stocks are showing lower highs which is not good. This could easily
lead to lower lows. If these patterns continue their course it could lead to much lower
prices on these stocks. Let’s take a look at some of these right now. A number of these
are in channel formations with these lower highs.

2/7
3/7
4/7
QCOM and NEWP have patterns similiar to EMLX right now.

5/7
These are just a few of the stocks that are exhibiting such patterns. Until these stocks
clear the basing area on volume or make new move highs they are much more likely in
this market to be at substantial risk. Why risk it? Why not wait until these stocks break out
and make new move highs?

Now on to a fresh chart of the NASDAQ.

6/7
There are still no small patterns set up yet for the active trader but the ones listed above
should prove fruitful in time.

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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 11 June 2001

Hello out there stock fans. Another rough day in the markets today with many leading
groups taking on water and sinking fast. Today it was the Biotechs that took on the most
water with leadership there sinking anywhere from $2 to $5. Most stocks in this group
filled their gaps and a number of them closed on their lows of the day suggesting further
lows should be nearby. You may remember I mentioned in last night's letter I thought this
group was going to start basing or correcting.

Other groups that were under pressure today were the Brokers. This group is breaking
down at a time when they usually perform very well. That is to say, when interest rates
are moving lower this group moves up. This is not a good omen for the market and for
three good reasons. The first reason is that deals subsequently won't happen as a result.
The second is that IPO's might dry up again. And third, trading volume is very light and
will stay on the light side. Lighter volume is not conducive to higher stock prices. Brokers
that broke down today are Morgan Stanley Dean Witter (MWD), Goldman Sachs (GS)
and Lehman Bros and trading firm Knight-Trimark. Here are a few charts.

1/4
As you know there were a number of tech stocks that took a beating today at the open as
these tech companies reported they would miss this quarter's numbers. With that in mind
here is a tech stock that, as of yet, just won't go away. IBM is the stock and it has a rare
Cork Screw channel pattern that I see once every 5 years or so. The other ones that I've
seen turned out to be very powerful movers out of this pattern however this market is not
ripe for a big move right now.

2/4
In the last hour and a half of trading technology stocks staged a good comeback after a
good beating early on. I thought these tech stocks that rallied today would fade late in the
day however no such luck. It's very possible that we may see a rally of some sort
tomorrow. However all of these charts are still sporting lower lows and lower highs. If a
rally in tech does occur most all the stocks that rally probably would not clear their most
recent lower high points which I showed you in last nights letter (see archives in the web
site in the member login area). Until they do clear recent highs all rallies will be short lived
and subject to failure.

MODEL PORTFOLIO

Nvidia (NVDA) as you know is the lone model stock and as usual this stock dipped down
today like most other tech stocks and came back like it does so many times. Tomorrow
the stock needs to move up to preserve the best possible pattern. Therefore stops will
now be set at $92.

Most of the best charts to show were in the letter last night. There are no active trader
selections tonight until more time in the charts has been put in.

As you know I'm a big fan of long base patterns and if this kind of market action keeps up
we're sure going to have a field day when the market turns around. Hang in there.

See you tomorrow

Daniel J. Zanger

Chartpattern.com

3/4
 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 June 2001

Hello out there stock fans. Nokia (NOK) and Affymetrix (AFFX) pre-announced slower
than expected sales today and the market sold off hard at the open. This hard sell off
lasted until the last hour and a half of the day when a late day rally pulled the markets
back to near even for the day. Had it not been for NOK and AFX pre-announcing I feel we
would have seen a small rally as I mentioned last night. We often see rallies mid week of
a triple options expiration week.

Meanwhile most of the stocks highlighted in the weekend charts are still surfing inside
those channels that I marked out. Needless to say, waiting for things to get going one way
or the other can be frustrating and appear boring. However, those of us who patiently wait
it out are often the big winners. As time goes by these bases will become more evident
and the pickings will be much easier.

Meanwhile the NASDAQ is surfing in its base as well and today we could have seen it
near its lows of the channel. Next stop hopefully will be back to the upper end of the
trading range ala the base from May 1999 to October 1999. Tonight I have a chart of the
NDX which is an index of the largest 100 stocks on the NASDAQ.

Here are a few other stock charts to look at as well. Pixelworks (PXLW) and Taro
Pharmaceuticals (TARO).

1/3
MODEL PORTFOLIO

As you know NVDA was checked out of the model portfolio today in large part due to the
news from NOK and AFFX. As a result of this, and other conditions unique to this post
bear market, all stocks selected for the model will in large part be stocks at or near lower
turning points and off very oversold conditions.

2/3
Soon there should be some decent selections for the active day trader.

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 13 June 2001

Hello out there stock fans. Lower highs evident recently on most stocks follow through
with stocks dropping lower today. Throughout the week I've mentioned that until this lower
highs behavior is arrested the risk of these stocks breaking down is too great. Most of the
stocks I've shown in the charts this week are still heading lower and a number of them are
at their lower horizontal support lines once again. A number of these stocks with their
lower highs have Head and Shoulders formations as well. A few of these are ready to
break down off the right shoulder. Let’s revisit those charts and see how these stocks are
progressing.

1/6
2/6
3/6
The NASDAQ is also getting very close to breaking down out of a slight rising channel
formation. Looks like we are in for a long summer stocks fans. Here is the latest snap
shot of the NASDAQ and you will notice that the NASDAQ closed on the low of the day.
This usually suggests that the next day will be lower again at least for the first part of the
day. If this happens it guarantees that we will undercut support which tonight stands at
2105.

4/6
Here are a few other random charts to review and ponder. First up is a defensive stock in
the donut business that acts like an Internet stock from 2 years ago. Then, on to Nvidia.

5/6
The Model portfolio is in cash and once again proves to be a timely tool. Historically the
model portfolio has been in cash when the market has turned lower.

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.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 June 2001

Hello out there stock fans. The NASDAQ finally broke below support on Thursday and
continued lower on Friday. This now puts all leading indexes below recent support levels.
These broken support levels will now be the new resistance levels going forward. After 6
straight days of sizeable downside action almost all stocks and indexes are now deeply
oversold and could rally short term with a maximum upside target back to resistance
levels with ease.

Even if the markets were to rally, buying tech stocks and holding them overnight is still
one of the surest forms of financial suicide in this still declining economic environment.
Day after day we are seeing stocks pre announce lower than expected revenues and
earnings and getting cut in price some 30% to 40% at the open of trading. Any buying of
tech stocks at this point would be for short day trades at best.

The big question is how far down will this sell off go and how long it will last. Of course no
one knows with any certainty right now. Seems it’s more of an economic question and no
longer a liquidity question as the Fed’s are probably close to finishing cutting rates.

Meanwhile the most important thing to remember is that most stocks and their patterns
are in defined downtrends. Downtrends whether they are long or short in nature are
nothing more than a series of lower highs and lower lows. Once you can identify lower
highs then you may want to consider checking out of any stock that has this lower high
pattern. Many stocks I’ve highlighted here over the past two weeks with lower highs have
lowered in price substantially. Let’s look at two such stocks I’ve had here a couple of
times and see the damage of this lower high pattern.

1/6
2/6
On the other hand most all stocks in the Biotech area are still holding tough, and as of yet
have had no significant breakdown. Let’s look at a few of the leaders in this group. This
group will probably remain market leaders until there is a pick up in tech spending by
corporations and the retail consumer.

3/6
Now on to some charts of the leading indexes. Here you’ll see that both of these leading
indexes have now retraced about 50% of their prior up move. These moves are known as
Fibonacci or Elliott waves and are widely used in the stock market as support and
resistance points. Combine this with the fact that most all of my oscillators are very
oversold and this could be a good signal for a bounce of some sort in the market.

4/6
See you folks on Monday.

Daniel J. Zanger

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 18 June 2001

Hello out there stock fans. The NASDAQ continues to sell off after its most recent break
of support. Today even more damage was inflicted when the big price gap in place on the
NASDAQ since mid April was penetrated slightly for the first time. As you know a closing
of this gap suggests more weakness will be on its way if this gap is filled completely. Let’s
take a look at the NASDAQ.

Meanwhile the NASDAQ had its 7th losing session in a row today. The NASDAQ hasn’t
had eight losing days in a row since December 1998. This combined with the fact that big
cap stock Oracle (ORCL) reported better than expected earnings and we may see a small
rally in stocks tomorrow. However, when major support levels have been breached like
today, I suspect any rally would just be an opportunity to add to any short positions and
certainly not to add to any longs. If you’re in cash like the model portfolio I think that’s an
excellent place as well.

Over on the NYSE a stock I thought would not go anywhere for a week or more has left
its base with gusto today. Krispy Kreme Dounts (KKD) vaulted out of its small basing area
today on a break away gap on heavy volume. One of my brokers told me today that as of
June 15th there are about 14 million shares in short position and there are only about 38
million shares that float. Looks like this could be a rather good short squeeze in the works
here.

1/3
Basically folks the market and its charts are in a downtrend like I’ve mentioned
consistently for over 2 weeks now. Until stocks calm down and regroup from being very
much extended to the downside, there is little to do as you can see for yourselves right
now. You’ve either nibbled at the shorts presented here or ones you’ve found on your
own. Or you are in cash. In time earnings warnings season will be over and then we
might get some earning surprises to lift the market. I do suspect that we might get a lift
towards the end of the week as short covering might start when we get closer to the Fed
meeting next week.

Meanwhile I will take a vacation day tomorrow. As you know I’ve had no vacations to
speak of since February 2000. In August I will take 10 days off and I will get back to you
on the exact dates. I will then take at least 10 days off each quarter going forward. This is
still far less than the 10 weeks of vacation I promised myself in the policy section of the
website when it was created.

See everyone on Wednesday.

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 20 June 2001

Hello out there stock fans. The NASDAQ for now remains range bound with a top of 2050
and a bottom of 1973. Meanwhile all leading indexes are deeply oversold and most
stocks are deeply oversold as well and are trying to bounce. However for now all bounces
up are nothing more than just selling opportunities. Until the NASDAQ can break above
the 2050 area and then 2100 or break below 1975 stocks will in large part be trapped.

The market may be waiting for word from the Fed next Wednesday before it makes
another meaningful move. A 25 basis point cut in rates has already been factored in so
the way I see it the only way for this market to move up would be on a 50 basis point cut.
A 50 basis point cut could then possibly move the market back up to the upper end of the
trading range. For the NASDAQ this would mean up to 2267 at best, on the S&P 500
back to 1300 and on the DJIA around 11,000. If it’s just a 25 basis point cut then we could
easily see further erosion in the major averages.

Meanwhile Europe (ECB) meets tomorrow to decide about an interest rate cut for them.
The last rate cut they did had our markets moving pretty good on the day they cut rates.
Should a rate cut come at tomorrow's meeting we might see stocks move once again.
Again stocks are primed to move as they are deeply oversold.

Now on to some charts of the NASDAQ and the S&P 500. Here you’ll see that both
indexes are consolidating on trend lines while oscillators are showing that both are very
oversold and ready to turn up.

1/6
The Biotech sector as I thought it would, will lead any turn around in the market should
one come until earnings start to come back in tech. Today we saw many Biotechs turn up
and a few of them break out into new highs. Notables to look at are ELN, GILD and PDLI.
All three of these had strong moves in the market today and all close to making new

2/6
move highs. In fact Elan PLC ADR (ELN) hit new highs today on heavy volume. Earnings
for ELC are up 71% and revenues are up 21% with a P/E of just 39. Here are a few Bios
that are on the move and both are ready to break out.

3/6
Here are some other stocks that are looking good.

4/6
5/6
Here are some potential active trader picks to consider if you’re on real time all day. The
market must be positive most if not all day and stops must be tight at generally one to two
points. CHKP at $49, DGX at $68, EMLX at $35, EXPE at $37.50, ICOS at $51, IDPH at
$74, MEDI at $45, QLGC at $52, RATL at $27, RIMM at $28.

These stocks are the best of what’s out there right now folks. If anything looks extra
special I’ll put it into Maya’s report tomorrow. 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.

6/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 June 2001

Hello out there stock fans. The stock market is having a very tough time finding any
traction even though the markets are oversold on all oscillators that I have. Earnings
warnings are still dominating the news while the markets are eagerly awaiting the
outcome of the FMOC meeting on interest rates due this Wednesday afternoon.

The market is already trading on a perceived 25 basis point cut, so news that a 25 basis
point cut in fact does happen that would only trigger 'Sell the News' trading. I believe the
only hope of a meaningful rally would be a 50 basis point cut. Even then I would be
skeptical of any rally and would probably hold off until more charts have rebuilt
themselves as lower lows still dominate the landscape of charts suggesting that any rally
could fail. Remember folks we have already had 5 rate cuts totaling 250 basis points and
the stock market has gone nowhere. Believe me another 25 or 50 basis point cut will do
nothing to fuel a meaningful move.

Let’s take a look at some charts of the NASDAQ long term and a longer term one of the
DJIA which has completed a 15 year bull market run and a major parabolic run of its own.
Both long term charts show broken long term trend lines and both indexes are sitting back
on these lines once again. A break of these lines once again and we could see a retest of
the April lows with little problem.

Longer term charts of the majors indexes.

1/7
Here is an updated daily chart of the DJIA showing that longer term trend line.

2/7
Meanwhile short term resistance on the NASDAQ is 2100 and support is at 1973. A break
below 1973 on the NASDAQ and we should quickly drop another 100 to 150 points.
Support on the DJIA is at 10,480 and any break on volume could take the DJIA down
another 300 to 500 points in week or two or maybe less.

Meanwhile of the better developments taking place right now for a longer term forecast is
that most all oil stocks in all the different groups are rolling over and breaking down. In
fact many are close to making new 52 week lows as more news about inventory build-up
percolates out. Many times stock prices will lead the way higher or lower of commodity
prices in advance. Since oil stocks are breaking down under support and heading lower
they should be forecasting lower oil prices in the near future. Lower oil prices are really
the last component to the puzzle to a much stronger economy. Lower interest rates, lower
taxes and now hopefully lower energy prices should be a good boost to the economy.
Here are a few charts to highlight these breaking stocks.

3/7
Here are some of the charts that I’m looking at which help me conclude that this market is
heading lower. Two of these charts are of the leading stocks in the leading group which as
you know is the Biotech’s. Remember when leadership goes so does the market. Since
these stocks are breaking down so should the market.

4/7
5/7
Folks as you know I show lots of stocks during the week. However most times I don’t say
one way or the other if its swing trade which is holding a stock 2 to 5 days or longer term
trade beyond two weeks or more. Basically it’s up to you and the style of investing you
choose. However I do know that when the model portfolio is empty as it is now or close to
empty then the market is not acting well and you’re at greater risk. Conversely when the

6/7
model portfolio is full the market and its stocks are making new 52 highs regularly and
higher highs control the patterns. This is why I have had this note at the bottom of each
letter every night.

'We have found that when the model portfolio is in cash or very near to it then the market
is behaving very poorly. More often than not we've found it best to either day trade if you
prefer or to be in cash. When the model is fully invested then the market and the
technicals are looking and acting well. Fully invested means that a total of 5 stocks are in
the model portfolio. Please check the model portfolio in the member login area of the web
site to see how many stocks are in the model portfolio. This will give you a quick snapshot
of what we think of the market conditions right now'.
Http://www.chartpattern.com/cf/portfolio.cfm

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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 25 June 2001

Hello out there stock fans. Dow stocks had a tough day today with a number of DJIA
stocks breaking down out of solid tight chart patterns. Caterpillar (CAT) and Minnesota
Mining (MMM) have broken very nice and solid chart patterns not to mention Microsoft
(MSFT). When leading stocks such as these on their respective indexes break down out
of nice bases this is usually very leading as to the near term of future of the index that
those stocks are in, In this case the DJIA. One important thing to note is that the DJIA
broke 10,480 but on extremely light volume. This is not the convincing break that I spoke
of in last night’s letter.

Meanwhile over on the NASDAQ, Biotechs were getting clobbered today and both stocks
listed here last night as stocks worth shorting broke down strongly. Protein Design Labs
(PDLI) and Myriad Genetics (MYGN) each broke support in a hurry today and both were
at one time down about $5 each. Seems the Biotech Index (BTK) and the Biotech
Holders Trust (BBH) are both showing similar patterns that are often precursors to lower
prices. The pattern is a Head and Shoulders pattern and it seems we are seeing it quite
frequently the past few weeks. Let’s take a look at it.

1/4
Again sluggish trading today as most tech stocks moved lower in price slowly with the
NASDAQ stuck in its trading range. Seems the NASDAQ may be benefiting from several
factors at hand right now. One of these I’ve mentioned here for a week which is oversold
stocks. Also the market is on Fed watch as no one seems to want to buy or sell stocks
until the Fed shows their hand on interest rates. We also have end of the quarter window
dressing which could help some stocks and last but not least is the rebalancing of the
Russell indexes.

Rebalancing of the Russell 1000, 2000 and 3000 can move stocks selected to go into it,
or up a level, considerably. Some say selected stocks can move as much as 30%, with an
average move of about 22% over the following week. Fund managers buy newly
designated stocks and add them to their portfolios that track these indexes. Similar action
can be had on stocks that are added to the S&P 500. Call your broker for a complete list
of stocks to be added to the Russell indexes.

Now on to charts of the NASDAQ and the S&P to see how they are developing.

2/4
3/4
As you know the Fed meets Tuesday and Wednesday with their decision on interest rates
due out on Wednesday. To be sure many stocks will be moving all over the map as
institutions position themselves for what they believe will be the direction of the market
come Wednesday. This includes buying, short covering, adding shorts and selling stocks
in addition to the Russell rebalancing. Therefore I doubt anyone will get a fair gauge on
stocks until next week when all this is said and done. I will say that lower lows continue to
dominate the trend which is lower until otherwise broken. There are no other charts that I
can find to show you for trading tonight. Hopefully some will have set up by tomorrow.
See you then.

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 26 June 2001

Hello out there stock fans. The NASDAQ has taken pounding after pounding from
preannouncements of poor corporate earnings for the last 8 days yet refuses to move
lower. The NASDAQ is going to make a move one way or the other soon and it could
come as soon as tomorrow. Let’s take a look at fresh charts of the NASDAQ and the S&P
as both are at areas where moves can happen. These areas are known as Pivot points.

1/5
As you know the Fed will announce their decision on interest rates tomorrow at 11:15
PST. To be sure the markets will move right after the announcement is made. Often the
market starts up for 3 to 8 minutes only to get hammered by waves of 'sell the news'
traders. This of course might happen again tomorrow. If you’re going to buy on the news it
might be best to sit on the sidelines for maybe 20 to 40 minutes and see if you can find a
trend of some sort. It’s up to you.

My guess is there will be plenty of time to go long on a few selected stocks during the
month of July. A number of stocks are in fact rebuilding their bases as the carnage has
been underway since the end of May. These stocks should be ready to go in a week or
two. Let’s look at some now.

2/5
3/5
Other than these few stocks most stocks are still in downtrends. Lower highs dominate
the landscape of stocks. If we do get a day or two of a good rally it will do little to
overcome the negative stock patterns. However, if we can rally for 8 to 12 days then we
might start to see some better looking charts. Remember, much of what we saw today
was probably short covering ahead of the Feds. On Friday we will get much of the action
from the Russell rebalancing. We won’t see the smoke clear until next week.

Here is a stock that was a huge winner back in the early 90’s and collapsed like so many
NASDAQ stocks do. It’s making a comeback of some sort but looks like a slow mover.
Never the less it could be $20 soon. Borland Software (BORL) is the company.

4/5
Not much else to show stock wise until the charts set up further and more time has been
put in. When they do I’ll have them here. 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 27 June 2001

Hello out there stock fans. The Feds did what was highly anticipated today which as you
know by now was a 25 basis point cut. Many leading tech stocks were up slightly before
the announcement and remained that way until the close of trading today. The action on
the NASDAQ is resilient yet still very sluggish.

Seems many stocks that were down over the past 5 weeks have seen the worst for now
unless of course they too preannounce. However those that don’t may continue to rebuild
their charts and by the time these stocks announce earnings in a few weeks they could
have fully developed bases and be ready to break out. Let’s look at some of these stocks
that are rebuilding their charts as of today. Others that are looking better everyday are
VRTS, VRSN, GNSS, PXLW, QLGC, and a few of the Biotechs.

1/3
Here is a stock that is breaking out now and I had it here with its trend line late last week.

As you know I highlighted the fact that oil stocks were breaking down in Sunday’s letter
and mentioned that this can often be a precursor to lower oil and gasoline prices. Today
crude oil broke support at $26 a barrel and closed the day down $1.37 to $25.61 and

2/3
unleaded gasoline broke down hard too. Also oil stocks continue to lower in price
breaking more areas of support even as many analysts continue to push these stocks. It
pays to read the charts and not listen to anyone in this business.

With the last rate cut back in mid May the market snored like it did today only to get
moving strongly over the following few days after the cut. I hope we get that same action
starting tomorrow. Still the NASDAQ is having difficulties with the 2080 area so until we
can surge over it on volume look for more of the same sleepy action.

For those of you with a chart program of your own here are a few stocks that are low
volume and not well known. They are on the move with excellent charts. UOPX, ISRG,
SRNA, EXPE, CECO, CTXS, DFXI, DIGE, EXLT, FMKT, and GILD. Most of these stocks
are hitting new highs and are either starting or are in the process of breaking out of their
patterns.

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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 1 July 2001

Hello out there stock Fans. A nice lift from oversold conditions during the week thanks in
part from an accommodative Fed and rebalancing of the Russell indexes. Now that many
stocks got a nice lift due to funds needing to buy them for their indexed portfolios the
question is what happens come Monday. Will we see some weakness in these stocks or
will they continue higher? I'm not sure myself but one thing I do know is that more often
than not the first three weeks in July are fairly strong followed by weakness from that
point forward through October. Of course there are exceptions but this happens more
often than not.

Meanwhile the NASDAQ has broken short-term resistance at 2080 and is now up against
another resistance point, which is its descending trend line. The S&P too has broken
short-term resistance and now needs to clear 1241. The DJIA on the other hand is
languishing and moving nowhere fast. I personally still believe we are in a trading range
for many months on the NASDAQ somewhere between 1950 and 2275. This as you
know should create a long base from which to move higher in the usually strong winter
months. Remember, historically speaking 70% of the money made in the stock market is
made from November through the end of March. Now on to some charts.

1/5
Friday saw many stocks like STLW running up 10 to 30% along with many others
breaking out into new move highs. However much of this price action was due to the
Russell rebalancing. Therefore all stocks that I show below are subject to a potential
reversal so beware on all stocks you consider. Here are some stocks with nice bases that
are ready to move up or in some case have already moved up.

2/5
3/5
Last week I listed two stocks I thought would take until this week to get going. However
they took off during last week. This may have been due to the Russell rebalancing and
maybe not. Pixelworks (PXLW) and Genisis Microchip (GNSS) are the stocks and both

4/5
have explosive earnings due to prices coming down sharply on flat panel screens for
computers, which these companies are involved in. Let's take a look at PXLW now, but I
would wait for a pull back before I would buy any now.

For those of you with chart programs, MLTC look and acts well for a new issue and is in
the semiconductor group.

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.

5/5
Archive newsletter
chartpattern.com/archive-newsletter.cfm 2 July 2001

Hello out there stock fans. A very sluggish day today as stocks adjust from post Russell
rebalancing. Many stocks dropped hard at or near the open, back to levels seen on
Thursday and Friday before Fund managers ran them up. A few stocks managed to post
small gains. Meanwhile energy related stocks continue to tumble on heavy volume
suggesting further lows in energy prices to come.

This week will probably be lightly traded since Wednesday is the Fourth of July holiday.
The stock markets will be closed the second half of the day tomorrow and all day on
Wednesday. This as you can imagine will prompt many traders to take the week off so
look for low volumes all week long. Low volumes as you know usually mean little or no
progress in stocks typically.

Meanwhile the VIX index or indicator is now down to an area that usually spells trouble at
some point in the near future. This index usually vacillates between 20 and 30 with very
high spikes upwards of 40 to 50 in markets that become panic stricken. A Low reading is
associated with bullish or complacent markets. It's at these times of low readings or
complacency when the market turns and heads south thereby driving this index up. This
doesn't mean the market will necessarily head south right away. This index can stay at
this stable level for awhile before the market turns. Let's look at a chart of this index

1/5
Should the market and its charts hang in there I've found a few stocks that look very good
and should perform well. Here they are.

2/5
As I mentioned earlier we are seeing most oil stocks breaking down. They are behaving
in a way similar to the breakdown in tech stocks which headed much lower over time.
One tell tale sign that can signal a stock or group that will head much lower is the
constant breaching of the lower AIQ trading band. If this band is violated and the stock
remains below it, the stock typically will not rebound quickly. In fact, it has been the case
that these stocks will move much lower in the short term. This is the case with oil service
and drilling stocks. This breach of the line with no buying pressure as we are seeing now
strongly suggest that these stocks will be much lower in a few months. Here are a few
charts to highlight this breach.

Two stocks WFT and SII are too overextended right now to consider shorting while WGR
has too low a float and moves too slow to consider.

3/5
4/5
Since there is no trading on Wednesday there will be no Letter tomorrow from either me
or Maya and her InfocusReport. I will be back on Wednesday with another report.

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 4 July 2001

Hello out there stock fans. A holiday shortened trading day makes for trading so sluggish
that stocks had almost no movement to speak of. The market is waiting for traders to
return from vacation along with a hoard of earnings that are due to start next week. For
those of you that are interested we have an earnings calendar in the web site in the
Members Login area.

The Major indexes are very close to breaking resistance with the DJIA looking like its
putting in a rounded bottom and may be ready soon to test and hopefully break its
channel line. The S&P 500 needs to clear 1241 while the NASDAQ seems poised to
break its descending trend line at 2182. Remember this line descends in price daily
therefore its resistance point descends daily.

As you may know the NASDAQ has remained below its 200 day moving average line for
close to 10 months. Most indexes and stocks are considered bearish when they trade
below this line and bullish when it trades above this line. Currently the NASDAQ’s 200
day is at 2548 and descending slowly. Here is a chart of it.

The retail group is acting strong and a number of retail stocks seem ready to move out of
consolidation areas. On Monday I had BBY, which looks and acts fair. Today I have
American Eagle Outfitters (AEOS) and Abercrombie and Fitch (ANF). Both of these

1/3
retailers have P/E’s of 28 and both have similar earnings and revenue growth rates of
about 30% per quarter. Here are the charts.

2/3
That’s it for today and I’ll be back on Sunday with more charts. The real action in this
market should come over the next two to three weeks as companies expose earnings and
talk about visibility for the next two quarters. Stocks should be moving well in both
directions on this news. 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.

3/3
Archive newsletter
chartpattern.com/archive-newsletter.cfm 8 July 2001

Hello out there stock fans. The major indexes broke down below support areas on Friday
on negative earnings news from bell weather technology company E M C Mass. (EMC)
and chip maker Advanced Micro Devices (AMD). The NASDAQ broke below its
Symmetrical Triangle that I had for you the other day on a gap down while the S&P 500
broke below support at the 1203 area. Meanwhile the DJIA has now retraced 50% of it's
prior up move from the April lows but it remains in its descending channel with lower
highs and lower lows. Let’s see some charts of these indexes.

1/5
Friday’s breakdown also hammered many charts that were setting up fairly well after the
last crushing the market took back at the end of May. It took about 5 weeks for many
charts to get back to where they were before that breakdown and I suspect it will take at
least that long for these charts to rebuild once again. Stocks such as QLGC, BRCD, ANF,
IBM, VRSN, MMM, CAT and numerous other charts that I’ve shown here have broken
down and some severely. Most of these charts will take a long time to make a meaningful
comeback as will the market.

It’s possible that this may be the retest of the April lows that often comes with a major
breakdown in the averages. On the other hand if all the bad news is out now for the
earnings warning season then the averages might hold somewhere in-between the old
lows and where we are now.

Well what to do now? The model portfolio is 100% in cash and I suspect that cash may be
the best place to be until the stock you're interested in posts its earnings and can say
during its earnings conference that business is improving. Then one might consider a day
trade or possible longer. Until then the market and the behavior on stocks is going to be
very very choppy with many stocks gapping down overnight and just a few moving up on
good news. Until the market can find its bottom and all the bad news is out in the open,
this market will not find any meaningful traction.

Now on to some charts. IBM is up first and this stock broke down from its cork screw
channel formation with a sizeable gap down below the low channel line. You will often see
a stock, like the averages and indexes, snap back to retest just broken trend lines with

2/5
power that will lead you to think that the down move has been canceled. Once the broken
support line has been retested the stocks or index will then roll over and collapse once
again.

3/5
Now that the market is getting hammered let’s take another look at the VIX indicator I
showed you the other day. As I mentioned early last week the market is vulnerable to a
sell off when this indicator gets to the 20 area and is more positive when it approaches
the 30 area.

4/5
Soon I should have a number of stocks that have retested and I will have them here as
possible shorts.

I will see you tomorrow.

Daniel J. Zanger

www.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 9 July 2001

Hello out there stock fans. Another ho hum day of trading today with the vast majority of
stocks going nowhere fast. Today was a fractional snap back day for many stocks that got
whacked hard on Friday of last week while others that got hit continued lower. All in all the
charts remain very negative with little on the horizon that could change this for the market
as a whole.

The market is at a stand still until some of the leading technology stocks start reporting
earnings and more importantly give forward guidance about future sales and earnings.
Since so many companies have pre announced poor results for this quarter including
many bellwether leadership stocks, I can only suspect there will be few companies out
there that can say anything positive enough that could turn this market meaningfully
higher.

Meanwhile the major averages continue with negative chart patterns as you can imagine
after undercutting support on Friday. The NASDAQ does have some support at the 1973
area with multiple bottoms that it could use as support. Of course there still is that old
break away gap that as of yet has not been completely filled. This is one positive for now.
Here is a chart of the NASDAQ with two horizontal lines that should they hold for the
summer would be very constructive for the NASDAQ come winter. And remember the
winter has historically been when 70% of the money to be made in the market is made.

1/3
Here is the latest chart of the Biotech index where we see it trading in a slight descending
channel formation. It’s now at the lower end of it so we might see a small rally in these
stocks. On the other hand if there is no rally then this index should trade lower thereby
breaking the lower line. No need to own any of the Biotech’s right now until the leadership
there can make new highs.

As you know the oil sector is breaking down and I highlighted a number of those stocks
like WFT and NBR and others which have traded lower since. Here is another one that
broke support today and seems like it wants to move lower still.

2/3
The only stocks that look decent right now are some very low volume stocks and a few
renegade stocks with high volume. Here are a few of them for those of you that are
interested. PLMD, RCN, RMCI, SLVN, SRA, STEM, PRX, STEM, and UHS.

See you folks tomorrow.

Daniel J. Zanger

www.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 10 July 2001

Hello out there stock fans. A tough day in the market today as the NASDAQ and one of
its leading indexes broke key support areas. The NASDAQ broke through 1973 and also
filled its gap of April 18 while its leading index, the Biotech index, broke below that trend
line I posted for you last night. This double whammy is very negative for the NASDAQ
and suggests we should head much lower from here.

Today we also saw financials breaking hard which should come as no great surprise. The
BKX index has been unable to make new highs. It has only been able to make lower
highs over the past few weeks. This may be due to the fact that Argentina may be ready
to default on some of its debt. Argentina will have to roll over existing debt at an interest
rate over 14%. This may be accentuating the down moves on our already weakening
markets and setting them up for that double test of the April lows faster than anyone
might have anticipated. This of course would be a repeat of the Russian crisis which
turned out to be a terrific buying opportunity. Here is a chart of the BKX.

1/5
Many stocks look like they want to head lower on the charts. On the other hand many are
now already oversold on my oscillators. With the oversold readings in mind and not
knowing when the market could turn for a short term rally here are some.

2/5
3/5
Now on to a chart that I posted here a few weeks ago that was a big loser today. In fact in
the chart I suggested that this stock was ready to correct. It had a lower high. I mentioned
at the time that once you can identify your stock is failing to make new highs it's time to
exit. Protein Design Labs (PDLI) was that stock and here is the chart with verbiage that I
posted.

4/5
I’ll see you tomorrow.

Daniel J. Zanger

www.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 July 2001

Hello out there stock fans. More earnings warnings this morning, this time from Comverse
Technology (CMVT) which sent shares of this stock and other tech stocks reeling with
CMVT getting crushed some 13 points alone today. However other than just a few tech
stocks most tech stocks other than Biotech’s were mixed with many stocks starting to
show a reversal.

I mentioned yesterday that the market was very much oversold. This says that a bounce
could be due at anytime and after the bell today Motorola and Microsoft’s positive news
have provided a catalyst that could send this market up from its current oversold
conditions. In fact numerous stocks that are very sensitive to market conditions such as
QCOM, QLGC, VRTS and others are up some $3 to $4 each in after hours trading
suggesting a rally at the onset of trading tomorrow. But will the rally last and will it be big
enough to break the current downtrend? A one day rally does not make a new trend but
after a follow through day this could be a new trend. Therefore it will be best to day trade
this at best and beware the gap at the open as it could be nothing more than a trap.

There were a number of winning shorts from last night’s letter, all in the biotech area.
CIMA was the biggest loser and couldn’t find a buyer early this morning and collapsed
some 6 points on only a few hundred thousand shares in the first hour of trading. IMCL
undercut support and dropped over $2, ENZ down another $2.

I believe that the Biotech move as a group may be expiring as all groups do after an
extended run. The internet move expired after 22 months after explosive growth. Most
groups by the way that have major moves and have been market leaders usually have a
life expectancy of around 17 to 20 months on average. The Biotech’s group move started
in November of 1999 so as of now the move has lasted some 20 to 21 months. If history
follows suit then this should be the end of the Biotech big move as a group for a very long
time.

I would like to list some stocks to go long on for tomorrow but right now I see all of them
are up $3 to $4 in after hours. I seriously doubt these stocks like QLGC, QCOM, VRSN
and others will move $10 tomorrow so realistically there is nothing to show on the long
side tonight. On the other side most stocks to short have already made hefty moves down
and are too extended. No mans land if you ask me. However in a day or two more, stocks
will have set up and I will have them here on Sunday.

See you then.

Daniel J Zanger

www.Chartpattern.com

1/2
Archive newsletter
chartpattern.com/archive-newsletter.cfm 15 July 2001

Hello out there stocks fans. The NASDAQ had a massive 75 point break away gap to the
upside on Thursday on news from Microsoft and Motorola. This gap up could be the start
of something good but it’s too early to tell. Many indexes and stocks are still exhibiting
lower highs and lower lows. At some point these lower highs and lower lows will be
broken but for right now these patterns are still intact which as you know is very negative.

It is important not to misread this rally when much of what we are seeing is merely a
market relieving its deeply oversold conditions at or near the lower trading range. Let’s
not forget that larger cap stocks are still reporting that they see the second half of this
year as still very sluggish. Bellwether stocks such as EMC Mass (EMC) which is the
leader in the Storage sector and Nokia (NOK) the leader in the wireless area have
recently reported that the second quarter will be weak. The same is also true from leaders
in the Fiber Optic area such as Nortel Networks (NT) which is still reeling from massive
layoffs as is JDS Uniphase (JDSU) and recently announced layoffs from Corning (GLW).
These announcements suggest that the market will not be able to support many higher
stocks prices anytime soon.

I have said here a number of times and I believe it holds especially true now, this market
will be locked in a trading range for many months to come. I also think that once the
economy can muster some traction and earnings start to come through this market will
get in gear and move exceedingly well, but not until then. The market will generally move
6 to 9 months in advance of earnings and since these big cap leaders see nothing for the
next 6 months I see little other than trading range bounces between the upper and lower
ends of the trading range. Here are the charts.

1/5
The way to play the DJIA as a stock is to use the tracking stock with the tick symbol of
SPY. This same is true of the QQQ for the NASDAQ.

2/5
While the market is waiting for leadership to find growth again to support higher stock
prices there are a number of lesser known stocks making new highs. Here are a few of
them to contemplate for a trade or two.

3/5
I will say that this stock (SMTF) acts remarkably well in most market conditions.

4/5
Here are a few potential movers for the active trader. Remember the market must be
positive before you consider these trades in my opinion. VRTS at $55, WEBM at $21, and
APWR at $51.

See you tomorrow

Daniel J. Zanger

www.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 16 July 2001

Hello out there stock fans. Lower lows and lower highs continue to control stocks as does
news about lower than expected revenues and profits. Add to that one bomb shell after
another with today’s negative news coming from leading Semiconductor Equipment
maker Applied Materials (AMAT) which said business won’t pick up until next year at the
earliest. Biotechs on the other hand crumbled hard again on almost no news other than
the group has had a big run over the past 18 months and it's just their time to expire like
many groups do at the 18 to 20 month area of their run.

There is really no place to park cash and hide at this point as even many defensive areas
of the market like the financials are exhibiting lower lows. Speaking of lower lows here are
a few charts of a number of potential short candidates.

1/4
2/4
Well folks things don’t look too promising right now with the earnings news that we are
seeing so far. Hopefully we’ll get a better batch of news in the next few weeks.

I’ll see you tomorrow.

Daniel J Zanger

3/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 17 July 2001

Hello out there stock fans. A fair day in the market today with many stocks moving up
from oversold levels. The DJIA moved up over 134 points and it’s just now poised to
break that descending channel that I showed you the other day. A break of this channel
on good volume would suggest that this index could make it back up to the upper end of
its trading range at 11,200.

Meanwhile stocks on the NASDAQ were moving up in anticipation of better that expected
news after the bell from chip bellwether stock Intel (INTC). Since INTC didn’t pre
announce prior to today it was a good bet that they would beat the street's consensus
estimates. That’s exactly what they did by one penny and numerous stocks that are in
related sectors along with INTC were up hopping around all over the map in after hours
trading.

Veritas (VRTS) on the other hand, which is in the storage sector, came in with earnings
that matched the street's expectation and then during its conference call guided revenue
growth lower in the next few quarters. This stock and other storage stocks were trading
lower in after hours with VRTS taking a hefty discount of over $6 from the close.

Clearly there is no earnings growth that is sufficient enough as of these earnings reports
to substantiate higher stock prices going forward. Nor is there any guidance from any of
the leaders to show that there will be any meaningful growth for at least the next 2
quarters. It looks like we'll have to look elsewhere for growth stories to buy. In fact here
are a few.

This stock, Forest Labs (FRX), is just now breaking out of a high level consolidation.
Earnings for the last quarter ended in March were up 138% to 38 cents while revenues
were up 26 percent to 333 million. A few other stocks in this group that have excellent
growth rates are KG, IVX, SHPGY and PRX.

1/2
HMO’s Managed Care and Nursing homes seem to be one of the other areas that are
strong right now. In this group the strongest stocks are RIT, UNH, UHS, OPTN, MME,
SRZ, HCR and the very strong Well Point (WLP) which is much extended right now.

There are no other charts that have any value as of tonight. Hopefully there will be some
more tomorrow. See you then.

Daniel J. Zanger

www.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 2001

Hello out there stock fans. Reduced growth forecasts from market leaders EMC Mass
(EMC) and Veritas (VRTS) had the tech sector reeling today with crushing blows dealt to
every stock in the Storage sector and many other software stocks as well like Siebel
Systems (SEBL).

Numerous stocks that took hefty discounts today were in fact listed here in the newsletter
on Sunday and Monday. They were not only bearish but highly suggestive of today’s
action and gave you a heads up well in advance in which you could’ve prepared yourself.
These stocks should move much lower over the next few weeks and months. There is
also a possibility of classic snap to today’s broken trend line prior to moving lower. Let’s
take a look once again at those charts with my original verbiage.

1/4
SEBL by the way is down another $2 to $35 in after hours trading.

Now on to some of those defensive issues that the market is enamored with due to the ill
health of the tech sector.

2/4
For those of you short some of these tech issues in the storage sector I do expect them to
trade much lower over the next 2 to 5 weeks. BRCD could see $20 and VRTS could see
$25.

I’ll see you on Sunday

3/4
Daniel J. Zanger

www.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 July 2001

Hello out there stock fans. Tech stocks continue to suffer while stocks that are more
defensive such as generic drugs and HMO’s are leading the market. One group that is
considered a leader to a healthier economy and is now turning the corner is the trucking
industry. Stocks in this group make up part of the transportation sector which needs to
move up to make the Dow Theory of a bull market come true. Since trucking stocks are
starting to move this could be the start of an eventual turn around in the economy.

Meanwhile a number of stocks that I showed with topping or negative patterns last week
such as ADRX, PSFT, SEBL and others had 20 to 25% discounts in their stock prices
while the defensive issues that I listed moved up anywhere from a few points to eight
points such as BRL. The stocks listed that went up were in the Generic Drug group and
the stocks listed that broke down were in the tech group. These two groups are the most
active in the market right now.

Considering all the negative behavior this past week the NASDAQ is acting like a Timex
watch. It takes a licking and keeps on ticking right above support at the 2000 area. This
NASDAQ sorely wants to move up right now but there is no catalyst to drive this market
so it can find lasting traction. However when it does we should be able to get the
NASDAQ back to the upper end of the trading range.

Other than that I can find no charts worth showing tonight. Tomorrow we should have
some if the market will cooperate. By the way I am taking off Wednesday of this week.

See you tomorrow

Daniel J. Zanger

www.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 23 July 2001

Hello out there stock fans. A slow and tortuous day today as the stock market couldn't
find a single item on which to rally. Even a few of those strong Generic Drug stocks rolled
over today after breaking out of good bases just last week. This market is not healthy due
to very weak earnings that are coming out now and forecasted to be even weaker for
most companies next quarter. This market won’t find traction until it can smell an earnings
turn around which may not happen until the beginning of the 4th quarter. This by the way
is a seasonally strong quarter.

Last week I showed you a few topping patterns on a few stocks like ADRX which broke
down hard and THQI which hadn’t broken down as of yet. This changed today when the
stock took a big tumble on record volume while it sliced through it's rising trend line. Let’s
look at that stock once again.

Here are three more stocks that might wind up with similar fates. All have good earnings
and have had nice long runs. EBAY and ADVP have topping patterns with lower highs in
place while BBY broke its rising trend line today.

1/4
2/4
Now on to a few charts of the leading indexes that suggest we are going to see lower
highs and lower lows until rigor mortis has completely set in.

3/4
Hang in there stock fans. I’ll see you tomorrow.

Daniel J. Zanger

www.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 July 2001

Hello out there stock fans. The stock markets continued to work their way lower today
with little relief in sight. Both the S&P 500 and the NDX moved to undercut support today
which should lead to lower prices on more stocks in the very near future. Even though the
NDX closed below support, the NASDAQ closed near its most recent support level which
could give some hope to a possibly feeble rally soon.

Meanwhile, as to be expected, many more stocks broke support areas today and/or broke
down from nice basing formations. Today’s move affected most groups as there is no safe
place to park cash except outside the equity world unless you’re shorting stocks.

Speaking of shorting stocks there happens to be a few patterns that could yield some
good gains to you short traders. Here they are.

This stock broke down from the Cork Screw Channel formation from which it had
consolidated and now appears ready to break its rising trend line. A break below the line
at $102.50 and this stock could move down to $90 or so.

1/3
Here you see EBAY which opened up today with a nice gap down which was quickly
reinforced with very heavy volume which persisted throughout the day. By the end of the
day this stock closed below the rising trend which I posted for you last night on a huge
volume spike.

2/3
A breakdown in the horizontal base of this stock suggests this stock will take further
discounts in price.

Remember stock fans I will not have a letter tomorrow or Thursday but will see you on
Sunday as usual.

Daniel J. Zanger

www.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 July 2001

Hello out there stock fans. On Tuesday of last week I suggested that the market might be
ready for a feeble rally as the NASDAQ had held an area of support. That area was a
retest of an area that the market rallied off two weeks ago at the 1940 area which I will
show you in tonight's chart of the NASDAQ. Then on Wednesday thru the Friday the
market and numerous stocks turned up with Thursday's rally being the strongest.

The NASDAQ is close to breaking out of a descending wedge formation similar to the one
that the SOX index broke out of on Friday. Should the NASDAQ break out of its wedge it
will then be free to traverse back up across the trading range to the 2250 or possibly 2350
area. I've mentioned here a number of times over the past two months that a long trading
range of many months would be very beneficial and healthy for the NASDAQ. This would
be similar to the long trading range of 1999 prior to the market running up some 2400
points. Here is the latest chart of the NASDAQ.

You may remember back at the end of June in one of my newsletters that I mentioned
that the market is historically strong from July 1st to July 23d. This year however the
market had a very strong sell off during this time but as you can see on the chart of the
NASDAQ the retest bottom came on July 24th just one day after the usual top is put in.
The point here is that July 23 is often a turning point for the markets.

1/5
As I mentioned above the SOX broke out of a wedge pattern. This suggests that the
Semiconductors are on the move. Here is a chart of the SOX index.

Here is a new issue that is ready to break into new highs. Revenues for this
semiconductor company that produces high bandwidth integrated circuits were up 115%
to $35 million while the company posted profits of 1 penny.

2/5
This company makes Particle beams for microscopes and other items. Earnings for the
last quarter were up 160% to .39.

This Optical equipment company just posted a very healthy increase in revenues. They
were up 619% to over $68 million.

3/5
This company provides contract research for Biotechs. Good earnings here along with a
Cup and Handle formation.

4/5
Two other stocks that are looking very strong and had extremely good earnings were
CTXS and GOTO. CTXS looks best on the charts due to its consolidation and GOTO just
rocketed from a sloppy low point and needs a few more days to rest before I list it here.

See you tomorrow.

Daniel J. Zanger

www.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 30 July 2001

Hello out there stock fans. Another ho hum summer day on the NASDAQ with one of the
lowest volume days of the year as traders find little reason to purchase stocks. Meanwhile
the NASDAQ drifts closer to the apex of the descending triangle which will cause the
NASDAQ to move sharply in the direction of the trend line that is broken when this line is
violated. These descending triangle patterns are generally broken to the upside as a
general rule.

Now on to some charts for the active trader. Here is a Biotech that is working its way
lower and could be ready to break down out of a wedge. This stock had a big run and
looks like its next stop could be the Fibonacci 61.8% retracement line that I’ve noted in
this chart.

1/4
This Biotech is taking its time deciding which way it wants to go but soon it should be
ready to lower in price. I had this chart last week but the stock failed to penetrate the
lower line but instead turned up. That up turn was short lived and now this stock is close
to making a decision as to its future direction which appears to be lower as of tonight.

2/4
This stock EBAY broke below a rising trend line I had for you last week with a gap down
on heavy volume the day after I had it listed as a short. The stock has found good support
at $59.80 twice and rallied up, but as you can see by today’s action the stock rolled over
and soon could take out the $59.80 support area which will be required if this stock is to
move lower. Therefore the next area to consider shorting this stock would be as it breaks
below $59.80 on a surge in volume.

Numerous other stocks are still rebounding from July’s sell off, so shortly there should be
some other stocks worth looking at as base rebuilding continues. Tomorrow I will highlight
CTXS, OPWV and FDRY along with a few others if the charts cooperate.

See you tomorrow.

Daniel J. Zanger

www.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 31 July 2001

Hello out there stock fans. Poor economic news today spurred a rally in technology
stocks that lasted until the last hour and a half of the day. Nevertheless many stocks
made slight progress with the semiconductor and networking stocks holding on to some
of those gains. Now on to some of the better looking charts in the market combined with
those that have some of the stronger earnings.

Foundry Networks (FDRY) has a very nice looking and very strong base that is tightening
up. This stock has resisted the sell off the past two months to create this nice horizontal
base. During better times in the economy this company could produce very substantial
earnings gains with many quarters in the .22 range and a modest P/E. When the market
turns around which may not be until the market can sense an economic turn around this
stock may be one of the stocks to keep tabs on. Here is it's chart.

OpenWave (OPWV) posted earnings that were up 467% to .11 with revenues that were
up over 153% to over $144 million for the quarter and up 10% sequentially. This stock
sold off hard over the past two months as have most techs amidst concerns of a slowing
economy. However this stock posted stellar earnings and said growth would continue in
the near future. This stock is also very market movement sensitive so if the market moves
up it should start to move aggressively as it has in the past.

1/6
Citrix Systems (CTXS) posted solid quarter over quarter and sequential earnings reports
this past quarter ending in July. Earnings were up 90% to .19 while revenues were up
39% to over $147 million. This company has posted revenues and earnings that have
been higher than each previous quarter for the last 5 quarters. In this economy this is
impressive for a tech stock and one of the very few to do it. The stock's chart is starting to
look impressive too and soon it will be even better and tighter looking as the days go by.
Here is the chart.

2/6
Goto.com Inc. (GOTO) One of the very few dot coms to still be an active stock and
earnings and revenue growth are the reasons why. This stock can be very frisky at times
as you will see by the chart with its multiple break away gaps that are a sign of power.
The stock is trying to put on a handle which would give this stock the classic 'Cup and
Handle' formation. Revenues for this quarter ending in June were up 198% to over $62
million and the company had a one penny per share gain vs. a loss of .13 this quarter a
year ago. Sequential revenue growth from last quarter is up 20% which again in this
economy is impressive. Here is its chart.

3/6
Here are three more strong stocks with great earnings. The first one (SMTF) broke out
during the day as I was marking up this chart. If this stock can hold this break out and not
fall back into the base this will be a very big plus for techs and this market.

4/6
Also BRCM is ready to break out with a buy point of $46 on volume if the market
conditions stay positive. CSCO, INTC and SUNW’s charts are looking better everyday.
Movement of these big caps is a must if this market is to get legs to run on.

5/6
Remember stock fans. The vast majority of stocks move with the market direction. Until
the NASDAQ can find its footing and start to move there will be no virtually movement in
these stocks listed above or any of the stocks I list. However when the market does get
going these stocks should be some of the more powerful movers in the market.

Now on to a stock to consider shorting in the Biotech area.

I will see you tomorrow.

Daniel J. Zanger

www.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 1 August 2001

Hello out there stock fans. A major brokerage house upgrades chip stocks today a week
after the SOX index has broken out of that descending wedge formation I showed you 4
days ago. This late call sent many chip stocks up to oversold areas where a rest of a few
days or more would be expected on the majority of these stocks.

The best news of the day is that the QQQ’s and the NDX have broken above descending
trend lines and next to follow should be the NASDAQ Comp. Since everyone and their
relatives are closely looking at this descending trend line on the NASDAQ one could
surmise that once we get through this line we could see a sharp rally to the 2250 area or
thereabouts. Here are the charts of these three indexes.

1/3
Leading sectors today were the Chips, Semiconductor Equipment makers and a number
of the Storage stocks which came to life after their most recent flogging at the hands of
EMC, VRTS, and QLGC. One of the better moves from a tight low level horizontal base
came today from MCDT which scooted well up over $2 on good volume. Now on to some
picks for tomorrow.

2/3
By the way NTIQ did well today clearing that base I showed you last night on a surge in
volume. Also doing well was SMTF which had fair follow through day from yesterday’s
break out which is a very healthy sign for this market and its stocks. Lack of follow
through has been the norm over the last 2 months of negative market behavior so today’s
action is considered good.

Here are some stocks for the active trader that seem ready to move tomorrow with my
technical buy points. Remember the market needs to be positive and volume on the stock
that’s on the move should be above average every half hour. MERQ at $41, SONS at
$24, VRSN at $57, NETE at $29, NEWP at $25, ONIS at $24.50, CIEN at $36, CTXS at
$36, CHKP at $47,

As you may have read in Maya’s report tonight, that after the bell PMCS will be added
with one days notice to the S&P 500 tomorrow at the close. This leaves little time for
institutions to accumulate this stock and park it elsewhere. This stock could have a
sensational day tomorrow if the shares to be bought are large enough. Generally the
heavy buying action gets underway one half hour before the close of the market so stay
tuned to this possible runner.

Some stocks that are showing some serious price movement combined with very heavy
volume are HLIT, ESST, POWI, RFMD, NTAP, PCLN, GOTO, GNSS. Some of these
stocks are too extended to consider right now but need to be parked in your AIQ or other
chart programs 'tag' list to monitor for their next entry point.

I will be back on Sunday with more market action and look to Maya’s report tomorrow for
any updates of stock picks that I might have.

Daniel J. Zanger

www.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 August 2001

Hello out there stock fans. The Bank of England lowered interest rates on Thursday
causing our markets to open sharply higher at the open and putting the NASDAQ above
its descending trend line. Unfortunately once the NASDAQ went over the trend line, no
one wanted to buy stocks as volume was far below its daily average at the first half hour
point and maintained low volumes throughout the day.

This below average volume at the open is a screaming warning sign that this was just
another morning head fake and prices surely would not hold. By mid day stock prices had
indeed reversed course and sunk back to levels where they closed the day before. More
of the same anemic behavior was noted on Friday as volume for many stocks was again
below daily average volume.

Many stocks in the chip sector have had good price runs of 8 to 10 points since the
market lows of July 23d and as I mentioned in last Wednesday’s letter are overextended
and in need of a rest. This rest might take us through the Fed meeting that comes near
the end of this month. By then most of the oscillators that I follow should read 'oversold'
and we could then have a decent rally once again. On the other hand numerous Biotechs
are still oversold and are moving up as you can see by the charts.

I would like to note that on a historical basis most big stock runs take place during late fall
and through the winter which means that market bottoms are put in August through
October which help facilitate this. I will say that numerous stocks have quickly run up
back near old high points that were put in back in the middle of May so now we are
getting closer to having many stocks with completed bases. It will take no more than a
few weeks for these stocks to finish their bases and be ready to move out. Let’s look at
some of these now as we will need to focus in on stocks hitting new highs if the market
does indeed get in gear.

1/4
2/4
Unfortunately for the market as a whole the VIX is getting down again to levels associated
with markets that either go nowhere or correct in price. The market performs best when
this indicator is closer to 28 or even better above 30. You can see on this chart that the
Options Volatility index (VIX) has quickly moved back to the low 20’s on this short market
spike up. People just love to buy calls at the wrong time.

3/4
I’ll see you tomorrow

Daniel J. Zanger

www.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 6 August 2001

Hello out there stock fans. The slowest volume day of the year on the NASDAQ and
second slowest day of the year on the NYSE as some traders vacation and others sit on
the sidelines waiting for tech bellwether Cisco System (CSCO) to report earnings
tomorrow after the bell. It seems many chip stocks have run up in anticipation of good
inventory depletion news from this company. It purchases chips from many chip
manufactures including Broadcom (BRCM).

If the CSCO conference call late tomorrow gives the news many expect, that inventories
are down, we could see a hefty rally in chip stocks come Wednesday. If we don’t hear
positive news from CSCO this market could see more downside action over the next few
days to few weeks.

Even though the chip sector is on the move with many of these stocks breaking out above
long monthly horizontal charts, most of the market is still very negative on the charts as
are many stocks. The DJIA, S&P 500, OEX and the NASDAQ still have lower lows and
lower highs in place. This market is in need of some powerful rallies to break this negative
behavior or lots of little up days over a longer period of time. Let’s look at some charts of
these indexes.

1/2
With such slow and meaningless days over the past few days there are really no charts
that could be of any value as of right now. BRCM does look good on the charts tonight as
does BRCD and a few others. Again the stocks I highlighted last night (MSCC, NVDA,
ISIL, along with RFMD which I did not show) I think are going to be good movers short
term after a few more days to a few weeks of basing out again. Hopefully by tomorrow
more charts will have moved to set up.

I’ll see you tomorrow.

Daniel J. Zanger

www.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 August 2001

Hello out there stock fans. Another anemic trading session today as the street was
unwilling to bid up stocks until Cisco Systems (CSCO) reported earnings and gave
forward guidance after today’s session. Maya has a complete update on this news and
news about two other stocks that reported after the bell in her Infocus Report that you
already have in your mailbox.

Since the NASDAQ has had a quick 8.5% move since July 24th it may take awhile before
this market can post any meaningful gains even though we might get a rally tomorrow
due to CSCO’s news. In the meantime it’s best to focus on stocks that are base building
so when the time does come for this market to get in gear we will be ready to purchase
the right stocks.

I have heard from a number of fund managers that communication chip demand has
increased recently. These stocks have responded well to this news and are seemingly
stuck near their recent highs. This is a good sign so let’s look at these again today along
with a few other good looking stocks with high growth rates. Again these are not ready to
go except maybe VRSN and FMKT which do have enough time in, but the market is not
yet friendly to pushing up stocks into new move highs right now.

1/5
2/5
3/5
Here are a few stocks that look like good short candidates.

4/5
I’ll see you tomorrow.

Daniel J. Zanger

www.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 8 August 2001

Hello out there stock fans. A decent start of trading today that lasted for about 2 hours
before heavy selling came in and caused major damage to most tech stocks and many
other stock groups as well. Not only did techs get a bloody nose but so too did other
groups like Oil Service stocks, Biotechs and numerous housing, financial and brokerage
stocks. This was a broad based sell off that caused wide spread damage to many charts
including most index charts as well.

The NASDAQ came within a few points from closing on its low of the day which would
have been worst case scenario for this index. However this major index is now just a few
points shy of breaching critical support that it held and retested just a few weeks ago. A
break of the lines that you will see in this chart should set this index to trade much lower
when it does. If it does break these lines we could be in for a retest of the lows set back in
early April.

Below you see the QQQ’s which held the trend line which was very positive until today’s
collapse below the line on a pick up in volume. A chart of the NDX looks the same and
both charts were highly constructive until today. All it would have taken was a sharp one
day move up with one day of follow through to get these charts even more positive.
Today’s breakdown will postpone a comeback for some time to come.

1/5
The DJIA too has a similar chart to the NASDAQ and a break of 10,150 could send this
big cap index much lower to a possible retest at 9100 that was set back in March. If this
happens it will be a very rough and tough September and October.

2/5
With such a quick reversal of fortune in today charts let’s take a look at a number of
possible short plays that are either in motion due to today’s action or about to break
down. First up is IBM which moves rather slow but could pick up speed once it breaks
below the line on volume.

3/5
Of course many of the usual tech stocks like VRTS, BRCD, BRCM, QCOM and many
others should continue lower over the next few days as well. Most of these stocks have
long daily bar spikes down with closes at or near their lows of the day which are
suggestive of further lows to come. All of these stocks are short candidates. Remember,
be very careful shorting now as we are close to support and you must be on real time full
time.

You may remember a few months ago I mentioned that the Biotechs as a group would
probably be done moving for quite sometime. Here is a snap shot of the Biotech index as
it appears to want to move lower in a classic 'stair step' fashion.

4/5
I’ll see you folks on Sunday. By the way the following Sunday there will be no letter as I
will be at the Online Trading Show in Orange County, California.

Daniel J. Zanger

www.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 12 August 2001

Hello out there stock fans. The NASDAQ broke support of the two trend lines that I had
for you in the charts last week on Friday. The major support level of these two trend lines
was at 1938, and as soon as this point was breached selling picked up with abandon. The
NASDAQ quickly hit 1919 where selling pressure mysteriously evaporated. With selling
pressure no longer a problem traders sniffing out bargains at perceived low levels jumped
in at the same time the DJIA bounced off 10,150 which is technical support that I showed
you on Wednesday of last week.

A buying spree quickly ensued and both indexes moved up sharply. The DJIA tacked on
over 200 points while the NASDAQ moved back above resistance which was prior
support at 1938. Unfortunately for both indexes lower lows still dominate the charts and
until this pattern of lower lows and lower highs is broken this market is still in a major
downtrend.

On a more positive note after nearly 6 days of downward price action on the averages (
NASDAQ, DJIA, SPX and OEX), my oscillators are very close to 'oversold' readings
sooner than I thought they would be. These oversold readings suggest we could be in for
a 'trading range' bounce this week sometime. Meanwhile the charts are trapped in a
bearish pattern of lower lows and lower highs, which you will see in today’s charts below.

1/4
2/4
You folks may recall two weeks ago I talked about the NASDAQ hopping over the
descending trend line at 2082 for a break out of that trend line to the upside. I mentioned
that once the NASDAQ got over that trendline stocks found almost no volume to support
this breakout and therefore the breakout failed. My question is now the same as the
NASDAQ broke support at 1938 and volume dried up at the 1919 area. Does this signal a
reversal to the upside? Stay tuned is all I can say. I’ve talked about a trading range of
some sort for this index for months.

The SOX index looks like it might have found support near its recent break out. With this
in mind and the fact that we are very close to oversold conditions here are some stocks
that look fair to trade if this market bounces this week, I would say that most of the
Semiconductor Equipment stocks look best. These include NVLS, KLAC, AMAT, SMTC,
and a few of the semis as well. ADI, TXN, MXIM look good here.

3/4
Due to the hard sell off over the past 6 days most of the charts have taken a beating
which means there is not much else to show as of today. In time more charts will set up
for shorts as well as longs. When they do I’ll have them here. See you tomorrow.

Daniel J. Zanger

www.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 August 2001

Hello out there stock fans. A very slow start to the day today as traders seemed unwilling
to step in and commit to stocks. Things changed later in the day as selling pressure never
materialized and traders felt more comfortable pushing stocks closer to new move highs.
In fact today there were a number of tech stocks moving into new highs which has been
very unusual to see over the past 2 months.

One of the better moves today came from a stock I’ve shown here a few times over the
past two weeks Intersil Corp. (ISIL) broke out early today only to pull back quickly until the
end of the day when it powered ahead and closed strongly on heavy volume. Other
stocks in this strong group are MSCC which is close to breaking out and OIIM which has
been running for sometime and a stock that will be close to breaking into new move highs
soon if it can hold up RFMD.

Before I get to a sector that may have turned the corner today and a few other stock
picks, I would like to say that the NASDAQ could be at a very important juncture in just a
day or two. As you’ve seen here on numerous occasions I’ve highlighted the NASDAQ
chart with its series of lower highs. The last lower highs were the false break out that
topped out at 2102.

1/5
This means that the NASDAQ will either fail on this rally attempt below 2102 and keep the
bearish pattern intact, or it will touch or break 2102 this time around. In other words we
could be just 120 points away from a break of this descending and very bearish pattern. If
we do break this pattern now this could send a slew of stocks much higher. This may be
why some stocks are starting to breakout now with some getting much closer to the break
point each day. Stay tuned.

Here are a number of stocks that are ready to move higher soon.

2/5
NVDA reports earnings after the bell tomorrow.

3/5
One interesting development today was that two Biotech indexes made a reversal to the
upside with both indexes breaking descending trend lines. One is the Biotech index itself
(BTK) and the other one BBH for Biotech holders Trust which I’ve chosen to include here
as it is tradeable like a stock.

4/5
Let’s hope we can get the NASDAQ back to 2102 this week stock fans.

See you tomorrow

Daniel J. Zanger

www.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 14 August 2001

Hello out there stock fans. The Bank of Japan buys more bonds which caused the Nikki
to run up almost 4% yesterday. This of course caused our markets to open strong except
for two very strong stocks. Intersil (ISIL) which broke out of its base yesterday found itself
being sold right off the bat at the open into the strength of the market. I mentioned
yesterday if this potential upturn in the market was to have legs, then this stock needed to
have follow through to the upside today. This would have been an excellent sign and a
poor sign that it didn’t.

Nvida (NVDA) behaved much the same as ISIL at the open on comments that proved to
be false, but could not recover lost ground all day. The point here is that when the market
is going to follow through on a potential upturn then leading stocks will lead the way.
Since these two very strong stocks were sold hard and fast at the open the message for
the day was loud and clear....this market is not moving up today.

Meanwhile in after hours trading NVDA is up $2.50 and near the trendline I had in last
night's letter. CCMP still looks very good from last night’s letter too and ISIL is still intact.
Folks you need to be quick and nimble on these stocks. NVDA could gap over the line
tomorrow and then reverse suddenly. Such is the market we are in now which is not new
to you I’m sure.

Tonight I have four other stocks to look at and three of the four I’ve had here recently.

1/4
2/4
The stock shown here had a topping pattern three weeks ago and if the stock hadn’t just
posted such stellar earnings it may have rolled over better. Check these numbers out
stock fans. They are very similar to what the Semiconductor stocks were posting last year
before that industry collapsed. Earnings for this past quarter were up 155% to .56 while
revenues were up 469% to over $3.1 billion just for the quarter. There are only about 30
million shares total on this company that does pharmacy benefit management services.
The stock exploded out of its descending base and might need a day to four days of rest
before it might move higher. At least it’s not a tech stock and might be a better play as a
result. This stock has a relative strength reading of 97.

There are only 16 million shares on this one and revenues are up over 160% to about $7
million. This stock is also very under owned by institutions. This stock has a relative
strength reading of 98.

3/4
Tomorrow I have to travel to get to the trading show happening in Orange County, CA.
this week end, so tomorrow's letter may be 3 to 5 hours late in getting to you. Also we are
working on getting the chat room back in action as the company that provides the server
to us is having difficulties. They hope to have it back up and running by tomorrow.

See you tomorrow

Daniel J. Zanger

www.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 2001

Hello out there stock fans. The market took a turn for the worse today after some folks
blamed a weakening dollar against foreign currencies. In reality stocks had a good
chance to rally when they were oversold and no one wanted stocks yesterday, and this
spilled over to today.

This week is also double witching options expirations and often times on Wednesday
before the Friday expirations many funds are rolling over options or unwinding positions
which can add to movement on stocks on this day.

Meanwhile the NASDAQ had its first closing day below support of that trend line I’ve
shown at 1938. Combine this along with the bearish charts of the S&P 500 and the OEX
and one can only assume that the next few months could be very tough sledding for all
the markets in coming weeks.

No on to some charts for tomorrow.

1/4
Of course most of the Semiconductor stocks took it on the chin today and rightly so as
none of them have reported a turn around so far, only a potential bottom.

2/4
Now on to some charts of the Indexes where we can see how bearish they are. With
today’s close on the low for the NASDAQ, it would appear that it’s headed for the lower
trend line at 1850. This is your basic water torture type of market.

I will say one thing that might be a ray of hope and that is that for at least the past 11
years all major bottoms in the stock market have occurred in the fall. These include 1990,
1994, 1997, and the last one in 1998. These charts suggest we could be headed down
that road again.

3/4
I will not have a newsletter again until Tuesday of next week. Anything special Maya will
have in her report for me. See you Tuesday of next week.

Daniel J. Zanger

www.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 21 August 2001

Hello out there stock fans. The Fed renders its anticipated .25 basis point decision on
interest rates today and the market renders its disapproval with its continuing series of
lower lows and lower highs. Today’s move should come as no surprise as all the major
averages except the DJIA had broken key support levels last week which were
highlighted here in their charts. Now that this news is out of the way we have earnings
warning season that starts in a week, so look for further erosion of investor confidence
which should exacerbate the current downtrend.

Meanwhile I’ve been looking into some historical data of the Presidential cycle in stocks
dating back to 1929 of all dates. This includes all 16 presidential elections with historical
data of what happens in the market during the year right after an election. Of the past 16
post election years starting in August the market has sold off 16 times. This is a pretty
good track record if you ask me. By the way the sell off historically has started around the
24 to 27 of August and ended approximately October 10 or so. Remember this is
historical data and not a prediction on my part. If you ask me the slide has already begun
and we are ahead of schedule.

Before we get on to some charts I would like to make one observation and that is with the
market so deeply oversold and the Arms Index or TRIN at levels that have called major
turns in the market for the past 30 years the fact that the market continues to sell off is an
indication of the severity of the weakness in this market. And this weakness comes in the
face of massive interest rate cuts. This exceptional weakness suggests much more
trouble and lower stock prices to come.

Now on to some charts of the indexes where we see that the NASDAQ is at the lower end
of the descending wedge and with todays close of its low of the day this index should
have no trouble breaking through it tomorrow.

1/4
2/4
Most charts have no patterns right now to show after two weeks of such a hefty slide, but
seems like most of the semiconductor stocks will continue to lower in price with little end
in sight going forward. Here is one that seems ready to lower and break support.

3/4
No telling how much lower these NASDAQ tech stocks will go, but if the market weakness
does continue through September and into October then we will all be shocked at how
cheap some of these issues will get.

See you tomorrow.

Daniel J. Zanger

www.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 2001

Hello out there stock fans. Today we saw many chip stocks gapping higher at the open on
a better Book to Bill chip ratio and news last night from Triquint Semiconductor (TQNT)
about meeting earnings expectations. TQNT also said it sees business picking up mainly
due to orders coming in from Korea. This news got an oversold market somewhat
excited. Surprisingly enough, this morning’s gap held throughout the day which provided
encouraging signs for many traders to buy these stocks up till the close.

Today’s NASDAQ action was the reverse of yesterday’s action which can be seen as
somewhat encouraging. Even though the NASDAQ did in fact move lower early on today,
the NASDAQ closed on the high of the day with expanding volume on many technology
stocks. In fact Broadcom (BRCM) traded two times its daily average and it closed up on
the day. Here is a chart of the NASDAQ with its descending wedge which one could say
is similar to the one the NASDAQ created back in April before it rallied up 700 points.

Last night I presented historical data about the Presidential Cycle dating back to 1929.
Tonight I will present another view that has come my way and this one is also very
interesting and I’ve been holding it back for this occasion. This view is that this year's
rallies are happening exactly the opposite of last year's rallies. You may remember that in
January 2000 the market sold off after a big run from November 1999 to the first of
January. This year the market rallied hard on interest rate cuts in January. In February

1/6
and the first of March 2000, the market rallied hard cresting at the top. This year the
market sold off hard during February and March. May and June of this year was nearly
the reverse of 2000 too.

If this reverse rally scenario continues then you may remember that starting September
first of last year the market had that double top that I showed you. We cascaded down
sharply from the point when the NASDAQ was at 4200. This lasted till December 2000
with all sorts of bad news from Intel and Nortel to help things plunge for the worst. If this
reverse scenario is to continue to play out then this market is set up to have a good rally
starting this September. Just like last night, this is not a prediction on my part, just the
news.

Now let’s get to some stocks that are starting to look interesting with today’s reversal.
Most of these need just a bit more time. CCMP acts and looks best and a stock I would
key in on first. QLGC has a double bottom but bottom fishing never is the best way to go.

2/6
3/6
Here is a good technical view of the SOX index.

Here are two stocks that I had here last week. Both are acting right and look very strong
on the charts.

4/6
Remember we’ve been saying now that the market has been oversold for about a week.
So far all rallies have lasted anywhere from 2 to 6 days before rally failure sets in. Treat
all movement in stocks accordingly and be prepared for such a failure if you choose to
buy anything. We are still in a bear market and all rallies are just a short term event. This
won’t change until defensive issues begin to roll over. See you on Sunday.

5/6
Daniel J. Zanger

www.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 August 2001

Hello out there stock fans. Cisco Systems (CSCO) and European electronics giant Dutch
Phillips Electronics (PHG) both stated during the end of this past week that the markets
for their products have stabilized. The market, sensing a bottom in the electronics
industry, bid up shares of such stocks along with a dose of short covering that had
numerous stocks closing on their highs of the day.

Meanwhile Biotech’s moved up sharply for three consecutive days which has allowed its
index, the BTK, to break above prior resistance as did its Holders Trust index the BBH.
The SOX index bounced off support and is heading back to resistance. All of this
happened while two interest rate sensitive groups Mortgage and Savings and Loans took
a beating on Friday due to strong housing numbers and the news from CSCO and PHG. I
mentioned on Wednesday of last week that if defensive groups would weaken this would
be good news for tech stocks and Friday that’s exactly what happened. Rotation out of
defensive issues could signal a possible bottoming of tech therefore money flowing into
them. Another good sign is that the brokerage stocks rallied hard with decent moves.

I also mentioned on Wednesday of last week that most all of the rallies that we’ve seen
this year especially since May are nothing more than two to six day wonders. Anytime
stocks spike up, this has spelled the end of its move. Not only on stocks but the indexes
as well. Having said all that, one can make a case for a market bottom based on items
that were present at other major bottoms. Today I have a few charts of the TRIN index at
the market bottom of the great bear market of 1973-1974 and one of today’s markets.
Only two times in history has the TRIN index seen levels as they do today. One is 1973-
1974 and the other is today. Not even the market bottoms of 1982, 1987 and 1990 saw
levels like today or 1973. These charts are weekly and not daily.

1/7
Friday did see a few stocks listed here move through buy points. CCMP moved very well
and right through its handle and the buy point of $76 to close the day strong on its high of
the day at $78.35. This is one of the few if not the only Semi related stock(s) to be at new

2/7
move highs. A very good sign. Now follow through is needed or this stock's move might
fail.

Anther good sign is that many technology stocks are exhibiting very high volume as these
stocks are reversing off recent lows. This looks to me to be capitulation type of behavior
as you will see in these charts. I also mentioned very high volume in BRCM on
Wednesday and as you can see this stock moved well since then.

3/7
4/7
Other stocks breaking descending trend lines that might be good for a trade are VRSN,
CHKP and VRTS to name a few.

Here are a few stocks hitting new highs with heavy volume with one (QCOM) hitting new
move highs out of a Cup and Handle.

5/7
I had this stock with this chart last Wednesday before it broke out and it’s acting very well.
This is one of the best tech stocks in the market right now if you ask me.

Since the S&P and NASDAQ broke down and went nowhere when they undercut support
recently I did a little research and found another time where this happened. The market
wound up moving up in that first occurence. The times were much different then but the

6/7
charts are somewhat similar. The time was just prior to the great lift off in 1982 and
interest rates were near record levels at 14%, unemployment was over 7% and stock
ownership was near levels not seen since the great depression. Only about 5% of
households owned stocks back then compared to around 45% today. Interest rates and
unemployment now are near record lows now too. In other words the opposite of what
was in 1982 that helped spike the market so rapidly then is not present now. The point of
this chart is that when a stock or index under cuts support and fails to fall then we are in
for a potential reversal which is what happened in 1982 and could happen today.

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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 27 August 2001

Hello out there stock fans. Another sluggish day today with almost no volume to speak of
during the first half hour of trading followed by decent volume for the next half hour as
stocks traded slightly lower. This lasted for another half hour or so until sellers became
exhausted and dried up and then buyers once again stepped in to push stocks back into
positive territory. This seesaw took place most of the day until the last fifteen minutes of
the day when sellers once again took control and prices dropped rather quickly on most
stocks.

Biotechs and some Ethical drug stocks led most of the day and resisted selling pressure
most of the trading day. However many of these stocks are extended from their recent
consolidations and should rest now or retreat some. Semiconductor stocks moved slightly
and one could make a case that what we saw today was follow through. This is important
to see if you're going to have a positive market. The move was very sluggish and volume
was a little on the light side so this follow through is suspect. More time is still needed on
this index and most of its stocks before any substantial move up can be seen. Only 15 to
20 stocks on the NASDAQ have decent bases working for them and we need many more
stocks to come around with better looking charts before we can see a successful lift off.

Now let’s move on to a chart of the NASDAQ and review it technically. On this chart you
see that the NASDAQ has hit two stopping points, one a 23.6% Fibonacci retracement of
the prior move from the May high to the August low. It also hit the old support point which
in now resistance at 1935. Both of these points just happen to be the same price. If this
index can’t move north soon this pause here below 1935 will create a nice roll over top.

1/3
Here is a stock that I’ve listed here many times. It’s back and could be ready to move if
the market can stay positive.

This stock I listed last week and it is one of the few technology stocks to move out of
formation.

2/3
QCOM did not fire today and will need more time I would say. Its 200 day moving average
line sits just above the stock right now at 67.40 and might be preventing this stock from
moving just yet. CCMP did follow through today but I would have preferred to have seen
more points posted on it by the end of the day today. ADXP listed here a few weeks ago
along with XCAR are moving well and acting well. Both of these are making new highs
which is a good sign for growth stocks and the market.

Very few stocks right now have patterns to show but maybe tomorrow there will be more
stocks to list. I’ll see you then.

Daniel J. Zanger

www.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 August 2001

Hello out there stock fans. I mentioned a few days ago that since the NASDAQ failed to
break below that lower trend line that we might be ready to bounce which we did. I
mentioned too that the rallies that we’ve seen since May have lasted no more than 2 to 6
days and that’s exactly what this one did as it lasted about three days before news out
today started a hefty sell off. Today’s sell off brought all indexes back to their lower trading
range once again and puts the DJIA within striking distance from closing below support.

Here is a chart of the DJIA on a daily bar basis and it shows the descending top trend line
and a lower support line. A close below this line and this index could be marching lower
for the next few months. By the way, the Presidential cycle that I wrote about last week
historically gets underway this week as per the past 16 cycles dating back to 1929.

Should this happen I have a long term chart of the DJIA and the S&P 500 based on
closing prices for the past 7 years. Here you’ll see the large parabolic curve that both
indexes broke sometime ago. As a result both indexes are now trying to find a bottom and
hopefully these two indexes won’t take a beating like the NASDAQ has in correcting.

1/5
On these charts I’ve placed Fibonacci lines from their breakout points at the start of their
parabolic runs. Here you’ll see a number of retracement areas where support levels could
be found. You can see that the S&P stopped right at the .38% retracement area on its
lows set back in April. I will admit I do not have the beginnings marked exactly so my lines
could be off by a hundred points or so on the DJIA and maybe 15-30 points on the S&P
500. At any rate you get the gist of what’s going on.

2/5
The other day I showed a few stocks that showed signs of capitulation such as BRCM
and EBAY. If these stocks can’t reverse from this capitulation buying area and the stocks
turn and move under that area then the folks that did the heavy buying are now
underwater. These recent buyers could now become fresh new sellers which could add
selling pressure to these stocks. Both EBAY and BRCM are nearing those points with
EBAY closing right on the low of the day at the bottom of the range today.

3/5
Here is a chart situation that should yield lower prices.

Until lower highs and lower lows on all of the leading indexes have vanished, this market
will continue to make Bear tracks. Since most market bottoms are put in during the fall,
the next two months presents itself with an excellent opportunity to rid ourselves for many
years to come of this nasty and historic bear.

See you tomorrow

Daniel J. Zanger

www.Chartpattern.com

P.S. Here is a good site for active traders to read about the active traders psyche
including myself.

Http://www.Innerworth.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 29 August 2001

Hello out there stocks fans. All major indexes hit new move lows today except the
NASDAQ thereby undercutting support once again. The DJIA closed at its lowest level
since April of this year as did the S&P 500 and the OEX. As a result if this, look for further
lows to come on all indexes over the coming months. Looks like the Presidential cycle is
at it once again and like I mentioned last week, this cycle is not due to end this downward
bias until the start of the second week in October.

Hopefully we can get all this realignment of value and growth back to a point the market is
comfortable with and we can once again get on with the show. In the meantime there’s
lots of pain to come for many. This will change investor psychology that should have a
lasting impact for many years to come. 'Buy the dip' will not come back in vogue for many
years to come.

Today I have a couple of charts on the major averages that show some channel
formations for the OEX and the S&P 500. For the DJIA I have one which shows what is
called a measured move. In a measured move, the distance of the first move can often be
followed by an equal move of the second movement after a period of consolidation such
as we are leaving now. Since the DJIA moved about 1100 points down from 11,300 to get
to its most recent resting area then the second move can often be followed with an equal
move on its second leg. This applies to stocks quite often and sure as heck might apply to
this big cap index on this move. So since this new leg down started at about 10,200
deduct 1100 from that and you get a DJIA that could stand at 9100 by the second week in
October.

1/5
2/5
Now on to a chart of the NASDAQ and here we can see potential trouble. Of course, it's
not as if we haven't been in it for a long time, right? However the charts remain very
bearish and suggest we could move much lower sooner. I will say however that the
NASDAQ did hang tough today considering the trouble on the big board and it felt like it
wanted to turn up.

I would expect a rally tomorrow if the European Central Bank (ECB) cuts rates by a
quarter point and an even bigger rally if it cuts it by 50 basis points. This would help out
the charts for a day or two but then they would probably return to making Bear tracks
after that with the way things are going.

3/5
Last night I posted a good chart of what turned out to be the biggest loser on the day
today. Verisign (VRSN) collapsed $5.95 on very heavy volume and it undercut all support
areas and closed the day at $38.69. This stock still looks like it could move much lower
over time. However you might want to lock in some profits if you shorted this stock here
just in case.

4/5
I find there are no stocks that have any real meaningful charts to show tonight. But by
Monday I should have many more to go.

See you on Monday as this weekend is a holiday and there is no trading on Monday.

Daniel J. Zanger

www.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 3 September 2001

Hello out there stock fans. The market reacted strongly last week from the bad news out
of Sun Microsystem (SUNW) and gave no weight whatsoever to the lowering of interest
rates out of the ECB late last week. The markets’ free fall has now brought the leading
indexes to rest at their lower trend lines where they might find enough strength to rally
from for a day or two. After a minor rally these indexes should precede lower over the
next few weeks.

Here are the charts of these leading indexes

1/4
Now on to some charts of stocks on the move for one reason or another.

This stock is under heavy accumulation as you can see by the heavy increase in volume
as this stock moves up over the past few months.

2/4
This stock has a P/E of 30 and growth about the same.

This bank stock is just breaking down but is oversold right now.

This stock has very good earnings and a P/E of 12 with good increases in revenues. They
are involved in digital content management solutions.

3/4
Remember folks this market is still very weak and still very bearish. It will take time before
this market heals its wounds.

I’ll see you tomorrow.

Daniel J. Zanger

www.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 September 2001

Hello out there stock fans. A massive bear market head fake today as stocks rallied on
the NYSE and to a lesser degree on the NASDAQ only to give most all of it back by the
end of the day. The NASDAQ in fact gave back all its gains and plunged another 34
points to close in the red on the day.

Tech stocks that were acting fair during the summer like QCOM and NVDA got
hammered at the end of the day after being off just fractionally during the day. NVDA
closed the day down almost $6 while QCOM dropped over $4.50, both on very heavy
volume. In fact most tech stocks were trading heavier volume today with fractional gains
till later in the day. It wasn’t until the last hour of the day when prices collapsed with a
vengeance.

This collapse caused most stocks to close on their lows of the day with many of them now
at support areas or pivot points. This means that should we move lower by just a point or
two on these, this should trigger the pivot points and send these stocks substantially
lower quickly. Let’s look at a few of these which also pose some trading possibilities.

1/4
2/4
Really folks all of the tech stocks are heading lower and shorting most of them might be
best at this time during this month. Other stocks looking to lower in price tomorrow are
VRTS, PMCS, KLAC, NVLS, CIEN, MERQ, NXTL, MU, and CSCO just to name a few.
Here is a chart if the NASDAQ suggesting lower prices tomorrow.

3/4
Meanwhile Biotechs held up very well and once this downward pressure ends, this group
could possibly emerge once again due to the lack of earnings coming out on technology
stocks. Here is a list of bios that are trying to break out in this difficult market environment
listed by tick only at this time. Many of these stocks have little handles on them like GILD,
CEPH and IMCL however this market is not yet rewarding stocks that break out. PDLI,
GILD, IDPH, GENZ, VRTX, MYGN, FHRX, AVIR, IMCL, MEDI, CEPH, CBST, CELG,
ABGX, and SEPR.

Well it looks like the Presidential cycle is winning out once again. This cycle is due to
finish the downward thrust in the second week in October. Based on historical charts I’ve
analyzed dating back to 1929 the market has moved up briskly through December with
two exceptions. One was early WWII and the other was the early years of the great
depression.

See you tomorrow

Daniel J. Zanger

www.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 September 2001

Hello out there stock fans. Another hard sell off on the NASDAQ with this index hitting my
lower trend line set in yesterday’s newsletter at 1716. Once this level was touched the
NASDAQ along with the other major indexes rallied from the depths and moved back up
to about where they opened today.

Volume is of special note today as many stocks had close to record volume yesterday
and today. Since this volume took place with stocks closing lower on both days this would
be considered distribution and a negative. On some of these stocks it could be some form
of capitulation with BRCM coming to mind, but more time is needed right now to verify
this. Much of what we are seeing is tax loss selling by the institutions which in all
likelihood won’t end for another 7 weeks.

Meanwhile the NASDAQ is tracking out an inverted parabolic curve. The top of the
pattern starts back at the market point of around May 7th with a big spike around May
21st. We have basically been in a downtrend since with acceleration of this trend since
the second week of August. This pattern is now about 4 months old and ageing daily. The
massive parabolic curve that the NASDAQ created in the bubble lasted from the middle of
October 1999 to the blow off top of March 10th. A 5 month parabolic curve.

If this is any indication of the length of a parabolic curve, which for many stocks can be,
then this suggests that we would have one more month of this. This by the way would
coincide with the market bottom that the Presidential cycle has forecasted as the market
bottom which would be around Oct 10th through the 12th. Generally but not always at the
top of a parabolic curve you have a large spiking move up that signals the end of the
move. Could it be we get a large spike or gapping move down that will signal the end of
this move? Stay tuned. Here is the chart.

1/6
Now on the DJIA we see what could be support for this big cap index as heavy volume
seems to be supporting this index at these levels.

2/6
Yesterday's stock selections that I picked to move lower, worked out very well today with
many of them dropping up to $4 during the day like VRSN. CCMP, VRTS and BRCD were
also very weak and lowered in price nicely. However the late rally cut some of the gains in
half. One of these picks from yesterday is acting like a pest at these levels and seems to
find quite a bit of support as it attempts to breakdown. Broadcom (BRCM) has the highest
volume since March and it seems to have a friend with deep pockets watching over it.
Maybe best to avoid this one for now as this is the second time it's found volume to
support it at this level in two weeks. Having said that, watch this stock cave-in tomorrow.

Now let’s see the SOX index which broke some support today. Here is a weekly chart of
this 'hoped to be leading' index. Longer term it’s holding ok but has lots of pressure to
move lower. The 515 area seems to be the support area right now. However with the
outlook right now so bleak it seems remote that this area could hold.

3/6
Now on to various charts of stocks that have patterns suggesting lower prices to come.

4/6
Here is the CBOE tech index and it has retested and even undercut its April lows.
Undercutting of the prior lows is desired to shake out the weak holders. But will it hold
longer term?

5/6
Things are still really bearish and negative and I suspect for the NASDAQ at least they
will stay that way until at least the first wave of earnings come during the second week in
October. No longs right now folks.

By the way it looks like I will finally take a vacation after not having one in almost two
years. I am looking at the last two weeks in October right now and will firm up the dates in
a few weeks.

I hope to post a small report tomorrow. See you then.

Daniel J. Zanger

www.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 6 September 2001

Hello out there stock fans. The market continues its free fall with all of the averages
continuing their slide in earnest today. The charts suggest more damage is on the way
very soon and probably as early as tomorrow as the S&P 500 sliced through its channel
line today which says an acceleration of the decline is on the way. The DJIA closed at the
lower end of this pivot point which also suggests that it too along with the NASDAQ is
headed lower probably as early as tomorrow. Here are the charts.

1/4
One good sign setting up is that the VIX and its NASDAQ counter part the VXN spiking
up as fear noted in the options market is moving up to levels with those associated with
the market. Here are their charts.

2/4
Only one chart to look at tonight as most stocks are very extended down right now.

3/4
See you on Sunday.

Daniel J. Zanger

www.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 9 September 2001

Hello out there stocks fans. Numerous indexes touched springtime lows on Friday
including the OEX, S&P-500, and the NASDAQ 100 known as the NDX. The S&P-500
index touched within a point of its March low of 1080. As soon as this index touched this
point NAS technology stocks got a boost and proceeded to close up fractionally for the
day. However I’ve seen a number of blast offs from retests and this one ranks as the most
anemic of all unless something spectacular happens within a day or two.

1/5
The market is deeply oversold on the oscillators and our fear indicators the VIX and the
VXN are approaching areas that are typically associated with market bottoms. Within a
few more weeks we could see a large spike in these indictors which would show that

2/5
panic has arrived in full force. This I believe is one of things the market is waiting for
before a solid bottom will be put in.

Meanwhile stocks and groups that have been performing well considering the market
have taken a beating over the past few days. From healthcare to retail including
discounters to construction and trucking, Banking and credit card companies. Even
brokerage stocks which can at times be in front of trends, broke minor support and into
new lows. There is no group that can hide from the carnage that is underway in this great
bear market.

Now on to some charts of a few stocks that are attracting heavy volume at these levels.

3/5
Due to the beating that the market has taken over this past week there are no other
charts that appear like they want to move lower and of course no charts of stocks that
one could easily say want to go up with any safety. This means that I have no other charts
to highlight today. However we should have some in a day or two.

4/5
Remember most market bottoms are put in during the fall months and this one looks like
it is falling in line with history so far. Also remember nine out of ten bear markets last no
more than 2 years. This bear is 17 months old so everyday that passes brings us closer
to putting this bear back into hibernation.

See you tomorrow.

Daniel J. Zanger

www.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 10 September 2001

Hello out there stock fans. The DJIA made new move lows today along with the S&P 500.
This action caused the VIX to spike up to over 37 during the morning and it’s now closer
to what we like to see on this fear indicator. A mid-day recovery lifted most indexes back
into positive territory and this recovery could set the stage for a rally that would probably
be rather lackluster.

Let’s look at a number of stocks that might see a few points of upside should a rally get
underway. I say this because the market is so deeply oversold right now however no one
is in a buying mood.

1/3
Let’s take a look at the VIX as it moves in the right direction. Even though it's been much
higher than today’s value numerous times in the last 20 years, today's spike puts it close
to its recent highs of the past three years.

2/3
Once again due to almost no movement in the market there are virtually no charts worth
showing tonight. Please note however that periods of low volatility are followed by periods
of high volatility. After this market finds its bottom and everyone is asleep at the wheel this
market could easily get up and run. Hang in there it’s just a matter or time.

See you tomorrow.

Daniel J. Zanger

www.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 September 2001

Needless to say, in light of the horrific tragedy today there will be no Chartpattern or In
Focus report tonight or tomorrow. Trading is suspended and the stock market will stay
closed at least through tomorrow says the S.E.C.. U.S. stocks trading prominently in
Europe are down across the board, including Microsoft down $5.43, GE down $2.81, IBM
down $6.85.

Our sympathies and thoughts go out to all involved.

Dan 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.

1/1
Archive newsletter
chartpattern.com/archive-newsletter.cfm 16 September 2001

Hello out there stock fans. It is with great sadness and regret that I write this column
today as nothing said here can in any way bring back those that have lost their lives and
loved ones in this historic and devastating tragedy. However this country will rebuild and
come out much stronger as a result and our lives will and must go on.

As we all know the stock market is scheduled to reopen this Monday after a four day shut
down. History has shown us that when events of this magnitude have occurred i.e. Cuban
missile crisis, Pearl Harbor, President Kennedy assasination and the Russian financial
collapse and others, the stock market has sold off initially with varying degree, magnitude
and length of time only to see the market as a whole rebound within a few weeks to a few
months. Many of these rebounds by the way were extremely powerful such as the one
after the Russian ships were turned away from Cuba and headed home and after the
Feds cut interest rates here at home after the Russian debacle of 1998.

On Thursday and Friday the Bond market traded on light volume. Bonds, especially
shorter term maturities spiked to levels not seen since the Russian bond collapse of 1998
with our two year note hitting record levels on Friday. Since Bond prices have an inverse
relationship to yields, this means that yields dropped to incredibly low levels. The two
year note was yielding 2.82%, the 5 year note was yielding 3.79% and the 10 year was at
4.54%. This by the way is a great opportunity for refinancing higher mortgage rates.

Bond yields this low should have a powerful stimulative effect on the economy just as
they did in October of 1998. It took less than one year for these low rates to work their
way through the economy. As we know from the market lows of 1998 the economy took
off with earnings on tech companies soaring in 1999 through 2000 which in turn gave rise
to the massive stock market bubble. This strength in the economy also gave us the
lowest employment rate since the mid 60’s. The only ingredient not in the mix this time is
$12 per barrel oil. However this ingredient may be substituted somewhat by the heavy
spending to overcome this tragedy of which some $40 billion alone was approved this
past week with much more spending to come to combat this sickness here and overseas.

A big question is, at the time our government finds a definite target to attack and
prolonged fighting ensues, will we see Americans staying home like they did during the
gulf war? This Stay at Home behavior will cause heavy damage to retailers, hotels,
airlines, restaurants, theaters, casinos and everything that the consumer does during
normal life. This will deepen and prolong our recession and the eventual recovery.

It was widely reported during the week that the Fed is taking an active role in getting
many companies with stock buy back programs to begin actively purchasing their stock
come Monday. This will hopefully help to support the stock market. Cisco Systems even

1/2
announced a $3 billion stock buy back this week. It's even been speculated that the Fed
will cut rates as much as 50 basis points sometime during the day on Monday. This 50
basis point rate cut is needed since the market was already sinking with the knowledge
that a 25 basis point cut was in the offing come the Fed meeting in October.

Of course should a rate cut come on Monday it probably would not happen first thing
Monday morning. An exception to this would be a global event in which most leading
economies of the world coordinate a rate cut together. I would suspect that by mid day or
thereafter short sellers will enter all of their short positions at low levels. We could then
see a rate cut which would effectively trap those who just shorted. This could result in
buying fuel to lift the market.

My biggest stock market concern is that many of the major indices have just tested and
held double bottoms from the March and April lows. Monday’s widely anticipated break in
the market will break these areas and this alone could trigger many more shares to be
sold over time by those institutions that trade on technicals. This could greatly exacerbate
a sell off and could extend the markets downdraft for weeks after a rate cut comes in. It
would also prevent many institutions that are technically inclined to hold off from buying
shares until they get a technical buy signal which would be weeks if not months from now.
At any rate I’m hoping for the best come tomorrow and the following weeks.

I suspect it will be days before the anticipated chaos and wild gyrations of the next few
days come to rest and there will be stocks worth looking at for trading.

Daniel J. Zanger

www.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 17 September 2001

Hello out there stock fans. A 50 basis point rate cut in Europe, Canada and at home
today before the stock market opened, did little to satisfy those that wanted to sell today.
At the very least, this helped to prevent a much greater sell off in the equity markets
today. All markets here opened with a sizable gap down and then after a few hours of
stable trading attempted a feeble rally which quickly failed. The market then moved lower
and went on to close at the low of the day on very heavy volume. As you know a close on
the low of the day strongly suggests lower lows to come tomorrow at least in the first few
hours of trading.

Of note today was that our volatility indicator the VIX, and the NASDAQ’s version the
VXN, spiked up hard at the open with the VXN hitting what must be a record 99. The VIX
hit 47 which is a three year high, but not a record by any means. Also worthy of noting
was that new lows on both the NYSE and the NASDAQ expanded to over 400 today. All
of the numbers I’m highlighting here are numbers that you can usually find at exhaustion
points of market bottoms. This suggests that even though we may not be at the bottom
today we should find a bottom within a week or two.

As promising as all these indicators for a bottom are, the negative is that all technical
support levels on the all leading indices and many indexes of leading groups were taken
out today on extremely heavy volume. This implies that we have much further down to go
in price. The only thing that could rally this market sharply now would be the capture of
the world's most wanted criminal. His capture would cause this market to rocket with likes
we’ve not seen in a very long time.

Here are some charts

1/3
As far as stock selections for shorting stocks tonight I can find no stocks that didn’t gap
and spike down. Trying to short stocks that have already gapped down with large moves
is not something that I can recommend. Also if we can take a cue from European markets
which behaved in a similar manner, trying to short stocks the day after a large gap down
proved fruitless. In the European Markets you saw a 6-8% gap down the first day,

2/3
followed by a day where prices were unchanged or slightly up. I will say however, that
EBAY seems to be moving lower and the chart appears to indicate it has further to go
down.

In time more stocks will rest or snap back and there should be many stocks to look at
soon. Also note that many stocks are below their lower trading bands which makes them
very vulnerable to snapping back. See you tomorrow

Daniel J. Zanger

www.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 18 September 2001

Hello out there stock fans. The stock market continues its heavy sell off today even
though the indices suggest with their minor price movement, that today was a light down
day. In fact it was another tough day on the streets with many stocks and groups taking a
beating. Financials, Energy, Retailers, Biotech’s, Semiconductors and many other groups
continue in a free fall with no sign of help in sight.

The stock market hates uncertainty and until this very heavy cloud that has been cast
over the market and our economy is lifted, this market will be unable to find any traction
and more likely than not might continue its slide. This was the case you may remember
when the Presidential election was undecided last year and the market suffered badly for
weeks until a winner was declared. Until this veil is lifted expect the same behavior from
the markets.

One of the more negative events of the day was announced after the bell. Mr. Greenspan
will have a surprise meeting with the President tomorrow afternoon. My guess is that
something serious is amiss or in need of heavy tweaking in our banking or financial
system. This too will add uncertainty to the already shaken equity markets.

Now on to some charts of stocks that are rolling over.

1/4
Here is a chart of the DJIA, S&P 500 and the SOX index. All are showing markets that
are battered yet way below their lower trading bands. This suggests a bounce might be
attempted soon.

2/4
3/4
Again after a wicked break in the market I find it tough to suggest shorting stocks as they
plummet down. The possibility of a snap back trapping you is too great. In time more
stocks will set up and I’ll have many more to list. I will say one thing; stocks are getting
back to levels where they were at the bottom of the break in 1997 and the beginning of
1998. When the market does get in gear, and it will in time, we will see much bigger
percentage moves in these stocks as a result of this tremendous discount.

See you tomorrow

Daniel J. Zanger

www.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 September 2001

Hello out there stock fans. In this past Sunday’s letter I talked about wild gyrations coming
up in the stock market and it’s been nothing short of that. Today we saw another heavy
down day on very heavy volume once again. With the markets so far below the trading
bands right now, it’s imperative to get the market back up above these bands quickly or
as many of us have seen over the years, when a stock can’t quickly get above the trading
bands then that stock continues to sell off hard and long. I’m afraid that this might happen
to our markets if the markets can’t get above these bands in the next day or so. Here are
the charts with those bands.

1/5
Real value is now coming into play as the market cascades down and that’s when the
market usually starts to find real meaningful support and not some trend line that dates
two months or two years. Can you imagine the SOX index hitting new 52 week lows today
and at levels not seen since very early 1999? This index and its stocks were still reeling
from the collapse of their markets from the 1997 Asian crisis back then. It took two years
for the chip market to return.

The world’s population is larger now and so is the market, so one could extrapolate that
these stocks are fairly valued at these levels which is just above the 1999 level. You bring
in another group of players when stocks get this cheap and these are the value players
and their hoard of cash. These players will be buying down here and it’s these players
that will support the market at low levels. Here is the chart of the SOX and it looks a lot
like the Internet index did last year. This chart is a compressed weekly chart.

2/5
As you may remember back in the Gulf Crisis it took about 5 months for a build up of
troops before the bombing started. The whole time the troop buildup was underway the
economy suffered and the stock market dropped 20% from its highs. The market
bottomed 3 months into the build up and was starting to inch up two months prior to the
first bomb being dropped. But when the bombing started the stock market soared for a
few days and the massive Bull market of the 90’s was underway in grand style. As soon
as we start taking military action or if Bin Laden is turned over, I suspect we’ll get a very
strong rally in the market the day this happens. This is why the markets rallied today
when news about Jets arriving in the Middle East set off today’s short covering rally.

There is talk about a market bottom being put in today. For sure the VIX indicator is
signaling we are close and volume is extremely heavy, in fact at record levels. Another
huge volume day with the stock market closing at or near its high of the day combined
with the day’s price movement on the Dow moving up 300 points or so and it will look like
capitulation has been put in. Here is the VIX with its multiple topping like formation.

3/5
Before this tragic event occurred I showed a chart of this stock with a capitulation bottom
and believe it or not this stock has not lost one point this week. In fact it moved up
strongly today. This is a tip off that this stock probably could be one of the first stocks to
buy when this market turns more positive. Another stock that has held up well is R.F.
Micro Devices (RFMD) both of these stocks have good charts.

4/5
Here is a list of stocks that are deeply oversold and are good candidates to bounce on a
market rally. No buy points now, just that they may bounce and good luck. PSFT, IBM,
QCOM, PMCS, BRCM, PLXS, PLAB, BRCD, CA, GS, GMST, GLW, GENZ, FEIC, EPIQ
and EBAY.

See you tomorrow.

Daniel J. Zanger

www.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 23 September 2001

Hello out there stock fans. Thursday evenings’ speech to the nation by President Bush
combined with Triple witching options expirations forced the DJIA to open Friday with a
massive gap down of over 250 points. All other indices had large opening gaps as well.

Technically speaking, a large gap after a run up or down in price often signals exhaustion
of that directional move is near. Another potential plus, Fridays trading saw the opening
gap down quickly filled on the DJIA as the market traded up on good news from GE about
profit growth. Filling of the gap is technically good as it adds further technical credence
that the trend direction is close to changing.

Also oscillators that I track have hit historic lows this week. Each and every time over the
past 40 years that these oscillators have hit these low areas it has proved to be a major
bottom and turning point in the market. This only means we are at or very near price lows
though we still need retesting of the lows if the 8000 area on the DJIA is in fact going to
be the low. This retesting will come over the next two weeks to maybe two months. In the
meantime we should be able to see a 38% to possibly 50% retracement of this down leg
from 10,200 to 8000.

A 38% retracemnet of the 2200 points down from 10,200 would put us back at DJIA 8800
and a 50% retracement would put us at 9100. After this happens, and there is certainly no
guarantee that it will, look for a another surge down to at least 8000. We could even see
7750 or so to clean out the weak holders. This 7750 number would be 38% retracement
of the move that started on the DJIA when it broke out from its 15 year base at 1000 that
started this move in 1982. Remember the DJIA based for 15 years and made no progress
from 1967 to 1982. It appears we might be in for a long basing period once again.

A number of other items that technicians like to see at market bottoms happened this
week as well. A Put/Call ratio of 1.2 Puts sold for every Call shows extreme fear. This is a
record for this indicator. The VIX indicator also hit the highest recorded levels since the
crash of 1987 this week when it touched 57. Volume behavior was climactic in nature this
week which shows that the baby was in fact thrown out with the bath water. There are
many other items to list but I think you get the point.

All of the above are the positive technical indicators for a market that is ripe for a bounce
along with major market lows that might have been put in. The negatives are a market
that refused to bounce when it should’ve on Thursday back up into the trading bands.
This failure to quickly get back into the bands has never let us down in predicting much
lower lows to come over at least a two month period of time. Another negative for a
rebound is the stock market is still trading at the high end of its historic P/E trading range.

1/4
For the DJIA to get back to its 100 year median P/E of about 15 the DJIA needs to lower
in price to 6000. Currently the P/E on the DJIA is at 20. This 6000 is based on the current
trailing P/E and not a potential lowering of this P/E due to worsening economic conditions.

This week’s close is also the first week in well over 10 years that the DJIA has closed
below its 50 month moving average line. On this monthly bar chart you’ll see this line and
the DJIA closing below it. Also take a close look at the monthly volume at the lower end of
the chart. Here you’ll see high volume for over 1 year with no appreciation in price. This
shows quiet liquidation has been underway for quite sometime. This volume is a huge
negative for a sustainable market rebound anytime soon.

Here is the SPY chart which is a trust that tracks the S&P 500. It looks like a floor might
be here now. Again I say 'might be' because these events are so unusual this market
could swing hard either way on news of the day.

2/4
Here is a stock or two that is exhibiting strong support at low levels. This is typical of what
support should look like after a hard sell off. This does not mean these are a buy now.

3/4
Things are so turbulent right now and so deeply oversold I can find few stocks worth
looking at right now to short or go long on. Clearly one has to read the market hourly and
hope for the best. And with that 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.

4/4
Archive newsletter
chartpattern.com/archive-newsletter.cfm 24 September 2001

Hello out there stock fans. A powerful snapback rally today on volume that was slightly
lighter than most days last week. Still the point gains of 367 for the DJIA and 75 for the
NASDAQ were impressive. Impressive as today’s rally was, we more likely than not are
only setting up for a retest of the lows made last week as noted in my letter of last night.

Many groups participated in today’s sharp rally from historic oversold levels except the oil
and the Biotech stocks which moved lower. Numerous bellwether stocks continue to
exhibit capitulation behavior. Intel (INTC) and Microsoft (MSFT) are two with classic signs
of this. It can be interpreted as good news that we appear be moving in on finishing the
bottoming process. Let’s see what this capitulation looks like.

1/3
Other stocks with excellent capitulation patterns are GE, NVLS, MMM, GNSS, HD, IBM,
JPM, KLAC, KRB, LEH, MMC, and the OTC and the DJIA just to name a few.

2/3
By the way a few alternative energy stocks once again moved up sharply today following
through on a decent move from Friday. The last time the markets bottomed back in March
and April many of these stocks took off along with many others. FuelCell Energy (FCEL)
which was listed here with a very low buy point ran to 100 before it split 2 for 1. It will be
interesting to see if these stocks can try this again. I doubt it, but keep on eye on them
just in case. Here are the tick symbols of a few just in case. BLDP, FCEL, and MDTL look
best at this point.

Again as soon as the DJIA or the other indices retrace 38 or 50% of this snap back look
for all stocks to start to weaken and become susceptible to a rapid sell off.

There are really no stocks to list tonight for short term trades, but in time there will
certainly be quite a few as a result of these violent moves. See you tomorrow.

Daniel J. Zanger

www.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 September 2001

Hello out there stock fans. Poor price progress today on the major averages considering
volume was fairly heavy yet lighter than the past 6 trading days. The NASDAQ could only
tack on a little over 2 points as volume exceeded 2.1 billon shares today. This sounds like
selling into strength was taking place. The DJIA tacked on just over 56 points and saw
volume hit only 1.6 billion shares.

Anytime a stock or the averages spike up as we are potentially seeing on this move up
signals a short play is setting up. This will help a new descent to further lows or a double
bottom test. Either way these stocks are not ready for us yet until a retest is complete.
Here’s what I’m talking about.

You will be able to find this pattern in almost all stocks that have cratered in price over the
summer.

Clearly it’s going to be many weeks before the charts set up properly and signal long
positions might be at hand. What does a good looking chart look like you might ask? I can
tell you it’s been almost 2 years since any of us have seen any, so I thought I would bring
a few up from the archives to refresh our memory.

1/6
Here’s the same stock 35 days later. Notice the tight horizontal chart prior to it blasting off
on the chart above. This chart basically shows the move the stock had from the chart
above. This is what we need to see before most of these stocks can have a successful
move again. These stocks were listed here before they ran and like so many others can
be found in the archives of this web site. Just type in the symbol like QCOM, YHOO,
CMGI etc.

This stock I had with a buy point of $17.50 and it ran to $97 in 7 months and then split 3
for 1. It’s now a $4 stock post split. Another NASDAQ round tripper.

2/6
This stock tightened up as it descended to correct then blasted off to $220 after it crossed
the trend line in 10 weeks.

The point is that the chart patterns tighten up before the stock lifts off. This tells me that
after we bottom we need lots of horizontal work before stocks can have a successful
move up once again.

Now on to some stocks that appear in deep trouble.

3/6
4/6
I’ll see you tomorrow.

Daniel J. Zanger

5/6
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 September 2001

Hello out there stock fans. A reversal today on virtually the same volume as the day
before but with greater point loss. This signals that bears are once again in control. Also
take note from yesterdays chart the highlighted 'points' that create reversals which lead to
lower prices. Today’s action makes this formation very clear and this should lead to lower
prices over the next 3 to 5 days.

This grinding bear market is not going to end until this uncertainty in the world is lifted.
How low we go is anybody’s guess right now, but I do have a longer term chart based on
market closing prices which shows a long term trend line that the NASDAQ might find
supportive. This trend line would also bring the NASDAQ back closer to a P/E that is in
line with historical levels. Or will it be when everything is a $2 stock?

1/4
Here is a chart of the DJIA and you’ll see that it has found resistance at the Fibonacci
38% retracement area so far. Maybe in a day or two we can move up a little higher to
maybe the 50% area. Hard to say right now as news still dominates this market. However
I do like the looks of the heavy volume at the bottom. This looks like capitulation has
taken place.

2/4
Again with this market so badly beaten up and the charts of so many stocks so
hammered there is nothing really to show to short or buy. It does appear though that the
Semi’s and Oils have further to lower in price and that’s where I would look for shorts. We
are getting closer to the end of earnings warning season and institutional tax loss selling.
These two items might turn this market around some or lend to support it when complete.

I do have a few stocks that could lower in price with my entry points. PPDI at $27, QCOM
at $45, ADI at $32, ADSK at $29 and maybe VRSN at $37 or higher.

I will not have a letter on Sunday but will be back on Monday. See you then.

Daniel J. Zanger

www.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 1 October 2001

Hello out there stock fans. After a decent rally on Friday the stock market is having a
difficult time with any meaningful follow through as noted by today’s lackluster action. The
NASDAQ is acting so sluggish it seems that it wants to move much lower before anyone
feels comfortable investing in this very uncertain environment.

This lack of uncertainty comes during a time that has to be one of the more favorable
climates in which to invest for future earnings based on liquidity factors. When you factor
in existing tax cuts with more potentially on the way, fiscal stimulus in the hundreds of
billions of dollars, energy prices that recently undercut strong support at the $25 a barrel
level and lowered to $21 a barrel, and interest rates moving toward a 39 year low, all of
this combined certainly has the potential to ignite this market reeling from our September
11 crisis. I believe its just a matter of time. But I look for this to happen over months not
weeks.

Now on to some charts. First up is the DJIA, which looks fair to negative for now. It looks
like we have the semblance of an ascending triangle setting up which suggests that this
market will soon head lower for a retest of the lows just set. Then on to the NASDAQ,
which looks fair and could go either way. However based on what we've seen, this index
couldn't rally if it had to, so I suspect the inclination is for this index to move lower in time.
That is unless this war ends very soon.

1/4
Now on to some charts of stocks that look like they might lower in price from an inverted
pole and flag pattern.

2/4
Tomorrow the Fed meets to once again lower interest rates. Not once this year has the
Fed had an inter-meeting rate cut that has not been followed up with a rate cut at the
regularly scheduled meeting. I think the market has been trading off a 50 basis point cut,
so should this happen, I doubt the market will respond positively. The only thing that will
make this market move up is the resolution of our new war.

I’ll see you folks tomorrow.

3/4
Daniel J. Zanger

www.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 2 October 2001

Hello out there stock fans. The Fed’s cut rates by 50 basis points, which was highly
expected, and for the first time in a very long time the stock market rallied instead of
selling off on the news. The DJIA moved up over 113 points while the NASDAQ moved up
a paltry 11.86 points. Does today’s action signal that the market may be washed out with
all the negative news factored in? More work needs to be done but enough stocks had
good moves to perk my attention today. We may be closer to a move up after this
institutional tax loss selling season is over with.

Even though many stocks including the indices like the NASDAQ, DJIA and S&P still
have very negative chart patterns of lower lows and lower highs, numerous stocks with
small horizontal patterns of seven days to two weeks have popped up one to four points
over the past few days on heavy volume. This is a good sign and hopefully a start of
some positive up trends.

I mentioned early last week that one or two of the Alternative fuel stocks like Ballard
Power (BLDP) could reassert themselves and move early like they did in April of this year.
Today BLDP made an impressive move again of over $4 on near record volume and with
a nice break away gap. This stock is quickly building a nice bullish chart pattern and
today it took out the highs set last week thereby starting a small series of higher highs
and higher lows. Many battered stocks with similar patterns will start to look like this if this
market regains it’s footing. Here’s BLDP’s chart.

1/5
Here are a few other stocks that have charts that are similar to the chart above and are
therefore candidates for long positions. However all long positions are susceptible to
earnings shortfalls, bad forward guidance, and external overseas influences which make
long positions a dicey proposition.

2/5
This stock ran up on news today and today’s spike up is a good start but much more time
is needed.

3/5
Here’s a stock that’s breaking into new highs from a very decent base. All the classic
signs that one looks for in a base are in this one. This company owns over 1000 video
stores. HLYW has a similar chart with a very powerful break away gap today and it too is
in the video rental business.

Again the NASDAQ has a negative chart like I mentioned last night, as does the DJIA. If
the DJIA breaks down out of its ascending triangle my guess is the NASDAQ goes with it.
I do like the tight horizontal look of the NASDAQ though and if more stocks turn up

4/5
hopefully the NASDAQ can break out of this tight formation. This could at the very least
signal a nice bear market counter trend rally.

See you tomorrow.

Daniel J. Zanger

www.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 3 October 2001

Hello out there stock fans. What a tremendous day today with an explosion of volume and
price movement on so many tech stocks. It’s been 4 months or more since we’ve
witnessed a move like today. Could this signal the beginning of the end of this cruel and
unyielding bear market? It could, so stay tuned for more upside behavior.

To me it looks like the market was setting up for this with so many stocks having nice
horizontal patterns of 7 days to 2 weeks like I wrote about in last night’s letter. Many of the
stocks I highlighted extended their gains today. I’d call this definite follow through, with
many new stocks starting their own moves today. Seibel Systems (SEBL), one of my
highlighted stocks, traded over 44 million shares today on triple daily average volume as
it tacked on over $2 in a very nice follow through move.

Volume today was of particular note with the NASDAQ hitting a whopping 2.7 billion
shares as many stocks moved out of small basing formations. This shows the move has
legs and we should continue to see good gains on numerous stocks going forward. At the
least, this would be a bear market counter trend rally and if we can get high enough we
could conceivably be out of bear market country for years to come.

With close to 3 trillion dollars on the sidelines in money market accounts and other
instruments combined with record short interest in stocks, the ingredients for a
sustainable longer-term rally fueled in part by a major short squeeze could be in the
works. Let’s hope so

Now on to some charts.

1/4
2/4
Here are some picks for the active short-term trader to look at with my technical buy
points. ADVP at $74, DGX at $62, ELNK at $17, EXTR at $8, ISIL at $28, SEIC at
$33.35.

Remember folks new bull markets last for 12 months to 2 years. This means that there is
plenty of time to get back into the market and still make piles of money. Remember we
haven’t even seen any real bases formed yet only the start of little tiny ones to nibble on.

3/4
We are a long ways from any meaningful and heavily rewarding moves. They will come,
you can count on that.

I will see you on Sunday. Hopefully this can keep up and I will have to cancel my end of
October vacation once again.

Daniel J. Zanger

www.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 7 October 2001

Hello out there stock fans. Tremendous moves on numerous stocks this past week with
most of the best movers listed here as they were in the process of breaking out. It
appears that for now the Storage stocks are leading the way with Emulex Inc. (EMLX)
being one of the strongest and best movers in the stock market right now. Listed here on
Wednesday when the stock broke over its descending trend line and closed the day on
Tuesday at $11.75. The stock moved up sharply since and closed just off the high of the
day on Friday at $16.38.

Many other stocks are moving well, and as one might expect all the best movers are
stocks we are all familiar with since there have been no IPO’s to speak of over the past
12 to 18 months. Brocade Communcations (BRCD), CheckPoint Software (CHKP), Seibel
Systems (SEBL), Qlogic (QLGC), PeopleSoft (PSFT), even Juniper (JNPR) is moving
well on very heavy volume as it moves up into the upper trading band where it might find
some resistance. Most of these stocks by the way can produce very substantial earnings
in the $1 per year range in a decent economy.

Many of these stocks have had moves of 40 to 60% is just a matter of days. It would be
nice to see these stocks rest for a few days before moving higher. Sometimes this
happens and sometimes it doesn’t. Often times this doesn’t happen at the onset of a
powerful new move. However be prepared for possible retracements of 38 to 50% on
many of these as they 'stair step' up in price.

Now lets get to some charts of these movers.

1/5
2/5
3/5
Now on to the NASDAQ and the DJIA.

4/5
See you folks tomorrow

Daniel J. Zanger

www.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 8 October 2001

Hello out there stock fans. After a timid opening today due to the launching of the highly
advertised and anticipated attack in Afghanistan, NASDAQ technology stocks began to
creep up and into the green on this Columbus Day Holiday for some. Those stocks that
moved strongly last week took the day off basically and were in need of a well deserved
rest, while those that failed to move last week started to show some signs of life.

Those stocks are the Semiconductor equipment stocks and the time off they’ve taken was
needed to form stronger bases from which to move forward from. Let’s take a look at
some of these bases. First up is KLA-Tencor (KLAC) and then on to some others that
have similar patterns or other bullish patterns. By the way AMAT looks like the others in
this group.

1/3
Now here are some stocks for the active trader with my technical buy points. ADBE at
$30.50, BRKS at $33.50, CHKP at $29, EBAY at $55.50, NTIQ at $29.50, NVLS at $31,
PLCM at $31, QSFT at $17, SEBL at $19.30, QLCM at $41.50 and VRTS at $26.25.

2/3
Tomorrow I will add 800 shares of EBAY to the model portfolio as it moves over the 50day
line at $56. As more stocks show technically good behavior I will move them into the
model portfolio as well.

See you folks tomorrow

Daniel J. Zanger

www.Chartpattern.com

P.S. Does anyone really believe that our V.P is in a 'Safe House'.

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 2001

Hello out there stock fans. A mild retracement today, after a healthy move up during the
past week on all leading indices. The DJIA has retraced about 62% of the down leg we
experienced since we broke 10,200 back about 6 weeks ago to the lows at 7926. This
combined with a rising trend line and a Dow that is unable to fill its large gap suggests we
might be ready to move lower and possibly retest the bottom around 7900. A break of this
rising line with no downward movement implies a horizontal base. Let’s look at this chart
with this rising trend line. Of course, good news from either the war or a major company
could send this market above resistance and negate this chart. That would be very a
welcome event.

Here is a chart of the NASDAQ and its resistance line.

1/4
Now on to the S&P 500.

Many stocks exploded last week with the NASDAQ hitting over 2.7 billion shares for the
day. Since then volume has tapered off while most of the stocks that moved up strongly
have moved horizontally. This includes numerous stocks that were listed here like Seibel

2/4
Systems (SEBL). This is excellent behavior and builds very strong and bullish charts.
However this market is so uneasy these days it’s very hard to say what the market has in
store for us next. For sure we need to break out above the trend lines and resistance
areas or stocks will suffer and fade away once again.

Now on to some charts for the latest.

This stock looks good and acts good too.

3/4
Until more stocks set up there are no other good charts to highlight tonight.

Today EBAY did not cross the 50 day and hit the buy target therefore it was not added to
the model portfolio. When it does hit this point at $56 it will be added. This target will
change from day to day and I will keep you updated on the new buy point as it changes.

I’ll see you tomorrow.

Daniel J. Zanger

www.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 2001

Hello out there stock fans. A very nice move today as the both the NASDAQ and the DJIA
turned up creating very bullish patterns that suggest we are about to fill the gaps that
were created as a result of the September 11 disaster. There are so many charts to view
let’s get right to them.

Many stocks are creating Flag patterns which can be some of the most profitable patterns
in stocks. Here are a number of them. These are as a result of the volume drying up after
multiple up days.

1/5
2/5
Other stocks looking similar are EMLX, NVDA, QLGC, TLGD, PLXS, PMCS, QQQ’s,
QSFT, CLS, CSCO, EXPE, FLEX and the SOX and the GSO index. Find the high point
on these patterns of the past 3 to 6 days and as the stock hits a new 5 day high that’s
your buy point.

Now here’s a stock I listed the other day for active traders with a buy point of $42 as I
believed it was completing a capitulation move. Today this stock powered up over $4 on
massive volume and now it’s clear it did complete this move. Qualcomm (QCOM) is the
stock.

3/5
Now on to a stock that I said was putting in a bottom a few days ago and today this stock
moved through a small descending trend line and is now on its way to a bigger resistance
line. R.F. Micro Devices is the stock.

4/5
Also worth noting is that brokerage stocks are turning up which is a good sign. These
stocks normally turn higher when the market is moving higher and no good market move
happens without this group. Here are some stocks worth looking at. SCH, RJF, MWD,
GS.

MODEL PORTFOLIO

Today EBAY hit my buy point as it passed through the 50 day moving average line today.
Therefore I will add 800 shares as planed at $56 to the model portfolio. Tomorrow I will
add 2000 shares of Seibel System (SEBL) as it leaves its flag base at $19.25, 2000
shares of NVDA as it leaves its little base at $34.50 and 2000 shares of PSFT at $27.

Here are some stocks to look at for the active trader with my technical buy points. NVDA
at $34.50, ADI at $40, SANM at $16, TER at $23, TLGC at $27.50, TMPW at $32.50,
TXN at $29, CCMP at $52, CEPH at $58, CSCO at $15.25, CLS at $34 and GILD at $63
since it just broke out into all time new highs today.

I’ll see you folks on Sunday as usual.

Daniel J. Zanger

www.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 14 October 2001

Hello out there stock fans. Another case of Anthrax combined with worse than anticipated
economic numbers on Friday snuffed out what should have been a very explosive
opening due to the much better than expected earnings numbers from Juniper Networks.
However dip buyers returned in droves near the end of the day pulling the NASDAQ back
up sharply near the end of the day.

In just a few short weeks bullish chart patterns abound with volume patterns confirming
the move. Let’s get to the charts where many of these were shown here early last week at
nearly half the price they are today. Some are in a group that is lagging a little, but in time
should move up sharply. First up tonight is the NASDAQ and here you’ll see that it’s about
50 points away from some strong resistance. Then on to the Biotech index which shows
us that Biotech stocks might be ready to move if the descending trend line on this index is
broken.

1/6
2/6
These two stocks are extended and are in need of a rest after doubling in just 8 trading
days. They were listed here 7 days ago.

3/6
MODEL PORTFOLIO

All stocks listed last week to be added to the model portfolio did in fact strike their buy
price that I had listed and as a result were added to the model portfolio. The whole market
gapped up on Thursday of last week including the stocks I wanted to add to the model
portfolio. Therefore I had to buy them at just slightly higher prices. They are listed in the
Model portfolio section of the web site. https://chartpattern.com/cf/login.cfm

I did however add a little too much stock and went just over the funds available to me.
Therefore instead of adding 2000 shares of stock of each of them, I will reduce the
quantity of shares to 1500 each and I will update this first thing tomorrow. The model
portfolio is now filled with the following 4 stocks. Nvidia (NVDA), Ebay, (EBAY),
PeopleSoft (PSFT) and Seibel Systems (SEBL).

Here are some new stocks to look at. First up is Network Associates (NETA). This stock is
on the move and just posted good earnings and said things are looking good going
forward. The stock is acting well and is just now coming out of a good base.

4/6
This stock I had back in 1999 at $18 before it ran to high $90’s before splitting 3 for 1 and
crashing like most chip stocks. It just gave good forward guidance and the stock exploded
with a massive gap on the news. This stock is extended in price and does need to rest so
be careful here at this price if you choose to buy it.

5/6
Two old time favorites here over the last few years PMC Sierra (PMCS) and Applied
Micro Circuits (AMCC) finally got up and moved well late last week. Volume was massive
and worth noting. R.F. Micro Devices (RFMD) blew through its descending trend line on
heavy volume. You may remember my bottoming pattern on that stock at $16 8 days ago.
The stock closed at $24.30 on Friday. CCMP, VRSN, CHKP QCOM, ISIL and EXTR are
acting well and need to be watched everyday now. Juniper Networks (JNPR) exploded on
Friday with a huge gap in price and record volume. This stock is now far above its upper
trading band.

This market move is strong and should last for sometime. Many more stocks will set up
and lift off quickly and rapidly and I will have them here over the next few weeks. This
means my vacation once again has been cancelled. See you tomorrow.

Daniel J. Zanger

www.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 15 October 2001

Hello out there stock fans. Another weak opening today due to downgrades of chip stocks
by leading brokerages. As was the case last week, stocks for the most part staged a late
day comeback though not as strong as what we saw on Friday of last week. Tech stocks
in general finished slightly in the red but on much lighter volume. This is bullish for higher
prices after a period of rest and consolidation.

Continuing consolidation is underway in a number of stocks that had those Flag

formations I highlighted last week. This is because they failed to move out as they should
have. These include CheckPoint Software (CHKP) Mercury Interactive (MERQ) and two
of our Model portfolio stocks Seibel Systems (SEBL) and PeopleSoft (PSFT). These two
model stocks are resting which might be good but I’m never happy with model stocks, or
any other stock for that matter, which fails to move out of a base rapidly. This is true
regardless of the type of pattern it exhibits. Sluggishness is never a good thing in the
behavior of a stock. Let’s look at some model stocks right now.

1/3
Meanwhile the other two model stocks are acting much better. Nvidia (NVDA) and Ebay
(EBAY) are on the move so let’s look at them.

2/3
After hours today, Novellus (NVLS) gave negative earnings and future prospects.
Tomorrow we have earnings from heavyweight IBM and Intel. These items combined
could produce some selling pressure on the markets tomorrow. Therefore I have no other
charts or stock picks to review. Hopefully we should see some in the next few days. See
you tomorrow.

Daniel J. Zanger

www.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 16 October 2001

Hello out there stock fans. Lack of selling today led to a very strong close as shorts
sensing good news from IBM and Intel (INTC) after the close, bought heavily fearing the
worse. This market reminds me a lot of the bull market that started in late December
1994. Stocks started off slowly and just kept on going for many months.

With the stock market up strongly in after hours on very heavy volume it appears that
stocks could open with big gaps and see a good run tomorrow. Here is a stock that looks
ready to make a good move tomorrow. Most of the best ones are in the list below but
have no meaningful charts to list tonight.

These are for the active real time trader. BRCM at $33, BRCD at $25.50, SEBL at $22,
PSFT at $29, PMCS at $17.50 RTEC at $27, SEAC at $22, STK at $15.27, TQNT at $20
BEAS at $15, BRKS at $37, VRSN at $51 and QCOM at $51.

MODEL PORTFOLIO

Model stocks acted well today with Nvidia (NVDA) moving up $4 and above the trend line
that was short term resistance in last nights chart. This stock is now above the upper
trading band. Ebay (EBAY) had a good start today but retreated mid day and this stock
needs a rest after a good run from the low $40’s. Seibel Systems (SEBL) turned up from
a good consolidation area and tacked on a good gain today of about $1.75 and should

1/3
move up further tomorrow. PeopleSoft (PSFT) started out well but sold off during the day
on another Anthrax scare. It had a hard time recovering but did post a small gain and the
chart is still very positive.

This Friday is options expiration and the Wednesdays preceding expiration is usually
strong and this should add to tomorrow’s action. By the way Thursdays are usually weak.

Remember the 50 day on the NASDAQ is at 1739 just a hair above where we closed at
today. I suspect we will blow right through it and then on to the 50% retracemnet mark at
around 1860. Here is a chart of the NASDAQ.

See you tomorrow and hang for what could be a wild ride.

Daniel J. Zanger

www.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 October 2001

Hello out there stock fans. A strong opening gap up leads us not to an up day, but a very
powerful wave of early morning volume as traders sold the strength with great
determination. Stocks like Juniper Networks (JNPR) traded almost its daily average
volume of 21 million shares in the first 2 hours of the day as the stock traded down
signifying some liquidation.

Much of today’s action can be attributed to options expiration as option players and
hedgers of stocks with options roll over option contracts to forward contracts. Some of the
action today can be attributed to the fact that we are very extended and the NASDAQ hit
its 38.2% Fibonacci retracement level as seen in last night letter. And let’s not forget
another Anthrax scare in Washington and N.Y.

At any rate it looks like stocks for the most part are just too extended to move up any
further. Most leading stocks like JNPR, EMLX and QLGC went beyond their upper trading
bands and have had moves of 100% or more in just two weeks. This makes these stocks
highly susceptible to a sell off.

Now let’s see what's happening on the DJIA and the NASDAQ. These indices closed on
their lows of the day which implies lower lows to come at least in the morning. Best case
scenario is a lower opening with a close above today’s close.

1/4
Meanwhile R.F. Micro Devices (RFMD) had better than expected earnings and the stock
gapped down at the open and volume exploded as it did for many others today. Most
notable for this stock is that it crossed below the trend line immediately after it broke
above it. This is a technical sell signal. A trend line once broken should act as support.
Let’s see this line that I noted for you the other day.

2/4
MODEL PORTFOLIO

Today PeopleSoft (PSFT) was downgraded slightly and the stock sold off a few points on
lighter volume than most others as it was on track to only meet its daily average volume.
Most of the time during this stock run, other stocks that have had downgrades easily
came back. With today’s light action I felt comfortable that this stock would come back.
Then again I, like many others, were surprised by the severity of todays sell off after such
good action over the past few weeks. I had no choice but to issue a late day stop for this
stock.

Seibel Systems (SEBL) acted strong during this sell off and several times attempted a
come back. It hovered around $20 and looked strong. That is until it unexpectedly
released earnings before the close. This stock caved quickly when the news was
released. As it quickly caved I sent the stop and emailed you as fast as I could. A preset
stop would have done little on this one as it would have been in the $18.25 area and the
stock dropped so fast your fill like mine would’ve been at $17.30. With the market
decidedly negative I will set stops for NVDA at $40.50 and EBAY at $56.

Are there any shorts for the short term active trader you might ask? There seems to be a
few but for the active trader as always. MERQ at $22, GS at $82, MER at $44, MSFT at
$55.50, NVLS at $29 and ADI at $39. Plus these two Biotechs.

3/4
See you on Sunday.

Daniel J. Zanger

www.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 21 October 2001

Hello out there stock fans. After a very negative 75 point decline on Wednesday the
NASDAQ staged a decent comeback on Thursday with the NASDAQ making a positive
close just a few points above Wednesday's close. Leading stocks in the market which
have made the biggest moves since the market bottomed on September first continued to
climb on Thursday with more follow through on Friday.

The best of these I’ve highlighted here a number of times and they are worth mentioning
again since they are the leaders in this market move. They are Emulex Inc. (EMLX),
Qlogic (QLGC,) Juniper Networks (JNPR) and Nvidia (NVDA). These four stocks are the
strongest movers and therefore the best acting stocks in the market today.

Here are a few stocks that are looking good. This first one reported earnings late
Thursday and the street gave it two thumbs up vaulting this stock 6 points on a sizeable
break away gap. Earnings for this tech stock were up 190% to .29 while revenues were
up 141% to just over $36 million.

1/3
There are many other stocks that look ready to move tomorrow and these are for the
active trader on real time. Of course the market must be in a positive mode before
considering any of these and stops must be set tight. BBY at $54, GNSS at $39, CDWC
at $45, BRCD at $24.75, CEPH at $62, HLIT at $11, TARO at $42, WEBX at $30, POWI
at $23.25, KKD at $38, IMCL at $60, DNA at $47, and CLS at $36

MODEL PORTFOLIO

Ebay (EBAY) reported earnings on Thursday and the street gave it thumbs down with a
break away gap to the downside thereby making this stock hit the stop set last week at
$56. This stock opened the day below this at 54.50 so I will take it out at $54 . Seems all
stocks are moving sharply lower on earnings even though poor earnings are expected.
My guess is that most of these stocks like PSFT, RFMD and SEBL will be higher after a
period of rest and in a year or two these stocks probably will be much much higher as the
economy gets back on track.

This leaves Nvidia (NVDA) as the lone stock in the model portfolio and it looks excellent. I
will now add 1500 shares of Genesis Microchip (GNSS) to the model portfolio on Monday
at no more than $41. More often than not the best price can be had by waiting one half
hour after the market opens.

Of course I really must find a way to get the strongest stocks in the market today in the
model portfolio. It’s the only way to make the biggest money the market has to offer. As
soon as I can find a good spot to get these in (JNPR, EMLX, QLGC), I will do so.

See you folks tomorrow and good trading.

2/3
Daniel J. Zanger

www.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 2001

Hello out there stock fans. Stocks opened with sluggish behavior today but turned higher
after an hour of trading. However many leading stocks like JNPR, BRCD, EMLX, QLGC
and others saw volume move up during this period of time and stock prices going
nowhere fast. This implies these leaders are in need of a well deserved rest. Meanwhile
Biotech’s, chip stocks and brokerage stocks turned in a good performance today and
many of these were in our Active Traders section of last night’s letter.

Last week the DJIA broke below the small rising trend line I showed you on its chart and
basically it went nowhere after the break. When I showed you the chart I mentioned that if
there was little downside action after it broke the line, then chances are this index
probably wouldn’t test its recent lows. This in fact proved to be the case. Today this index
powered up and closed well which suggests we are going higher. Here is its chart along
with the latest NASDAQ chart.

1/4
MODEL PORTFOLIO

Today Genesis Microchip (GNSS) gapped open slightly at the 40.50 area and stayed
there for about 10 to 20 minutes vacillating around with few sellers to speak of. Not
wanting to miss this stock's move, I personally bought this stock at 40.55 and that’s where
it will be entered into the model. Generally stocks that gap up in the morning move
horizontal to lower after this gap and generally come down slightly in price after the first
half hour of trading before moving higher. I say 'generally' here because it is not always
the case as it was today.

Today’s move was a confirmation of yesterdays move as it traded 100% over its daily
average volume. The stocks price action was very positive as it tacked on $4.67 which
made it one the highest dollar movers in the market today. This is one of the best looking
and most positive charts in the stock market right now.

2/4
Now on to some stocks that appear ready to move.

3/4
Now on to some stocks for the active real time trader to look at with my technical buy
points. IDTI at $28, KLAC at $39.30, NVLA at $33.75, MSFT at $60.30, AMAT at $35,
CCMP at $58, CLS at $36, and CY at $19.50.

I’ll see you folks tomorrow.

Daniel J. Zanger

www.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 23 October 2001

Hello out there stocks fans. Somewhat of a reversal day today as stocks opened higher,
rallied up slightly only to sell off with numerous stocks closing on their lows of the day.
This type of behavior can usually suggest a rest is in order for these stocks.

Meanwhile the NASDAQ is flirting with its 50 day moving average line yet can’t seem to
find the will to close above this line. A close above this line would be technically good and
would also be the first time in over three months it has been over this line. I have the 50
day at 1709 and this line descends daily so at some time the NASDAQ will cross the line
by default if not by its own desire to. Today the NASDAQ closed at 1704. The S&P 500 is
also finding resistance with its 50 day. Yesterday I had the NASDAQ’s chart so today’s
chart is the S&P 500.

Some stocks are moving horizontal which is often a good omen for higher prices. Let’s
look at some that have this potential to move soon. By the way I would like to see many
more like these and in time I’m sure we will.

1/3
MODEL PORTFOLIO

Both stocks in the model area look good. NVDA came down today and is in need of a
good rest after a huge move from $22 to $46 in a couple of weeks. I will raise stops to
protect higher profits. New stops for this stock are now set at $44. After a period of rest

2/3
this stock may start to move again in which case I can add it once again.

GNSS took the day off retracing some earlier gains. This stock could see $40 before
turning around and advancing once again. Stops on this one just in case are below its
recent trend line at $37.50.

Due to today’s action there are very few stocks to look at for the active trader. Two that
come to mind are RFMD at $21.07 and KLAC at $40.50. If we can get a few more days of
rest there should be many more to consider.

See you folks tomorrow.

Daniel J. Zanger

www.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 24 October 2001

Hello out there stock fans. No rest today as stocks took off at the open with leadership
stocks taking control once again and posting the largest gains in the market like they
should. All of these stocks were shown here with much lower entry points three weeks
ago. They are Qlogic (QLGC), Emulex (EMLX) Juniper Networks (JNPR) and two of lasts
night's selections Brocade Communications (BRCD) and Qualcomm (QCOM). All of these
stocks posted strong gains of $3 to $5 each and most on volume that is far beyond daily
average.

Today’s action also put the NASDAQ above resistance at the 50day moving average line
on a closing basis for the first time in over three months. This also allowed many
individual charts to turn more positive and suggests further gains are to be made shortly.
With that in mind let’s get to the charts.

1/4
2/4
In two of these charts you’ll see a Darvis Box formation. This is coined after the man that
turned $33,000 into $2,000,000 in two years and he wrote a book called 'How I made two
million dollars in the stock market' By Nicolas Darvis. I guess my book would read how I
made $18,000,000 in the stock market in 18 months. Could it be that with inflation
factored in he beat me?

Anyway here are some stocks for the active trader to look at. ZORN at $27, CIEN at
$19.50, KLAC at $41, CCMP at $61.70, AMAT at $36, CTXS at $24.75, IRF at $35.20,
HGSI at $40, RSTN at $12, SEBL at $19, and PSFT at $30.

I hate to report this stock fans but I need to raise the rates for all existing subscribers.
Ongoing expenses with employees such as Maya for the InFocus Report, administrative
support staff and programmers outstrips the rewards for me. The new rates effective
November 1st are $45 per month and we no longer offer a quarterly rate unless you wish
to pay by check. This rate by the way has been in effect for new subscribers for many
months. You can click the link below to review the terms. Again, the new rates go into
effect November 1st or when your next renewal date is. These rates are very cheap for a
letter that runs 4 nights a week and has all the big winners in the market. I’ve seen other
services that can’t even compare for stock selections at anywhere from $95 to $400 per
month.

https://chartpattern.com/cf/registration_form.cfm

MODEL PORTFOLIO

3/4
Today NVDA hit my stop and was checked out of the model. Had the market not been so
strong late in the day this would have not closed so well. If you still own it, it does look like
it's moving higher. GNSS came down to that $40 area I talked about yesterday and then
turned higher with a burst of volume late in the day. This stock is poised to hit $50 maybe
tomorrow or the next day and should hit $60 soon there after.

I wanted to send out an e-mail adding QLGC intraday to the model portfolio but didn’t
alert most of you in advance that I would do this as I thought the market would rest
another day or two before moving ahead. Therefore I will add this stock tomorrow at no
more that $43. 1500 shares will be added if this stock trades at anytime tomorrow below
ask $43. Where I buy it, is where I will add it.

I will see you folks on Sunday.

Daniel J. Zanger

www.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 28 October 2001

Hello out there stock fans. A wild ride on Thursday following some rather weak economic
numbers that seemingly took traders by surprise. Stocks gapped down hard at the open
as volume surged for three hours. However after those fearful traders exhausted their
supply of stocks, buyers emerged en masse and rallied stocks for the most back up and
into positive territory for the day. Let’s look at the latest NASDAQ chart.

Friday was a different story however as Nasdaq stocks traded slightly lower on normal
daily average volume until late in the day when stocks faded quickly at the bell. A quick
fade at the bell on Fridays usually signals a weaker market the following week. The key
word here is usually not always. Meanwhile the DJIA had a very good outing on Friday,
moving above its recent area of consolidation and closed above its 50 day moving
average line. Here is the latest DJIA chart.

1/5
Now let’s look at one possible reason why tech stocks stopped on Friday. This index
could be worth watching more closely. It’s the Morgan Stanley High Tech index (MSH).
Like the NASDAQ and all other indexes the longer the trend line is, the stronger the line
is. Therefore a break of these long lines on each index will be of great significance for
higher stock price.

2/5
MODEL PORTFOLIO

On Thursday Qlogic (QLGC) opened low and moved still lower in that day's sell off. This
provided me with a chance to purchase this stock at a lower than expected price of
$40.50. This stock moved lower than this shortly after, but I had already bought the stock
at this price. Therefore 1500 shares go into the portfolio at $40.50. Stops or my sell point
on this stock will now be set $37.

The other model stock, Genesis Microchip (GNSS) acts very well and still has the best
looking chart pattern in the market today. Stops on this stock will now be raised to $41.

Due to so many stocks moving so freely to the upside last week most of the charts are
too extended to consider right now. What’s left to look at are a few Biotechs and a few
laggards. For me however, I stay focused on the leaders which I’ve mentioned here many
times over the past few weeks. They are GNSS, QLGC, EMLX, QCOM, JNPR, NVDA
and BRCD. Now I would like to highlight some stocks that had impressive moves this past
week. They are extended now, but with a few weeks of rest they should be ready to
extend their gains.

3/5
4/5
NASDAQ stocks need more time to rest before there will be more stocks to list for the
active trader. We should see some in a few days would be my guess.

See you tomorrow.

Daniel J. Zanger

www.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 October 2001

Hello out there stock fans. Last night's letter highlighted Friday’s weak close last week
and implied that there would be weakness in the market today. We were not surprised as
all leading stocks and indexes turned down today in a big way. Today’s stock behavior
was Bear market like since today was not a case of selling on volume, but a case of bids
drying. Volume was below daily average or about average on most stocks. It was Bear
market like because recent base break out points were violated. Had they not been
violated this volume would’ve been more Bull market like.

With today’s negative action, the Morgan Stanley High Tech (MSH) index closed below its
rising trend line by the end of the day and the NASDAQ closed right on its rising line with
its close on the low of the day. This implies further lows are due tomorrow and
subsequently a break of its line. Also, Futures are down big in after hours suggesting at
the time of this writing that tomorrow could be as ugly as today. Looks like the Russian
Bond crisis could be duplicated with Argentina’s bond crisis and therefore this market
might be in the midst of retesting it lows put in on 9-21.

Once this small rising trend line on the NASDAQ is broken, it will be free to drop as far as
it likes. Here is a chart of the NASDAQ along with the Fibonacci retracement lines
overlaid showing where this index might find support. Yes this index will retrace some if
not all of this most recent move up off the bottom.

1/4
Now on to some charts that have Bearish patterns and might be worth a shot at shorting.

2/4
Here are some tech stocks that might want to move lower with my technical entry points.
Of course if they rally up then getting them at the higher price would be better. But soon
thereafter the market must turn lower. Also if they gap down big at the open do not chase
them. MXIM $45, CHKP at $29, ELNT at $33.25, GLID at $65.50, JBL at $22.45, LLTC at
$37.50, and MCHP at $31.

3/4
MODEL PORTFOLIO

QLGC succumbed to the pressures of the market today and looks sure to hit my stop
tomorrow. Stops are still at $37 and higher if you can get it. My stop on GNSS still stands
at $41. By the way if you still own NVDA make sure you have a stop in somewhere that
makes you feel comfortable as this stock looks poor after two heavy down days. This
goes for all other stocks, including leadership stocks that you might own.

See you tomorrow.

Daniel J. Zanger

www.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 30 October 2001

Hello out there stock fans. The NASDAQ opened today with a gap down across that trend
line I mentioned last night. However selling pressure was modest until a consumer
confidence report was released at 10 am EST which came in much lower than expected.
Selling pressure picked up tremendously at that point and stocks caved another 1 to 2
points each. This lasted for an hour or so when selling abated and bargain hunters took
over, bidding numerous stocks into green territory until the last hour of the day when
sellers took command and pushed stocks lower into the close.

Volume on most tech stocks was above average while losing just a point or two. When
this happens it puts a stock into the category of distribution. However I thought that with
this heavier volume today we would have seen more points lost on each individual stock.
Yesterday we had heavier point damage on far less volume than the daily average
volume. This implies to me that there were lots of institutional buyers out there today
buying the fear and the break of the trend line. One reason for this may be due to the fact
that we have come down so far so fast and/or this is our third down day. After three down
days the likelihood for an up day increases.

At any rate with so many of the charts doubling in price over the past few weeks and
today’s action not helping with chart formations there are very few charts to show tonight.
I’m not a happy camper when this happens, but it's part of the process. I do have a few
charts of the NASDAQ though so here they are. The first one is a long term weekly chart
and you’ll see that the NASDAQ has broken a very long term trend line that dates back to
August of last year. Because this line is so long it should be considered an important
break.

1/4
By the way if this market were more bearish, stocks like Brocade (BRCD) would have
taken a beating today on the cross of that trend line that I had in last nights chart instead
of rallying most of the day. This stock and others that looked favorable to short probably
will be in up mode when this market turns positive again. This means I would avoid
shorting stocks that break trend lines and don’t go down.

2/4
MODEL PORTFOLIO

QLGC had a minor gap down today and then turned around and moved up to be the
strongest stock in the stock market today. The stock never hit the sell point that had been
in effect for a few days at $37. I must say I’m surprised that it’s still a model stock with the
markets' downdraft over the past few days. A tough stock for sure and that’s why I
selected it to begin with.

Genesis Microchip (GNSS) never hit the stop at $41 and at the end of the day this stock
turned up nicely and went green before the end of the day sell off, shaved a point off the
highs of the day. Ever notice how this stock makes its move later in the day than most all
other stocks. It’s consistent about this too.

3/4
Until more chart patterns form there are no stocks to list tonight. Hopefully by tomorrow
we will have more to show.

Daniel J. Zanger

www.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 31 October 2001

Hello out there stock fans. A strong gap opening today for many tech stocks combined
with a heavy burst of volume pushed stocks up 1 to 3 points for the first two hours of
trading. Profit taking soon set in as traders felt that they had seen the highs of the day
and indeed they had. Stocks failed to make a comeback to session highs by the end of
the day.

After scanning about 400 stock charts twice today and seeing such meaningless
movement on stocks and inadequate completion of any chart patterns to speak of; there
are no charts to show tonight. I really thought we would have something to look at after
today but things need more time to set up after such a big lift off.

There might be some movers here in this section for the active trader, but these are
probably not big movers. However a point or two might be had on some. They are HLYW
at $16.20, HGSI at $43, GSPN at $12, NTAP at $14, NTIQ at $28.30, WLP at $112.70,
AMHC at $40.70, AMHC at $40.70 and FLIR at $46.60. With another two weeks or so
there should be some very strong patterns as numerous stocks are moving horizontal.
This is very constructive for future price movement.

Next Tuesday November 6th we have another FOMC meeting to decide on interest rates.
It could be that we get some strength in the market as we approach this. This would be a
combination of short covering as well as some buying. If we do rally into the meeting it
would seem quite possible that we see 'sell the news' upon the announcement of the
potential change of interest rates.

If some charts come up tomorrow I will put out a letter tomorrow with those charts.
Otherwise I’ll see you on Sunday.

Daniel J. Zanger

www.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 1 November 2001

Hello out there stock fans. A strong day in the market after some really bad news was
released early today from the Chicago PMI. This gives us some really exciting charts that
should be very rewarding. Most of the charts look best for the active trader but our model
pick GNSS still looks great. Also on the active trader list below is our other model stock
QLGC.

Here are some more stocks to consider for the active day trader. AEIS at $22.10, AMAT
at $37, BRKS at $35.25, EMLX at $25.10, NVDA at $46.55 BRCM at $37.15, MXIM at
$50, CCMP at $71.15, , INTC at 26, IRF at $37.50, KLAC at $44.20, PDLI at $34.45,
NVLS at 35.40, QLGC at $42.26, and QCOM at $51.50.

See you Sunday.

Daniel J. Zanger

www.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 4 November 2001

Hello out there stock fans. Thursday’s market action was very strong with leading stocks
and groups making good point gains. Friday’s action was more of what we’ve been
seeing lately after a strong day - a day that either reverses the previous day's gains or a
market that goes nowhere. We saw the latter on Friday. One reason for the lack of follow
through is the NASDAQ being so close to breaking a major trend line and stocks really
needing more time to consolidate their recent gains.

The breaking of the trend will probably need the help of Cisco Systems (CSCO) a major
bellwether for tech stocks, which reports its earnings and future outlook Monday after the
Bell. What this company says will have a major impact on the movement of tech stocks in
after hours trading on Monday and much of trading on Tuesday. This means a big move
up or down could occur. Another source of needed fuel will be the Fed’s decision on
interest rates due out Tuesday at 11:15 Pacific Standard time (PST). However I think is
very important to have a 50 basis point cut and not a 25 basis point cut.

To get a big picture perspective of the NASDAQ let’s look at a compressed weekly chart
of this index. It looks very Bullish as you can see.

1/4
I would like to mention that all of the leading stocks in the market are much extended after
gaining 100 to 200% since the market bottomed in Late September. Volume on many
stocks is drying up while momentum is drying up too. This suggests that these stocks are
trying to base out and not break down. They really need more time to base though; up to
another 2 to 4 weeks on most. But will they is the big question right now.

Here are some stocks that are looking decent and could be ready to continue to gain and
are not extended. In fact I will add THQI to the model portfolio tomorrow. I will add 1500
shares at no more that $57. After this stock goes into the model stops will be set at $54.
Earnings were just released on this stock. They were up 133% to .14 while revenues
were up 28% to just over $61 million. It is a leader in software games for home video and
hardware platforms.

This stock was a former high flyer and can pump out the earnings when things get good. I
would like to see a few more days on this stock before it goes but you never know.

2/4
Here is leading stock in the Broker group and its formation adds a bullish stance to the
over market as brokers and their stocks look and act well in bull markets. The symbol for
the broker group is the XBD.

3/4
Here are some stocks to look at for the active trader. CRUS at $13.25, CSCO at $18.20,
IRF at $38, NVLS at $37.75, PMCS at $18, SNWL at $14.50 PHSY at $20, and VISG at
$14.50.

MODEL PORTFOLIO

Tomorrow I will add 1500 shares of THQI to the model portfolio on up to $57 and it must
trade in the range of $55 to $57. If it gaps lower or higher I will do nothing until it trades in
this range. QLGC still has stops set at $37 and GNSS may need more time before it can
get up and move to $60. Stops remain on that one at $41.

See you folks tomorrow.

Daniel Zanger

www.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 November 2001

Hello out there stock fans. A very strong day today with numerous stocks hitting new
move highs in front of earnings from Cisco which were due out after the bell today.
Today’s move was also in front of a Fed FOMC meeting scheduled for tomorrow. To be
sure much of what we are seeing is short covering and with good cause as Cisco
Systems (CSCO) beat its consensus earnings number by 100% after the bell. Consensus
was for 2 cents and it came in at 4 cents.

This is a much better than expected earnings number from CSCO and this has tech
stocks of all kinds up strongly in after hours trading. Often times a run up of one or two
days into a big event such as this can lead to big opening gaps the next day. This is a
good opportunity for traders and institutions to sell into the strength and the feeding
frenzy.

It will be necessary to keep that in mind as you look at tonight's charts. Today’s action did
create some good charts so let’s get to them. Most of these are prior big movers and
most are in some way or another connected to Cisco as suppliers or in the same
networking group. But first up is a chart of the NASDAQ and here you’ll see where it will
find some resistance now that it has broken a long trend line.

Now on to the S&P 500 index and it is close to breaking a long trend line.

1/5
2/5
3/5
Here are some stocks for the active trader. QLGC at $45, EMLX at $27.75, RFMD at
$22.50, VRTS at $34, BRCD at $28, MXIM at $51, CCUR at $12.60, CDWC at $48.50,
AFFX at $33, CHIR at $56 and JNPR at $23. .

MODEL PORTFOLIO

Today I added 1500 shares of THQ Inc. (THQI) to the model as it traded below $57 which
was my upper limit for a few minutes. The stock opened at $57.05 and moved up slightly
and then after a few minutes traded lower, dropping as low as $56.50. Not wanting to
miss this stock, I placed my buy order and was filled at $56.70 and that’s where the stock
entered the model today. It does look like this stock may need a few more days before it
gets going again and stops will be at $54.

The other two stocks QLGC and GNSS are looking good and QLGC hit a new move high
and closed at new move highs as well. GNSS as usual moved late in the day and closed
well and is close to new highs which are very bullish.

I want to remind everyone to be very careful about a possible reversal that could possibly
happen on very strong news out tonight and a rate cut tomorrow. Please do not think that
all is rosy with great earnings numbers and a rate cut as this can often be the best selling
opportunity for institutions as they often 'sell the news'. By the way if the market were to
gap up in the morning at the open it can often be best to wait at least ½ hour before
buying any stock and sometimes longer. It’s really up to you, but this rule that may help
you.

See you tomorrow.

4/5
Daniel J. Zanger

www.Chartpattern.com

P.S. Anyone get some of that PHSY I had listed last night. It traded up close to $3 to
$22.51. It’s selling at a great discount to other HMOs and has super earnings. It may
need some rest though after a big run from $14 starting last week.

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 November 2001

Hello out there stock fans. After a strong move up on Monday the market's trademark
signature of no follow through after a strong up day didn’t disappoint. Although I must
admit I was surprised by today’s weak opening considering the good news and after
market reaction on the news from CSCO. However late in the day after the Fed
announced its decision to cut rates by ½ point the Bulls finally took control with a burst of
volume and stocks rallied into the close.

We are just about 30 points away from that 50% retracement point from the May high to
the September low. It will be interesting to see how the market reacts when we get to this
point. Meanwhile the S&P just broke out of that trend line I had in last night's chart. This
should set this index free to move much higher from here. Now let’s get to some charts
that are ready to move. These stocks are a little late to the game therefore they are not
leadership quality in my opinion; however they look like they will reward in time.

This stock is in the same group as Goldman Sachs (GS) which I had here last week
which has moved up $5 since it was listed. This stock is ready to move now.

1/4
This stock acted well all day and it’s trying to break out. It along with PMCS listed last
night have similar charts and both are moving up.

2/4
Here are a few stocks to look at for the active trader with my buy points. NVDA at $50.75,
SEBL at $22, VRTS at $35, JNPR at $23, MCDT at $19, CACI at $68, NTAP at $17,
BRKS at $36, and EMLX at $28.

MODEL PORTFOLIO

Another good day for our model stocks today. Genesis Microchip (GNSS up $2.29) rallied
well near the end of the day, its favorite time to move. THQ Inc. (THQI up $.81) moved up
in constructive chart building action and like I mentioned last night this stock might need
more time. QLGC has an outstanding chart and it too moved with the market today.

All of these stocks look good so I thought I would enclose a fresh chart of QLGC and
GNSS tonight. As you can see by these charts more points are due to be chalked up into
the models plus column.

3/4
See you folks tomorrow.

Daniel J. Zanger

www.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 7 November 2001

Hello out there stock fans. A real tug of war this morning as the NASDAQ rallied up 14
points or so and then a heavy wave of selling with volume came in at the end of the first
hour of trading and squashed the ensuing rally. After this wave of selling ended an hour
later, the rally picked up once again and leading stocks were quickly hitting new daily
highs and looking strong.

However the NASDAQ could not decisively penetrate that 50% retracement area of 1859.
This combined with the fact that the NASDAQ went above the upper trading band brought
another very forceful wave of sellers late in the day. Most large gains were quickly erased
with some stocks even incurring losses by the end of the day. Let’s go to the charts and
see these items and how they impacted our portfolios.

With the NASDAQ breaking above that powerful descending trend just the other day this
index is now trapped between this 50% mark and the recent trend line that it just broke.
After a few days of rest this index needs to break out and above this 50% mark and in
time I believe it will. Right now however it appears most stocks need some rest while
some stocks still seem strong.

1/3
With the Feds almost giving money away, housing stocks are starting to make a move.
Some of these stocks are leaving nice basing areas and some need more time. Let’s take
a look at one of these as it could prove very fruitful.

This stock is a very thinly traded stock but it sure can have some big point moves up and
down. N V R inc. (NVR) has about 8 million shares total outstanding and it broke out of its
base today. One might wait to see if the stock can pull back some before considering
buying it as it leaped 11 points today. Earnings on this stock are some of the biggest in
the stock market today. Last quarter they were up 55% to $6.68 for the quarter while
revenues were up 13% to over $694 million. The P/E on this stock is at 7 and while
housing stocks historically trade at very low P/E this stock might get up to a P/E of 11.
Other housing stocks are TOL, SHLR, RYL, MHO, and KBH. However this one is my
favorite due to its large point moves.

With today’s big reversal there are no charts worth showing. There are also no active
trader picks until more horizontal action has been put in on most stocks. One thing I have
noticed on this move is that there have been a few stocks that have had big moves the
day they post earnings. A few stocks that have had big moves the day of earnings were
VRSN, MXIM, QCOM and a few others. Of course the day after earnings all of these have
gapped down with VRSN cracking down 10 points.

The point is that if you caught these on the run up day you could have netted 3 to 4 points
on each of these and sold them before the market closed locking in those points. One
stock that comes to mind and to be sure, no one knows if this will happen or not is Nvidia
(NVDA), which to my knowledge reports earnings after the bell tomorrow. No one knows

2/3
which way the market will go tomorrow or this stock for that matter; however this stock
could be one of those stocks that move up in anticipation of the earnings due out after the
bell. FYI.

MODEL PORTFOLIO

All stocks in the model QLGC, GNSS and THQI all did reasonably well today until the late
day sell-off reversed their gains. Stops for them are QLGC at $43, THQI at $54 and
GNSS at $43. Please note that I have raised the stops on QLGC and GNSS.

See you tomorrow

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Thursday’s market action was almost identical to Wednesday’s
market action with heavy end of the day selling on very high volume. Friday’s market
behavior was very subdued as traders were unwilling to step in front of another heavy
wave of late day selling and stayed on the sidelines most of the day. However Friday
didn’t see a heavy dose of selling but a slight bias to the upside at the close on lighter
volume.

The NASDAQ’s big players seem to be controlling this market with these waves of selling.
One reason is that we are overbought and twice we have gone above the upper trading
band which routinely brings in sellers. Lets go to the charts and see what’s going on
there.

This move on the NASDAQ is now 6 weeks old and the move on the NASDAQ that
started in April and ended in May of this year was 6 weeks old. Will this move expire at 6
weeks like the last one, or will it keep moving for many more weeks to come? One thing
for sure is that stocks are very extended now and many of them are showing very steep
trend lines that once broken could yield good shorting opportunities.

1/4
A leading index of this move has already broken its trend line. This suggests many
Biotech stocks will base out from here at best.

2/4
Here is a stock in this group that is mimicking this index.

3/4
They are very few stocks that seem like they will move up, but some of them were shown
here last weeks and are making slim progress. PMCS and CHKP are still trying to move
higher with CHKP doing better than PMCS. Others look like they want to move higher this
week and here they are with my buy points. NVDA at $53.25, JNPR at $24.50, EXTR at
$14.75, EBAY at $58, SEBL at $24, and RFMD at $24. If you chose to trade any of these
remember to set your stops just below your entry point at all times.

MODEL PORTFOLIO

Thursday and Friday saw two model stocks get stopped out of the portfolio. GNSS broke
a steep trend line when a fund that specializes in shorting stock put out a press release
that got posted on a Yahoo site that said this company is being sued for patent
infringement which turns out to be old news. The release also implied GNSS would lose
this suit and that sales were slowing down. This type of posting is slanderous in my
opinion and it contains nothing new and probably lots of lies.

Never the less sellers came in which is what this company wanted to see and drove the
stock down. This stock hit the stop set the night before at $43 and out it goes. I believe
this stock will make a comeback.

T H Q inc. on the other hand found little support after it broke out. The stock came down
on one of the sell off days mentioned above and filled it's gap up prompting other traders
to sell this stock. The $54 stop was hit and this stock is now out. Not sure if this stock will
make a come back.

The last and now lone stock in the model is Qlogic (QLGC) and it like many others in this
move are hanging in there well. Stops on this one will remain at $43.

See you tomorrow.

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Another tragic event in the skies of New York today and the
stock market barely flinched at the news. After a strong pre-market with many stocks up
.30 to $1, word spread about the plane crash and stocks quickly moved lower by as much
as two points, yet volume was not a factor in this move lower. Traders took note of this
and stocks started to move up with volume ensuing.

If this market had wanted to end this move up at this 6 week point, today was a golden
opportunity to do so. The fact that the market rallied and shrugged this off news suggests
to me that this market will go higher and this move will last longer.

Today we saw a number of stocks listed yesterday move well today. Checkpoint Software
(CHKP) and R. F. Micro Devices (RFMD) did best with each posting gains of about $2.50
each. Both look like they have legs and could tack on more points over the next few
weeks.

Tonight I have a few other stocks that look promising. First up is ISS Inc. which is in the
network security business. The action on this stock can be quite good at times and today
was one of those times. You can see how quiet this stock is while it’s in the base which is
a good sign. This is really the best 'quasi' base going right now but could use another 2
weeks to be considered a solid base. But, it is not unheard of to see stocks moving fine
from 4 week base patterns.

1/3
This is another game stock with fair earnings.

With stocks on the move and not resting more than a week or so this means buying
stocks right now has to come from small technical buy points. With that in mind here are
some stocks with my technical buy points for the active trader that have potential to move

2/3
up tomorrow. AMHC at $41.50, EBAY at $58, EMLX at $29, MERQ at $31, ISIL at $40,
NTAP at $17.50, OVER at $25, PMCS at $21, QCOM at $56.50, and VTSS at $12.

By the way that housing stock I had listed last week with a note to wait for a pull back
before stepping into the shares has completed the pull back and looks ready to move up
again along with other housing stocks. NVR is the stock I’m referring to and a buy area
would be good on up to $175.

See you folks tomorrow

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Morning news about yesterday’s airplane crash and news that
Kabul fell to the Northern Alliance overnight sent futures up big this morning along with
heavy pre-market volume and the stage was set for a big rally today. The NASDAQ
posted a hefty gain of almost 52 points while the DJIA moved up a healthy 196 points to
put this big cap index within just a few points of breaking out above overhead resistance.

Let’s first start with the DJIA and this trend line that once broken, should help move all
stocks higher for sometime to come.

One of the strongest groups today was the Biotech’s and who can blame anyone for
stepping into them as most technology stocks are extremely extended. Today’s move was
big enough to push the Biotech index back above its just broken rising trend line that I
had here the other night. This should be good news for Biotech stocks going forward. In
fact a number of Biotech stocks are in tonight’s active trader section below.

1/6
Last nights stocks and a few from last week were some of the biggest point gainers in the
market today at one point or another. Let’s review some of these sprinters as they’re
running quickly. First up is last night's big mover Internet Security Systems Inc. (ISSX)
which gapped up and ran nearly $5 today before a late day sell off moved this stock down
a few points. I have left my verbiage on the charts from when they were posted here.

2/6
Next up is a stock I had last week Quest Software Inc. (QSFT) which couldn’t make up its
mind if it wanted to move out of the base or not. That was until today when this stock also
gapped and ran over $4 on heavy volume.

3/6
This stock was a pick in the active trader section of last night’s letter and here you see
what I saw that prompted me to list this stock. This was an $8 gainer at one time during
the day before a pull back shaved a few points from today’s gain.

4/6
Here’s a nice Bull flag that I had on a mid cap broker stock a week ago and it’s tacked on
$9 since then. This is my original chart.

5/6
This stock I had listed the past few nights in the active traders section and this is why. It
looks ready to move even higher with today’s price action.

Here are a few stocks to look at for the active trader with my technical entry points. CACI
at $70, EBAY at $60, CDWC at $51.55, CELG at $3915, DGIN at $17.75, GILD at $67.75,
IDPH at $67.70, NETE at $15.60, PDLI at $37, PHSY at $20.60, PLAB at $28 and TMPW
at $36.10.

See you folks tomorrow.

Daniel J. Zanger

www.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 14 November 2001

Hello out there stock fans. A fair opening today with the NASDAQ moving up sharply for
the first half hour, until a heavy burst of selling squashed this mornings rally. This selling
persisted for most of the day dropping the NASDAQ into negative territory until the last
hour of the day when many stocks and the NASDAQ recouped loses and a number of
stocks then moved into the green zone.

The DJIA did better as it moved above that trend line in last night's letter. I would likes to
have seen a bigger point gain day on this index but this is the second up day following a
very strong day yesterday.

With today’s sloppy stock action there are few stocks to list tonight but there are four that
look interesting.

1/4
2/4
This stock has an inverted flag and pole and looks good for lower prices.

MODEL PORTFOLIO

Qlogic Inc. (QLGC) has a very definite rising trend line and as a result of this I will raise
it's stop to $45.

3/4
Stocks need more time before there will be any active trader picks.

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Lots of churning on low volume as stocks consolidate recent
gains near new highs that have been made over the past few weeks. Had this market
wanted to break down, this low volume would’ve made these stocks very vulnerable to a
sell off. So far so good and with more time to base out leading stocks might resume their
up trend.

Another positive on Friday was Qlogic (QLGC) breaking its rising trend line and only
yawning at the break of this line. Had this stock wanted to sell off, it would have broken
south hard when this line was hit. This is just as true of the market in general. Additionally
many charts are sporting very bullish patterns that have proven over time to be good
money makers. Let’s go to the charts and see which stocks have the most positive charts
to make money this week in the stock market.

These stocks are shown here with their excellent patterns even though they are not the
absolute strongest stocks in the market today. However, decent gains can still be made
on these patterns. The first few stocks have similar patterns and are some of my favorite
patterns to trade off of. Someday we might find some of these patterns in leaders such as
QLGC, EMLX, NVDA and a few others that are super strong.

1/4
2/4
Now on to a fresh chart of the NASDAQ to see why this index is churning at these levels
on low volume.

3/4
Here are some stocks for the active trader to look at with my technical buy points. MRVL
at $33, AFFX at $34, ACTN at $30, BREL at $25, GILD at $70, SNDK at $14, BRCD at
$31, CCMP at $72, PHTN at $34.50, PSFT at $34.35, RIMM at $22.20, CIEN at $20,

MODEL PORTFOLIO

Qlogic (QLGC) hit my stop as it crossed that trend line and this checks this stock out of
the model portfolio at $46 per last Wednesday’s later. This stock still looks good and it’s
quite possible that it will make it back into the portfolio in time. Meanwhile I will add a few
other stocks that have excellent patterns to the model this week.

I will add 1500 shares of VRTS at no more than $40.75 and it must trade between $37
and $41.75. I will also add 1500 shares of BRCD when it wakes up and clears $32. I will
pay no more than $33 and the stock must hit $32 before it goes into the model. Right now
this stock is trading at just over $29. I will also add 1500 shares of JNPR when it hits $27.
And 1000 shares of CHKP when it can hit $43.

See you folks tomorrow.

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Another good day for the market today with many stocks
hitting new move highs and breaking out of small base formations. Biotech’s had some of
the best gainers and many of them look like they will see followthrough tomorrow. Today’s
move also set up many other chart patterns that suggest this market has more room to
move and it should happen this week.

Here are few good looking patterns that have set up and are ready to break out tomorrow.

1/4
2/4
There are many stocks to choose from in the active traders section tonight. All of these
have excellent patterns to work from so expect many of these to be good movers
tomorrow. CHKP at $43, GMST at $28, ISSX at $33, EMLX at $28.50, MACR at $23.90,
NTIQ at $35, NTAP at $16.50, CRA at $28.50,, PSFT at $36.10, VRSN at $47, BEAS at
$17.50, GS at $90.70, DNA at $57, TMPW at $39, ERTS at $57, FLEX at $24.60, FDRY
at $11.80, FFIV at $24, ONIS at $9.75,

MODEL PORTFOLIO

Two stocks were added to the model today per last night’s letter. Veritas (VRTS) and
Brocade (BRCD) both were either in a target area or hit the buy point. BRCD hit $32 while
VRTS opened in the high $39 area which was the target on this stock. Tomorrow I feel
confident that Checkpoint Software (CHKP) will hit $43 and will make the model. Juniper
is very quiet right now and I think it’s trying to fade down to complete a handle on a Cup
and Handle pattern, but is having trouble doing so. It's buy point remains at $27.

Happy trading and investing stock fans. See you tomorrow as usual.

Daniel J. Zanger

www.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 November 2001

Hello out there stock fans. Another no followthrough day after a strong close yesterday
which has been the signature of this market move since the bottom 8 weeks ago. Today’s
heavy reversal action suggests that this is the start of a corrective process that could last
for sometime to come. Numerous stocks which have had sharp runs over the past 8
weeks but were showing evidence of stalling recently, finally caved in. K L A Tencor and
Broadcom (BRCM) and numerous others moved lower by around $3 each on expanding
volume.

Virtually all stocks have now violated their charts with either a break of a trend line as was
the case with QLGC recently or have dropped back inside their newly formed bases like
Brocade (BRCD). Even Checkpoint Software (CHKP) and Veritas (VRTS) failed their pivot
points or small bases. CHKP, VRTS and BRCD had some of the best looking charts that
you only tend to see in very strong markets. Those patterns can be some of the most
rewarding and are rarely seen. Needless to say I was extremely surprised when these
stocks failed in such a grand way today along with others that were acting very well such
as CIEN, EMLX and JNPR. Such is the NASDAQ when it decides to turn and head south.

Where is the NASDAQ heading? Let’s review the chart and get an idea where we might
find support.

1/6
Now on to some short plays. Remember, if you can find one of these up a few dollars in
price this would be the best time to buy and not as it is dropping in price. Also too, these
stocks dropped $3 to $4 today so you might get just one more day before a bounce
comes in and traps you if you short on the way down. Shorting can be very tough and I
believe you must be on real time to do this. Here are the charts.

2/6
3/6
4/6
Others to look at and ponder are NVLS, NVDA, MRVL, CCMP, ISIL, BOBJ, XLNX, MXIM
and most Chip and Chip equipment companies. Again not chasing them as they move
down is more rewarding and less frustrating.

Bright spots today were the healthcare and HMO stocks. Here you’ll find nice charts on
UNH and WLP with ADVP snapping back from very oversold conditions. It appears that
rotation is back into some of the defensive issues which is common when tech sells off.

Here is a defensive issue that is on the move coming out of a nice pattern. This stock is in
the Ethical Drug group and has only about 17 million shares total outstanding and a good
short interest ratio. Pharamacyclics Inc (PCYC) is its name and this company is very
speculative as it has no earnings. It’s also a slow mover and for the patient
trader/investor.

MODEL PORTFOLIO

A tough day today for our new stocks as rumors abound that VRTS will lose its ties with
HWP. This sent the stock tumbling this morning and well into the day. The damage would
have been much less severe had the market in general been in a better mood. Rumors
were denied after the bell and the stock is up $1.20 in after hours trading. Still this stock
should not have rolled over like it did. Stops will be set at $36.75.

Juniper Networks (JNPR) hit the buy point and went nowhere fast in a bad market. It held
up very well until the close of trading when it like other tech stocks caved in. Stops on this
one will be at $24.95.

5/6
Brocade (BRCD) failed its pivot point at $32 and it will need more time to rebuild is my
guess. Stops for this one will be at $30. This is a real shame too as this pattern along with
VRTS and CHKP’s were excellent looking patterns.

See you all tomorrow.

Daniel Zanger

www.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 21 November 2001

Hello out there stock fans. A stronger than expected book to bill ratio released this
morning by the semiconductor industry sparked a minor comeback today in technology
stocks. Just yesterday bellwether chip stock Intel (INTC) traversed its minor base and
didn’t break down like others did. Today’s chip news moved INTC back up into position on
its Flag and Pole pattern. This industry leading stock looks ready to lift off even further.
Should this happen ladies and gentleman, this will be very positive news for the entire
chip sector. Let’s see the chart and its positive pattern.

Here are two other stocks that benefited from today’s chip industry report - Maxim
Integrated Circuits MXIM and Advanced Micro Devices (AMD). MXIM has a very large
Cup and Handle the likes of which you rarely see. This is one of the best behaving stocks
I’ve seen in this market move and worthy of serious attention.

1/4
This stock is the little brother to INTC and often tags along with it. They both produce
operating chips for the PC. Its pattern is fair and suggests it will once again tag along. My
preference would be to own half as much of INTC rather than buy this stock. Leadership
is always preferable to laggards.

2/4
Today’s action also did some good for a Cup and Handle pattern that I had here the other
day. The pattern is still intact and as soon as this stock clears $63 this stock will be free to
move up to $70 and possibly higher over time.

Today’s action put the model portfolio into cash as all of the stocks hit their respective
stops. Also note that most of those stocks listed last night that have broken trend lines
were chip stocks and rallied on the news of the day. Some of those stocks may even rally
back up to the broken line and stop while others may go back above those lines. The
ones that move back above the broken trend lines will probably base out at high levels
and then move much higher in time. The stocks that do move above the trend line need
to be parked near the top of your watch list. This action signals very good strength and a
stock that probably will be much higher in price this upcoming year.

Happy Thanksgiving and see you on Sunday.

Daniel J. Zanger

www.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 25 November 2001

Hello out there stock fans. A quiet day of trading on Friday with stocks moving up
fractionally and maintaining their patterns. The NASDAQ is resting and refusing to move
lower as this index and other leading indexes like the QQQ’s, and S&P 500 hover just
below their 200 day moving average line. The 200 day is seen by many as an important
resistance line and could be one of the reasons this index has decided to take a well
deserved rest.

Numerous technology stocks have taken some time off too as they rest just below
resistance lines. Leading stocks like Braodcom Inc. (BRCM), Intel Inc. (INTC) Ebay,
(EBAY), Maxim Integrated Circuits (MXIM) and Cisco Systems (CSCO). Let’s look at
some of these points as they should prove to be good entry points once these stocks get
moving once again. These charts are monthly charts and not the usual daily charts that I
present here.

1/7
2/7
While technology stocks are taking a rest Biotechnology stocks are on the move with
numerous stocks breaking out and hitting new highs. Here are a number of these stocks
that have excellent patterns. As nice as they look they still don’t move as fast this time
around as technology stocks. First up is the Biotech Index which is sporting a large cup
but not much of a handle as AMGN is running up on good news and pulling up what
should be a down handle on the classic 'Cup and Handle' pattern.

3/7
4/7
This Biotech has excellent revenue growth. Revenues are up 198% to over $83 million
and earnings hit 40 cents for the quarter. There are just under 50 million shares total
outstanding for this company.

Here’s a stock that is acting good and now moving out of a nice pattern.

5/7
Here’s one that some institutions were buying at support levels after the stock broke down
on earnings news. This stock will come back and not buying new highs can be good at
times. This is a mid cap tech stock in the Storage sector.

6/7
Tomorrow I’ll have new pictures of the VIX and VXN. These indicators are getting very
low.

See you folks tomorrow.

Daniel J. Zanger

www.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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 26 November 2001

Hello out there stock fans. A great day for NASDAQ stocks with many of today’s biggest
dollar movers listed here in chart form over the past few days. Ebay (EBAY) up over $3,
Maxim Integrated Circuits (MXIM) breaking out of that very large Cup and Handle and
moving up nicely over $3.50. Broadcom (BRCM) breaking out and up over $3.

Biotechs were breaking out in droves today too. Last night selections Cephalon (CEPH)
and Imclone (IMCL) were two of the top dollar Biotech gainers today with each of them
exceeding $3 as both left their bases on good volume.

Today’s moves set up stocks to move over the next day or two so let’s get to the many
charts I have tonight and then on to the active trader section for those of you with chart
programs to view some more potential movers.

1/5
2/5
3/5
Here are the active trader picks for tomorrow. KLAC at $50.15, BRCM at $50, SRNA at
$24, AVIR at $37, BRCM at $50, BRCD at $32, ELON at $19, EMLX at $29, EXTR at
$17.70, IDPH at $71, HGSI at $47.50, PDLI at $39, NVLS at $39.80 and PSFT at $37.

4/5
I would like to posit a note about the behavior of the market in recent months - most every
time the NASDAQ has closed on its highs of the session like it did today the next day has
been followed by a very hard break to the downside. I sure hope tomorrow will bring
followthrough for once. Not enough time for the VIX or the VXN tonight but hopefully
tomorrow I’ll get to them.

See you tomorrow.

Daniel Zanger

www.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 27 November 2001

Hello out there stock fans. The NASDAQ didn’t fail us again with a good 30 point move
down this morning after a strong close yesterday. Then Intel (INTC) reiterated its 4th
quarter guidance and tech stocks began a sharp rally with numerous stocks leaping 2 to
$4 out of the blue. QLGC, VRTS, EMLX and GNSS and others found themselves up $4 in
the blink of an eye.

Then someone from the Fed said things would be slow in the 4th quarter and large gains
shriveled to losses on some stocks, while others saw their gains cut in half. Still, 2 stocks
from last nights letter were stellar performers today. Qlogic (QLGC) in the chart section
and Emulex (EMLX) in the active traders section were both up as much as $4 each.
EMLX sports a very nice tight chart pattern and moved earlier and with a bigger gain than
I thought it would at this time. Today’s move was on 100% greater volume than its daily
average volume and ended up closing at new move highs. Let’s see its chart as its very
positive looking.

Now on to some more stocks that have productive charts that suggest more gains are
due shortly. Other than BRKS the others are far more speculative.

1/4
2/4
Well folks you saw the headlines in the first paragraph above and much of this is in the
daily news on TV and will make the news in various papers. But is this the real reason for
the sell off or was this sell off rooted in the technicals of the charts. As you might expect I
believe today’s late day route was based on the fact that the NASDAQ touched its 200
day moving average line which coincidentally is at the same place the Fibonacci 61.8%
retracement mark is.

This 61.8% mark means that we have retraced 61.8% of the move from the May highs to
the September lows and it along with the 50% and 38% areas are standard Fibonacci
retracement numbers. Since everyone watches this number along with everyone
watching the 200 day you can just imagine the number of people seeing these items and
trying to sell in front of others to get the highest prices as this number was hit today.

The 200 day is an important line as all big moves in the stock market come when the
indexes are above this line. We have been below this line now for well over a year and
what a brushing year it’s been. Let’s see these items on the charts.

3/4
Until we can get above these two points mentioned above, this market could act sluggish.
However once through we could get a nice continuation move that could take us up to the
2200 area.

See you folks tomorrow.

Daniel J. Zanger

www.Chartpattern.com

P.S. EBAY had a slightly negative article in a national paper today and I believe this was
the reason for its weakness today. It still looks good.

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 28 November 2001

Hello out there stock fans. A weak opening today followed by an even weaker close as
leading stocks retreated back into their bases like Maxim Integrated Circuits (MXIM),
Emulex (EMLX), Microchip Technology (MCHP) and Broadcom (BRCM). It's very bad
news when strong stocks like BRCM and EMLX break down like this. This suggests that
this up move may have seen its best days for now.

Traders sensing the NASDAQ couldn't move any higher than 1965 where we find
resistance at both the 200 day moving average and the Fibanocci 61.8% retracement
number, asked why they should own stocks if the market's not going to move up.
Remember, most stocks move with the averages so if the NASADQ moves down so do
your stocks, and conversely, if the market moves up so do your stocks.

Today the NASDAQ closed on its low of the day, which as many of you know implies that
the next day is more often than not, followed be another down day. It could be down 5
points or 35 points and end the day that way, or it could end the day closing up after it
goes negative during the day. If this turns out to be the start of the corrective process,
where might the NASDAQ find support? Let's look at a few charts with trend lines and
support areas and then on to a Fibonacci chart with retracement points of this up move
from the September lows.

1/6
By the way the Brokerage group took a heavy nose dive today. This group is often a
proxy for the direction of the market. Lets also take a look at the Semiconductor index,
also known as the SOX index. It too has a steep rising trend line that will pose a potential
threat to the Semis and the market when broken.

2/6
Let's also look at the VIX and the VXN which are both in areas where stocks have gotten
into trouble.

3/6
We looked at a number of stocks to short last week but were taken out of them when they
reversed and moved up on us. Even though they broke trend lines the market was not
ready to give in just yet. With today's action though, now may be the time to once again
consider this strategy seriously.

4/6
5/6
Folks technology stocks are fast moving. Set stops on your stocks at 1 to 2 points below
your entry points at all times. The NASDAQ is known for quick moves, so be prepared.

In after hours trading Nvidia (NVDA) is up $4 to $55.35 on news that it will be added to
the S&P 500.

See you on Sunday

Daniel J. Zanger

www.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 2 December 2001

Hello out there stock fans. Thursday of last week saw a break away gap at the open after
the market closed on the low of the day the previous day. Even though the gap at the
onset of the trading was small, volume on leading stocks remained heavy as stocks held
their ground. By the end of the day stocks retraced much of Wednesday's losses and the
NASDAQ closed on its high of the day.

It’s not uncommon to see a gap up in the morning after a market or a stock has closed on
the low of the day but this normally happens after a good correction in a stock or index.
This is so rare in fact that I can find no other time on the NASDAQ index that can
duplicate this. This action of course negated my Wednesday report and of course I sent
out an early morning note to all alerting you of this. I also listed 4 stocks that moved up
anywhere from $3 to $5 each by the end of the day. Those four stocks EMLX, GNSS,
QLGC and NVDA I believe are in the top 10 of the strongest stocks in this market move.

The market refuses to go up and refuses to go lower. The market is merely digesting its
gains of the past 8 weeks before it moves higher and takes out the 200 day moving
average line. That line right now stands at 1958 and descends everyday. A close above
this 1958 point, which I believe will come this week, would be seen by many as very
positive and constructive action on the NASDAQ.

1/7
With that in mind let’s get to some fresh charts of stocks that are exhibiting excellent
patterns that suggest higher price are due shortly. Some of these may go right away while
others may need a few more days to a week. You’ll have to monitor them during the day
with a keen eye on the volume throughout the day. When a stock breaks north of a trend
line then it’s a technical buy. Look for volume to enter the stock soon after it passes the
buy point.

This first stock has excellent growth. Earnings for the last quarter were up 33% to .20
while revenues were up 59% to $170 million. The company provides communication
equipment for the wireless industry. This stock is not a super fast mover but like many
others has potential for very good gains over the next 4 to 6 weeks.

2/7
This Biotech company has excellent earnings. It’s not a fast mover either but steady gains
might be had on this one. Earnings are up 45% to .16 while revenues were up 63% to
over $69 million.

3/7
This stock is a new issue of just a few weeks and looks pretty good. In a strong group too
which is Chip Equipment. The Company is Magma Design Automation and I love the tick
symbol as it’s a perfect fit to the company name. It’s closing the gap on its losses, but the
revenue growth looks like an internet stock of just a few years ago. Revenues are up
389% to over $9.6 million and there are about 17 million shares that float, so this one has
the potential to zoom on heavy buying when and if that occurs.

4/7
Here is a chart from last week of a stock that looks super. The stock is working its way up
and out of the base on consistent heavy volume.

5/7
Here is another Biotech with strong earnings and revenue growth. For the last quarter
ending this September earnings were up 59% to .35 while revenues were up 60% to $211
million.

Here is one of the better acting tech stocks in the market. Earnings for this stock ending
last quarter were up 65% to .28 while revenues were up 87% to 368 million. This stock
was added to the S&P 500 this past week which took over 12 million trade-able shares off
the market.

6/7
Here are some stocks for the active trader on real time with my technical buy points.
SLOT at $61, CCMP at $71, ADI at $42.80, ELNT at $35, MRVL at $32, MIKE at $31,
SEAC at $31, MXIM at $55, and ESST at $20.

See you folks tomorrow

Daniel J. Zanger

www.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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 3 December 2001

Hello out there stock fans. Events overseas in Israel and Argentina put pressure on
stocks today with many of the strongest stocks selling off up to $2 during the day. Volume
was very light for many of these stocks with some doing just 50% of their daily average
volume as they moved lower in price like NVDA. Stocks coming down on light volume, is
generally considered good in a strong up trending market. Unfortunately there is no telling
how far these stocks might sell off before they turn up once again.

Meantime momentum is slowing for many stocks and groups and this is causing
numerous stocks to cross their rising trend lines. Even the SOX index has crossed the
trend line I posted here the other day. If there is no heavy selling in these Semi stocks as
they cross their trend lines then this implies that the sell off will be rather mild and we are
more likely in a trading range rather than a bear market of sorts. Let’s see the SOX index
once again and then on to the CBOE Tech index.

1/6
Tonight I have a few stocks to consider shorting and a few to possibly look at for long
candidates. First up are the shorts then a few longs.

2/6
This stock failed its break out when it hit new highs and now it’s breaking down. When
stocks fail their break outs this is quite common.

3/6
Now on to a few longs. I really don’t expect too much from these now. NTAP seems best,
but is still in the base.

4/6
We could see the market stay in this upper area for 5 to 6 weeks or so. This month we’ll
see tax loss selling as we near the end of the year and another dose of pre
announcements of poor earnings prior to January’s earnings. If this scenario does play
out over this long a period of time, it would give us many stocks with great looking bases
of 6 to 10 weeks.

5/6
See you tomorrow.

Daniel J. Zanger

www.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 4 December 2001

Hello out there stock fans. A powerful move today and the recent two-week indecision
pattern on the NASDAQ may have seen its last days. Today we saw another breakaway
gap at the open and the NASDAQ never looked back. This hearkens back to my words in
Sunday’s letter when I stated 'A close above this 1958 point, which I believe will come this
week, would be seen by many as a very positive and constructive action on the
NASDAQ.' The 1958-point is the 200-day moving average line and today's action broke
this nicely. Next line of resistance, which I don’t believe will add up to much now, is the
61.8% Fibonacci retracement mark at 1965. We've already sold on this once before so I
doubt this will impede our progress this go around.

By the way, I know it seemed a little crazy to some of you when I listed shorts for the past
week like I did, but I want to reassure you that I only move where the charts and history
imply we have the best odds. A good example and very similar to the move we just had,
was a 600 point run to 2880 in January of this year. The NASDAQ vacillated for about 7
to 10 days then rolled over and promptly moved to the 1670 area. Every NASDAQ move
is different and if you're going to play fast moving NASDAQ stocks you’d better be on
your toes. Hey you can always get back into the stocks, as the charts below will attest.

Today’s action built some great looking charts with many of them on the move due to
today’s very positive action. First up is the NASDAQ and then on to ten very good looking
charts. You will notice this list does not contain one of my favorites - QLGC. QLGC broke
out today and is a little too extended to list. However for you 'Grab and Go' artists this one
has more legs.

1/7
2/7
3/7
4/7
5/7
Here are two stocks from recent letters that had good charts and with this positive market
are extending themselves nicely.

6/7
Now we’ve seen some great looking charts with stocks set to move. However, will we see
another stalling of a great potential to move or will we promptly move forward like a strong
close on the high of the day like the NASDAQ did today. I’m hoping for the best.

Here are many other stocks that have turned up and look good to go. These are for the
active trader on real time where one can get a strong sense of the chart and volume
behavior. And of course it is just as true here as with the stocks above that the market
must be positive. KLAC at $54, MRVL at $34, NSM at $32, PLCM at $39, PMCS at
$24.60, BRKS at $40, and CHKP at $40.

See you lucky folks tomorrow.

Daniel J. Zanger

www.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.

7/7
Archive newsletter
chartpattern.com/archive-newsletter.cfm 5 December 2001

Hello out there stock fans. Merely cross and close above the 200 day moving average
line for the first time in over a year and the stock market goes nuts. Stocks once again
gapped up this morning and took off on very heavy volume. Many stocks moved up $3 to
$6 and most of the big winners of the day were listed here in the charts or in the active
traders section last night and most were in the top 20 dollar movers of the day. MXIM,
CCMP, QLGC, EMLX, MRVL and NVDA which was a pick from last week.

The NASDAQ exceeded what I thought possible for the day and is now at the upper
reaches of its trading channel that it has maintained for this entire move and its upper
trading band. Let’s look at these two areas that could tell the NASDAQ it’s time to rest
and take a breather. Other than this market being very extended past this trading band
the market is acting quite similar to the Bull market that started in 1998. That market
bottomed on October 8th and just kept on going right through to the first week in January
of 1999.

I must say one of the most impressive stocks in the market today and for this week is
UTSI. This stock selection from Sunday’s letter is without question having the time of its
life. It is also behaving like a super star to come, which is far more important than the
25% move it has done this week. Stocks that look and behave like this can often go on to

1/3
double or triple with ease. I’m so impressed by its actions; I just have to list this stock
again. Right now Its far too extended from its base to purchase now and one must wait
for this stock to set up again before stepping in.

I believe that the best of the best stocks in this market to own were listed in last night's
letter and they are in the first paragraph above. With the NASDAQ now above the trading
band like it is, I feel very uncomfortable listing any stocks to consider for tomorrow. In a
few days I’m sure we’ll see many stocks consolidate and be ready to move higher. Again
my focus stocks or top ten are QLGC, GNSS, EMLX, MXIM, CCMP, BRCM, MRVL, UTSI,
NVDA and KLAC.

By the way we understand a number of you AOL users are not receiving your emails.
This may be due to the new AOL 7.0 browser. We have contacted AOL to try and resolve
this. In the meantime you can always access the newsletter in the web site by 8pm PST.
We also suggest that you send a note to the AOL Postmaster alerting him to this problem
as well.

See you folks on Sunday and if anything special pops up I’ll send an intraday alert.

Daniel J. Zanger

www.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 9 December 2001

Hello out there stock fans. In last Wednesday’s letter after that powerful rally vaulted the
NASDAQ above the 200 day moving average line, I showed the NASDAQ had
subsequently gone outside its upper trading band and touched its upper channel line. I
mentioned the NASDAQ rarely stays outside these bands for long and that a rest to
consolidate those gains was probably in order. Thursday saw stocks going nowhere fast
and Friday saw stocks retreating $1 to $3 which helped push the NASDAQ back inside its
trading bands.

Friday’s retreat however was on very light volume with leading stocks such as Nvidia
(NVDA) trading just half daily average volume as it gave back almost $2. Maxim (MXIM)
and other leading stocks traded just a fraction of their daily average volume as well as
they too came down a point or two. This retreat on very light volume is very bullish and
normal in an ongoing strong up trend.

Let’s see the latest NASDAQ chart and those trading bands.

Next Tuesday the Fed has its FOMC meeting to once again make a decision on the fate
of interest rates. A quarter point cut is expected and therefore one should assume that
this is already factored into stock prices. I doubt that we will see much price action on

1/5
Monday as we wait for Tuesdays rate cut decision. More sideways consolidation is
welcome and needed as stocks and the market are very extended after last weeks big
run up.

Most of the strongest stocks that broke out during the run above the 200 day on
Wednesday still look very good with the exception being QCOM which has broken below
its break out point and in my opinion should not be held any longer. For a quick refresh on
who those strong stocks are - MXIM, NVDA, MRVL, EMLX, QLGC, BRCD, BRCM, GNSS
and UTSI.

These stocks are not ready to add to positions or to purchase new positions just yet, but
maybe by Tuesday they will have set up enough to purchase if we can get a day or two
more of rest. In the meantime I’ve dug up some potential movers that have low daily
average volume, which means they are thinly traded. I consider any stock that doesn’t
trade at least 2 million shares a day as thin. However these stocks are picking up steam
and their charts suggest higher prices are due soon.

This Computer software firm has very good earnings and only 6.4 million shares that
float. Earnings for the last quarter were up 52% to .32 while revenues were up 46% just
over $16 million. P/E on this one is at a meager 23 or just half its growth rate.

This next stock is in the medical supply arena. Revenues for the last quarter were up 56%
to $119 million and earnings were up 280% to .19. P/E on this fast grower is a paltry 27.
There are just fewer than 19 million shares that float or are tradable. The stock is just now
leaving its base, which means now might be the last good opportunity to jump on board.

2/5
Here is a stock that just exploded from its 11-month base. Earnings for this little
semiconductor equipment company for the last quarter were up 700% to .06 while
revenues were up $12.8 million. There are only a little over 18.6 million shares that float
on this one. Give this stock a few more days of rest before stepping in or consider dips as
an entry point is my opinion.

3/5
This stock is the most speculative of all of them.

Here is an old favorite Internet stock that had it's share of hard breaks, but earnings just
keep coming through. The P/E on this stock is at 44 while its growth rate is about the
same. The stock is poised to break a descending trend line and it might be worth a few
points when and if it moves.

4/5
I’ll see you folks tomorrow.

Daniel J. Zanger

www.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 10 December 2001

Hello out there stock fans. An interesting day today as leadership stocks were making
decent progress most of the day even as the NASDAQ traded in negative territory. Most
of the damage seemed to be centered in the Biotechs and may have accounted for most
of the damage on the NASDAQ. Let’s take a look at the NASDAQ where we see that
today’s action drops the NASDAQ closer to filling its most recent big gap up of last week.

Now on to the Biotech index (BTK) where we see that it appears to be rolling over. In fact
most stocks in this group are acting so poor right now I would not want to own any of
them until they start acting much better. As you know most of them failed to rally last
week during the big rally as the NASDAQ shot above the 200-day moving average line.

1/4
The NASDAQ and the other leading indexes are all awaiting tomorrows decision on
interest rates by the Feds. Their decision will be rendered at the usual time of 2:15 pm
EST. The futures market is forecasting a 90% chance of a 25 basis point cut. Let’s hope
we get that as the market is highly anticipating one and stock prices have already
factored in one.

There are few stocks to show tonight that look great, however the leadership stocks of
last week as still looking fine and waiting on tomorrows rate cut to advance further. Those
stocks are BRCD, BRCM, which is looking tired, QLGC, EMLX KLAC, MXIM, UTSI,
NVDA and GNSS. However Network Appliance (NTAP) does look and act well and the
stock is trying to come up out of a Cup and Handle formation. Here is the chart.

2/4
This next one is in the process of building a nice base, but really needs a week or two
more to complete it. If it leaves the base early, it will be prone to break out failure.

3/4
This stock too needs more time but can really move when the time is right.

Here are a couple of stocks to look at for the active trader if the market is positive. IBM at
$121, WIND at $19, OVER at $32.70, MATR at $33.75, OVTI at $9.20, EMLX at $38.55,
QLGC at $54, BRCD at $38.25, VRTS at $43, NVDA at $61, MXIM at $60.50, and GNSS
at $62.50.

See you tomorrow.

Daniel J. Zanger

www.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 December 2001

Hello out there stock fans. A very positive opening today as the NASDAQ traded up in
anticipation of that expected rate cut. Volume was light before the rate cut announcement
and volume expanded heavily after the news that the Fed had indeed cut rates by the
expected 25 basis points. Prices moved up very well with many stocks hitting new highs
while others moved up ready to leave small basing patterns.

All looked rosy until DJIA stock Merck (MRK) had its stock halted with news pending.
Merck announced lower earnings going forward and the stock reopened for trading
sharply lower. This break in price lowered the DJIA by 43 points, which spilled over to the
NASDAQ. Had this not happened I feel quite sure that the NASDAQ would’ve ended the
day much higher.

Three stocks listed here last night had very big outings today with Macromedia (MACR)
leaping to the upper trading band in a hurry as it scooted over $3 on super volume.
Network Appliance (NTAP) had a huge day too, it left its base and moved over $2 and
above the upper trading band on volume that exceeded its daily average volume by
nearly 50%. Websense (WBSN) lifted off and moved well at first, but closed near its break
out point on heavy volume. This stock per last night’s letter needed more time and since it
broke out early it will be more prone to break out failure.

Now on to some stocks that look appealing. The last time I had this stock here it was
coming out of a Cup and Handle formation and had a successful break out. The stock
raced up and hit an old high point of many months ago and sold off and has gone through
some corrective action since then. This stock, if you can believe this, has another Cup
and Handle pattern but this time much bigger. These types are often known as Saucer
and Handle as well. Here is the chart of this strong mover. Ebay Inc (EBAY) is the stock.

1/4
This stock looks fair and has been basing for about 5 weeks. It’s been suspect which is
why its not moved for a while but with a nice tight 5 week base you never know what this
stock might have up its sleeve. Technical buy point is when this stock crosses over the
trend line and hits $26.10.

2/4
This stock along with EBAY should’ve been in my strongest stocks section that I’ve been
mentioning most everyday. I had this on the descending line break that you see in this
chart a week ago and soon this stock will break out of a long 7 month base. This chart is
a compressed weekly chart.

Here is a leader in the online brokerage industry. A slow mover but over time it can
reward nicely.

3/4
Here are some stocks for the active day trader with my technical buy points. As usual the
market needs to be positive for most of these to work. MU at $32, ELBO at $43, ESST at
$21, NETE at $20, EXPE at $40, MRVL at $39, OVER at $32.50, RIMM at $24.60, JBL at
$31, SLAB at $35, TUNE at $24, and XLNX at $43.

See you tomorrow.

Daniel J. Zanger

www.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 December 2001

Hello out there stock fans. Another seesaw day with portfolios surging strongly positive in
the morning to going negative by mid day. As the day neared the end stocks surged
strongly once again back into the green by the close. This strong close after numerous
down days has set up many charts with mini flag formations including the NASDAQ,
which implies a strong day should be here tomorrow.

Leadership stocks once again should dominate with large gains - QLGC, NTAP, MXIM,
EMLX, NVDA, GNSS, VRTS and BRCD. The overall market is strongest when leadership
stocks take the lead and these stocks have set up nicely to move higher tomorrow. Let’s
take a look at some of these very exciting formations on my favorite stocks. First up
though is the Semiconductor index known as the SOX index.

1/4
2/4
Network Appliance is acting incredible. Today this stock added to its gain with a second
day of price and volume conformation. At the second day of coming out of its Cup and
Handle formation, volume today was way above yesterday with a near doubling of daily
average volume. The stock is very extended now and over 20% above its break out point.
Let’s see what this strong stock looks like now. This chart has my original verbiage still
intact. Remember, sell slower moving or sloppy moving stocks while holding the strongest
and best acting stocks. By doing this you will greatly improve your portfolio gains.

3/4
Here are some stocks to look at for the active day trader and chartist with my technical
buy points. Again for most of these, the market will need to be and stay positive for the
day. Some of these have little flags similar to ones shown in the charts above. EMLX at
$40. 70 FNSR at $13, NMTC at $36, VSNX at $18.80, BRCD at $40, GS at $93, IBM at
$123.10, INHL at $1840, KLAC at $57, MERQ at $36, MU at $32, PMCS at $28, PSFT at
$40, SMTC at $43.20.

See you tomorrow

Daniel J Zanger

www.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 December 2001

Hello out there stock fans. A number of negative news stories before the open today
caused stocks to gap down at the start of trading after yesterdays strong close. This quick
and sudden reversal after a strong close has been very common in this up trend which is
now approximately 11 weeks old. Stock prices weakened heavily later in the day when it
became evident this gap down would not be filled.

Today’s trading also filled the gap up that was created when the NASDAQ vaulted over
the 200 day moving average last week. I mentioned a few days ago that filling this gap
would signal weakness to come for the NASDAQ.

With today’s hard break many patterns were busted quickly as stocks undercut bases.
Two stocks that did this today were PMCS and MRVL. Neither of these stocks should
have traded below their lows of the little handle shown in the chart of MRVL last night.
This signals base failure and renders a sell signal when it happens.

Today’s trading saw the S&P 500 undercut recent support and also caused the DJIA to
close below the 28 day moving average for the first time in 6 weeks. More importantly the
NASDAQ’s long spike down today caused the NASDAQ to close right on its rising trend
line that’s been in place since this move got underway 11 weeks ago. A break of this line
will spell an end to this rally. Let’s see this trend line and channel line on the NASDAQ.

1/3
Now on to the S&P 500.

2/3
Now on to the DJIA

It’s possible that all cash might be your best friend for now. Even the strongest stocks in
the market can correct 20 to 50%. See you on Sunday.

Daniel J Zanger

www.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 16 December 2001

Hello out there stock fans. A large spike down on Thursday of some 65 points and the
NASDAQ failed it's Bull flag pattern formation. In doing so it broke support and collapsed
back into the base that existed prior to blasting off above that 200 day moving average
line. Friday’s action saw small price movement but the NASDAQ did find support at the
200 day moving average line. Let’s see this chart of the NASDAQ and its 200-day.

After 6 down days on the NASDAQ this index is now short term oversold and could be
ready to bounce. However, when it broke down it filled its most recent gap and any
bounce now in my opinion will probably be short lived. This bounce, should it come, will
give a good boost to selected leadership stocks. Leadership stocks outside this selected
group may in fact lag or falter.

Let’s see some stocks on the move or ready to move should the NASDAQ remain flat or
move higher. First up is our former model stock that is headed to the moon. Then on to
some stocks that might be ready to move higher soon.

1/5
This stock UTSI was listed here at $23 before it exploded to $31. It’s taken some time off
to retrace some of its gains, which is normal behavior. This stock could now be ready to
resume its upward ways.

2/5
This stock was asleep until it came to life a number of months ago. Earnings for this
medical company are up 550% to .26 this last quarter while revenues are up 29% to
$18.6 million. There are only about 8.3 million shares total on this stock.

This stock I listed recently before it tried to break out. It tried to break out but failed,
moving south with a negative market and retreating back into its base. Consolidation is
still very positive and it’s only a matter of time before it gets up and runs for real. Buy
point is when it crosses over the horizontal trend line by 1 point. That point is $81.

3/5
Friday saw a large and well known Brokerage Company add MRVL to its Focus list which
caused this stock to rally back up into its flag pattern once again. This is extremely
unusual and leads me to believe this house was accumulating this stock prior to the
breakdown. Naw, they wouldn’t do that would they? The stock ran up well after this and is
now back into the flag base. I would treat this stock with skepticism and only try this stock
when and if it can hit new highs at $39.75.

Here are some stocks with potential which may be new to many of you. I suggest
downloading them to your charting programs to keep track of them. VSNX, MROI and
IDNX are acting very frisky and could make some bigger moves going forward.

I’ll see you tomorrow.

Daniel J. Zanger

www.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 17 December 2001

Hello out there stock fans. As mentioned yesterday the NASDAQ was oversold and had
the potential to bounce and that’s exactly what happened today with the NASDAQ up
about 34 points. Numerous stocks moved up well with the Biotechs taking the lead as a
group. The Biotech index moved up 22 points and a number of Biotech stocks are setting
up with some nice patterns that could soon lead to much higher prices. We’ll show some
here tonight along with some other potential movers.

Two stocks on the move today were stocks that were listed here in the charts during the
past week. Siebel Systems (SEBL) and Cabot Microelectronics (CCMP) both hit their buy
points and moved higher and out of their bases. SEBL was listed here about 6 days ago
and CCMP was listed last night. Both hit their respective buy points today and closed
above them as well.

First up tonight is a chart of the NASDAQ which has reset its Flag formation and then on
to the Semiconductor index which like the NASDAQ has a flag like formation. Hopefully
things will work this time. One thing going for us this time is that many stocks did not
close on their highs, which has proven deadly to follow through players in past set ups.

1/5
2/5
3/5
This stock broke out then retreated back to its base and now has decided that in fact it
wants to run.

4/5
Here are a few stocks to look at for the active chartist or trader with my technical buy
points. VRTS at $45, MCDT at $28, CHKP at $43.50, FMKT at $23.60, HYSL at $21, MU
at $31, NETE at $20.25,

There are a number of economic reports due out tomorrow and the market could move
sharply off these numbers once they are released. This market is very driven by news so
keeping informed of economic reports the day in advance can be very helpful until the
economy gets its legs back under it.

See you tomorrow.

Daniel J. Zanger

www.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 December 2001

Hello out there stock fans. A very positive opening today that quickly faded except for just
a few stocks. Two of those stocks were shown here in charts with buy points at much
lower prices just this past week. Siebel Systems (SEBL) and Network Appliance (NTAP)
were strong all day with SEBL being the bright star as it explodes today after positive
comments from a well known brokerage house. SEBL gapped open this morning and
never looked back as it motored up nearly $4 on a 300% increase in volume. Daily
average volume is about 15 million shares a day and today it traded just over 50 million
shares.

Other than just a few stocks doing well on the NASDAQ the majority of stocks are
struggling. Much of this due to the big run that the NASDAQ has had and the fact that
many stocks are now near recent highs seen during this past summer. Let’s take a look at
one example of what can be seen on many stocks.

1/4
Here is one of the better acting stocks during this market move that has broken its rising
trend line. When long trend lines are broken it implies the end of a stock's move. This is
why it is good to have an excellent chart program such as this one by AIQ.

2/4
Other than these items above there are few charts to mention or show tonight due to
today’s sluggish market behavior on the NASDAQ. I will say that the market closed rather
strong which as we’ve seen during this move can often lead to a weaker day the following
day. In fact stocks across the board were down .50 in after hours trading. Could be
another tough day tomorrow following a strong close.

With this in mind however a few stocks perked my interest during the day and they closed
on their highs of the day. If this was a more normal market this would imply a continuation
of today’s move tomorrow. In this market however be careful of this close. They are BEAS
and MERQ. A few other stocks that might warrant looking at for tomorrow are, ELNT,
IDNX, IRF, GENZ and BSYS.

This market seems to be waiting for something and that something may be the capture of
Bin laden or the fiscal stimulus package that is now stalled in the Senate. Until then look
for a mixed market on the NASDAQ and just a few stocks moving up.

See you tomorrow

Daniel J. Zanger

www.Chartpattern.com

P.S. - For you AOLers, we finally received word today from AOL Network Operations in
Dulles Virginia. We are sending test emails to them so they can try to track down what is
happening with their mail servers and our newsletters. I would like to insert an excerpt of
an email I received from a long time chartpattern member and AOLer. FYI.

>Dan:

>

>A few years ago when I subscribed to the Rightline Report we had a similar

>experience with AOL E-mail. The editor wrote AOL, but problems continued so

>all subscribers were advised to use other E-Mail sources including Hot Mail.

>Also, Jim Collins' OTC Insight had problems and wrote the editor, but did not

>offer its subscribers alternatives.

>

>AOL has a history of problems like those you are experiencing. In some ways

>it provides useful services like the 'white' and 'yellow' pages to locate

>addresses, etc.

>Hot Mail has been reliable and I continue to use that service for OT Insight,

3/4
>mentioned above.

>

We are committed to solving this problem and appreciate all the help you AOLers have
given us in getting AOL Net Ops' attention.

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 2001

Hello out there stock fans. I mentioned in last night’s letter that today could be a tough
day in the markets as stocks were trading lower in after hours with a .50 cent discount
across the board. Today saw the market open weak then turn positive on word of a
stimulus package compromise. The markets then turned negative again as this was not
confirmed by the Democrats. This was the case only for the NASDAQ of course, as the
DJIA and the S&P closed up on the day with the DJIA closing just under its 200 day
moving average line.

Leadership stocks of this move, the momentum stocks, have been struggling for some
time and today’s action was the final blow to most of them. Many of these stocks reside in
the SOX index. Today the SOX index crossed over and closed below its rising trend line.
This implies that this group will correct and base out from here.

Other leading stocks are in the Storage group and most of these are stalling out with one
or two of them like QLGC breaking their rising trend lines. At the same time EMLX is still
hanging in and looking like it wants to move higher. However, its just a matter of time
before this one rolls over too in my opinion.

Let’s get to a few charts. First up is the NASDAQ and then on to the SOX. Then we can
move to a few other groups that have some excellent charts.

1/6
Today saw defensive stocks turning up, such as insurance and financial stocks. This
rotation away from the higher beta or faster moving stocks into slower moving stocks
suggests that smart money feels that tech stocks are not the place to be at least in the
short term. Here are a few financials that look appealing in the charts. Again these stocks
require time and lots of No Doze as they take their sweet time in rewarding those that
speculate on them. Here are some that look good now.

2/6
Housing stocks are on the move and I highlighted N V R here about 8 weeks ago when
this stock was at $160 a share. Today it squirted out of a high level base and tacked on
over $9 to $209 a share. Here’s another potential mover in this sector and it’s just leaving
its pennant flag formation. Other stocks in this group are KBH, PHM, BZH, TOL, and RYL.

3/6
You folks may remember that new radio stock that I highlighted here a few weeks ago at
$14. It’s on the move now with more gusto along with its competitor. The first one I listed
was the new XM radio with the tick symbol of XMSR. The other one really rocketing today
for such a small priced stock was Sirius Satellite Radio (SIRI). Here are their charts.

4/6
Selected semiconductor equipment stocks and semiconductor stocks are looking very
vulnerable to a sell off. Here are a few to look at for those interested in shorts.

5/6
Others worth looking at for selling longs or possible shorting are NVLS as it just failed to
hold its trend line break out, ALTR, AMAT, VRTS, MXIM and most other chip and related
stocks.

I want to wish everyone a very happy holiday. Monday is a half day of trading and
Tuesday the market is closed. This means I will be back on Wednesday of next week.
See you then.

Daniel J Zanger

www.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 December 2001

Hello out there stock fans. A nice rally today in a time that is seasonally strong. The
NASDAQ was up about 35 points intraday until OBL (Osama Bin Laden) news hit the
street later in the day helping to erase half of these gains by the end of the day. The DJIA
was on track to close above its 200 day moving average today until OBL news also
caused this index to close below this moving average line.

The NASDAQ appears to be trading in a descending channel formation and is close to

breaking a small descending trend line near the top of this formation. It could be that the
NASDAQ is just putting in a high level consolidation after breaking its recent 11 week
rising trend line in a similar manner observed during January 2000 before that index
moved much higher. These high level consolidations are just resting areas in an ongoing
up trend. By the way, EBAY displays a similar chart and should move as the NASDAQ
does.

Also moving in a direction that is unfortunately not associated with a positive market is the
VIX and the VXN. Here are some compressed weekly charts. In these charts you will see
that these indexes are in an area that can suggest that a negative market environment
could be close by.

1/6
With that in mind let's get to some potential movers. Immucor Inc. (BLUD) This company
manufactures and sells reagents and automated systems for use in hospitals. Earnings
were just released and are up 475% to .30 while revenues are up 24% to almost $21
million. P/E is at a very reasonable 33. There are a tad over 7 million shares on this little

2/6
mover. It's a little extended from its base so a pullback needs to happen before
considering this stock. In time that pullback will happen just like the one on SIRI last
week, which gave you an excellent buying opportunity.

Oil drilling and service stocks were breaking out today. Patterson Energy (PTEN) has one
of the better charts and great earnings for this past year. Even though earnings are
expected to slow down this year this stock like others in this group are on the move in
anticipation of tighter oil supplies and therefore higher prices later this year.

3/6
This stock is making its second appearance in just 10 days. The first time I offered it here
was in this compressed weekly chart, which I'll show here again with the original
verbiage. The chart below is the daily chart showing that it's ready to break out of this
small consolidation area.

4/6
This stock is making its third appearance in three weeks. It still looks and acts fair.
Earnings growth and P/E are also very good to date.

5/6
I've been watching this stock for sometime and was hoping it would rest much more than
we've seen before taking off again. Oh well, you get what you get and hopefully things
work out.

Due to the holiday schedule I will be back tomorrow to make up for not being here this
upcoming Sunday. After tomorrow I will be back on Wednesday of next week.

See you tomorrow.

Daniel J. Zanger

www.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 27 December 2001

Hello out there stock fans. The NASDAQ turned up modestly today thereby pitting the
NASDAQ against yesterday's close and its descending upper trend line of a channel
pattern. This channel pattern formed since the NASDAQ broke its rising trend line two
weeks ago. Today's upturn from yesterday's close without breaking the trend line
suggests that tomorrow could be the day that we break this trend line and head back to
the NASDAQ 2065 area. Let's take a look at this channel in chart form.

Here are a few charts that look interesting.

1/4
This stock was downgraded after the close of trading today so it could be under pressure
tomorrow. However the chart is excellent.

2/4
This stock was shown on December 2 when it was at $22. Since then it has taken it's
sweet time before powering ahead to hit $30 today on heavy volume. Its very extended
now but revenue growth is huge. In time I will have it back here after it rests and highlight
its earnings numbers again.

3/4
This stock has come a long way but the tight chart pattern is very conducive for higher
prices. The stock budged a little today as volume picked up which could suggest this
stock will move soon. Regardless, it is somewhat extended so be careful.

Should the NASDAQ break its trend line tomorrow these stocks could tack on anywhere
from $1 to $3 each tomorrow. ACAM, CCMP, NVDA, VRTS, BRCD, MXIM, QCOM,
BRCM, and MERQ.

Due to Tuesday being a holiday and Monday most likely a half day or at the least being
very slow, I will not have another letter until Wednesday of the new year. Happy New Year
everyone.

Daniel J. Zanger

www.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