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<DIV><FONT size=2>After a severe sell off from May 1 till May 7, CSCO released
some good news.</FONT></DIV>
<DIV><FONT size=2>The last half of the May 7 [point A] session buyers were
pushing price higher and the result was a Doji.</FONT></DIV>
<DIV><FONT size=2>Perhaps some people were suspect of the good
news.</FONT></DIV>
<DIV><FONT size=2>The news were so good to make next day open at +16% andclose
at +24% with ~200M shares !!!</FONT></DIV>
<DIV><FONT size=2>The great gap up captivated the whole market [I will
never stop repeating the directionality of N100].</FONT></DIV>
<DIV><FONT size=2>Enthusiasm was the only word again. a simple proof is the
declining volume until point B.</FONT></DIV>
<DIV><FONT size=2>What happened at B, 7 days later ? Nothing important asfor
the fundamentals.</FONT></DIV>
<DIV><FONT size=2>The good news were still good. The evening star in the circle
is descriptive enough.</FONT></DIV>
<DIV><FONT size=2>The clear message was "Let us sell this CSCO"</FONT></DIV>
<DIV><FONT size=2>This sentiment was more robust, it lasted 27 days, not
7.</FONT></DIV>
<DIV><FONT size=2>Watch the increasing volume all the 27 days.</FONT></DIV>
<DIV><FONT size=2>The gap up was progressively filled, to verify, once again, a
golden T/A rule.</FONT></DIV>
<DIV><FONT size=2>At point C buyers seem to prefer CSCO again. What for
?</FONT></DIV>
<DIV><FONT size=2>Of course not for the great news of May 7 !!</FONT></DIV>
<DIV><FONT size=2>Some other reasons perhaps.</FONT></DIV>
<DIV><FONT size=2>Technical Analysis is "blind" and can not read fundamentals,
good or bad announcements, buyers or sellers</FONT></DIV>
<DIV><FONT size=2>sentiment.</FONT></DIV>
<DIV><FONT size=2>Sometimes it is better, at least I think so.</FONT></DIV>
<DIV><FONT size=2>Underline also Volume at C, it is ~the 60% of volume at
A.</FONT></DIV>
<DIV><FONT size=2>Confidence face is covered with bruises, especially after the
WCOM news.</FONT></DIV>
<DIV><FONT size=2>As for the future, it is unknown as always.</FONT></DIV>
<DIV><FONT size=2>It is time to go back to my technical point of view.
</FONT></DIV>
<DIV><FONT size=2>Again. </FONT></DIV>
<DIV><FONT size=2>It is more safe.</FONT></DIV>
<DIV><FONT size=2>Dimitris Tsokakis</FONT></DIV>
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