INTC is the maker of semiconductor chips, supplies the computing and communications industries with chips, boards, systems and software that are integral in computers,servers, and networking and communications products. For the39 weeks ended 9/30/00, revenues rose 18% to $25.02B. Net income rose 60% to $8.34B. Results reflect higher unit salesvolumes of microprocessors and increased realized gains on the Company%s Micron Technology holdings.

January 18, 2001

Intel sparked the technology stock rally this week by reporting better than expected earnings on Tuesday after the close. Intel reported profits of $2.63 billion, or $0.38 a share, which was a penny ahead of consensus estimates. However, Intel did warn that the first quarter will likely be at least 15% lower than the fourth quarter. Intel was cautiously optimistic that a global economic recovery could spark renewed buying of computers later this year. It is important to note that Intel rallied despite a somewhat negative outlook for the immediate future. When downtrending stocks rally on bad news that usually indicates that an important bottom has been created and the path of least resistance is back up. The rally could continue tomorrow due to the after hours rallies in Microsoft (MSFT) and Sun Microsystems (SUNW) following their earnings reports. INTC has found some major support at $30.00 and the stock has tested this price five times in the past couple of weeks. We are bottom fishing on this play because Intel looks very good on a risk/reward basis. The MACD is positive and a move above $33.06 could trigger a test of the 50-DMA at $36.19. A close above the 50-DMA could result in a more substantial comeback rally.

Picked on January 18th @ $32.19
Change since picked +0.00
Stop Loss @ $29.75

February 1, 2001

Intel slipped a bit in the wake of the most recent rate cut. A little short-term profit taking does not bother us, though, because Intel has been impressive when considering that there continues to be earnings woes from other semiconductor industry leaders. Yesterday, National Semiconductor (NYSE:NSM) added its name to a growing list of companies that have guided analysts lower concerning the current quarter's profit outlook. The PHLX Semiconductor Index (SOX) was under mild pressure today due to the NSM warnings, but Intel showed some nice relative strength by staging a small rally. Intel's stock has found some resistance just below $39.00. A move above this price would likely result in a rally to at least $41.00. There has been a small improvement in the Money Flow and OBV as sellers are becoming less vociferous. There is very good support at the 50-DMA of $35.19.

Picked on January 18th @ $32.19
Change since picked +5.62
Stop Loss @ $34.00

January 30, 2001

We predicted in our last update that INTC could start the week with a little momentum due to its strong finish on Friday. Although Intel's stock was unimpressive today, the company did have a positive announcement. Intel introduced two new low power mobile PC chips today that feature breakthroughs in power consumption technology. Tomorrow could be a little rough in the early going for chip stocks. Applied Materials (Nasdaq:AMAT) warned that its first quarter will not meet current estimates. AMAT is the largest semiconductor equipment company in the world and bad news emanating from that company could hurt others in the industry. INTC continues to stay above the important support offered by the 50-DMA at $35.31. INTC could be on the verge of closing a trading gap between $38.50 and $41.00. The MACD continues to move higher, which is a good sign that the $38.50 resistance may fall soon. The RSI still has plenty of wiggle room before indicating an overbought condition. Please note that we are attempting to lock in profits by raising our stop to $34.00.

Picked on January 18th @ $32.19
Change since picked +4.81
Stop Loss @ $34.00

January 28, 2001

After a brief sell off on Thursday, following analysts statements that Intel is likely to start aggressively cutting their chip prices, the stock closed the week with a nice buying flurry. This major technology leader appears to be attracting cash from an unlikely source, value investors. There is a growing perception that the worst is now behind the company and that the path of least resistance for the stock is probably up. The fact that the stock managed to close above the critical 50-DMA on Friday bodes well for the coming week. The 50-DMA should offer the initial support on Monday at $35.41. Money Flow and OBV both confirm that the buying strength in Intel shares was solid last week. Up days were characterized by solid volume of over 80 million shares traded while down days only saw volume of just over 40 million shares. The MACD looks very good due to its slow, maintainable ascent. Last week's high of $37.06 should provide the initial resistance this week. Further resistance can be found at $39.00. A move above this price could result in a gap-closing rally to $41.00.

Picked on January 18th @ $32.19
Change since picked +3.69
Stop Loss @ $29.75