UTX has four principal operating segments: Otis (elevators and escalators), Carrier (heating, ventilating & air conditioning systems), Pratt & Whitney (aircraft engines and space propulsion), Flight Systems (helicopters electrical systems). For the 9 months ended 9/30/00, revenues rose 13% to $19.82B. Net income from cont. ops. applicable to Common rose 79% to $1.36B. Results reflect a strong performance from Carrier & higher operating margins.

December 10, 2000

This DOW component is a leader in several manufacturing sectors including air conditioners, helicopters, aircraft engines and elevators. Their Pratt & Witney aircraft division suffered some bad news on Friday, which is one reason why the stock was left behind during the solid advance that the DOW enjoyed on Friday. Several European commercial aircraft that use the company's engines have been grounded for immediate inspection after discovering some mounting bolts that were cracked. Pratt & Witney claims that the possibly defective bolts will not be a wide spread problem. Obviously the bad press did not help the stock. However, UTX did establish a new all-time high of $77.19 last week. Moreover, Friday's early action saw the stock test this resistance level, but the stock failed to break through. Thursday's low of $74.44 should provide support. The next point of support is likely to be $72.00, which is the 10-DMA. The MACD is still positive and rising. Money Flow is solid but the OBV appears to be slipping. It is hard to tell what the market will do on Monday after Gore's Florida Supreme Court victory. As always, keep an eye on those support levels.

Picked on December 5th @ $75.88
Change since picked -1.07
Stop Loss @ $71.00

December 14, 2000

United Technologies could not shake off the broad declines seen in the Dow. The last little surge of selling knocked UTX's shares below our stop today. If UTX can hold the support offered by the 50-DMA at $69.56, we may try and play this stock again because UTX still has one of the better long-term charts in the market.

Picked on December 5th @ $75.88
Profit/Loss -4.88 (6%) (Stopped @ $71.00 on Thursday)
Best Profit +1.31 (2%)

December 12, 2000

The shares of United Technologies have not accomplished much this week, even though the Dow Industrial Average (INDU) has moved up modestly. Yesterday's weakness may be attributed to dividend players moving out of the stock as a $0.225 dividend was paid yesterday. In addition, the company's Pratt & Whitney division lost the battle for a $1.4 billion aircraft engine contract from Virgin Atlantic Airways. However, analysts figured that Pratt & Whitney only had a very small chance to win the order. UTX appears to have established support at $72.00 during the past two trading sessions. If this support fails, we could see our stop executed at $71.00. Our stop is just above an up trend line that began in November. We believe that a rally could ensue later in the week due to triple witching and that could drive the stock to a re-test of its all time high of $77.19. There is some very short-term resistance at $75.00, the trading high the past two days. The MACD has slowed its ascent, but it is still positive. Money Flow and OBV have also slowed down the past couple of days. The bottom line is that UTX better get going soon or this play will not work. Earnings and a possible split announcement are still a month away.

Picked on December 5th @ $75.88
Change since picked -2.38
Stop Loss @ $71.00