To OTC Journal Members:
 

Market Comment- Has the Paradigm Shifted?

After a couple of huge weeks the Bears have been looking for the market to pull back, but instead it continues higher. Despite light volume, stocks seem to want to drift higher, suggesting a lack of selling pressure.

The paradigm may have shifted. For the past 2 1/2 years, market surges have been selling opportunities. We may have evolved to a market where pullbacks are now buying opportunities, suggesting we have made the transition from a market trending down to a market trending up.

This year there have been three major drops in the NASDAQ- January to late February, May to late July, and late August to early October. The NASDAQ has now broken out above the downtrend lines created by both the May and August pullbacks. A break above the downtrend line from January would confirm the Bull is back. As you can see from the chart, the NASDAQ has now easily broken its downtrend line from the May pullback.

We believe three factors are driving the market up:

• Earnings- 90% of companies have reported better than or equal expections for earnings.
• Lack of negative news- 911 and Enronitis both killed the market. The flow of bad news seems to be drying up.
• War with Iraq temporarily on hold: The Bush administration seems to be willing to play out the process of working with the UN before starting the inevitable war. This could delay the event for months.

We have recently provided some very strong trading ideas. We got a number of emails from members who acted on the QLogic idea, and made  substantial short term gains on the call options.

Look for the OTC Journal to provide more trading ideas. A move in the NASDAQ to about 1340 would bring a few short or put ideas. A move down to the 1200 range in the NASDAQ would bring a few trading ideas on the long side. Right now, our best idea for a trade is:
 

Calypte Biomed (OTC BB: CALY): Don't Miss Tomorrow's Conference Call

Just prior to the market's open tomorrow, Calypte will be issuing its September quarterly earnings report. Shortly thereafter, at 11:00 Eastern and 8:00 Pacific time, the management of the company will be conducting its quarterly conference call to discuss the results and give us an idea of what the future holds.

To listen in, dial toll free 888-747-3510 in the US and Canada. International callers may call 703-871-3085. If you wish to listen to the call streamed over the internet, go to the company's web site at www.calypte.com.

If you are unable to participate in the call a replay will be available through October 26, 2002 by calling 888/266-2081. International callers should dial 703/925-2533 for the replay. The replay confirmation code is 6262603.

As you can easily see from the chart, this stock has been in a solid uptrend since early October, and we fully expect to hear good news tomorrow. We believe the trend will continue as long as the company continues announcing positive fundamentals developments, and the company does not draw down on its equity line of credit. Draw downs during September killed the stock temporarily, but since the company has ceased this practice the stock has been trading well. Any further information that Calypte's need to raise capital has ended would be bullish for the stock.
 

XML Global (OTC BB: XMLG) - Progress Continues

We've been getting a lot of emails about XML Global recently. Investors are puzzled by the stock's inexplicable $.15 price, while the company is completing its $2 million round of financing for restricted shares at $.20. 

Recently XML has announced two new strategic alliances. Sales are continuing to improve. The company plans to complete the remaining $700,00 of its pending financing.

Frankly, there is no rational reason for the stock to be down. The company is in far better shape than it was last May, which is the last time this stock traded at these levels for any significant amount of time. Look for an upside surge out of the blue on the back of some major corporate development in the foreseeable future.

This could be one of those situations where a few individuals are throwing in the towel just before the stock climbs. How many times have you sold, only to see a stock much higher one month later? If you only knew!!!!!

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

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MarketByte LLC has been paid a fee of 250,000 free trading shares of Calypte common stock by First Stage Capital for coverage of Calypte Biomed. On August 12, 2002, MarketByte LLC entered into an agreement directly with Calypte Biomed to continue coverage of the company through October 31, 2002. Calypte Biomed has pledged $25,000 cash as compensation, and an additional 300,000 shares of free trading stock were paid by a third party on behalf of the company. MarketByte LLC has been paid the following fee by XML Global for a year of representation extending from February 2, 2001 to February 2, 2002: $100,000 cash, 60,000 shares of free trading stock, 60,000 shares of restricted stock which are now free trading, and 60,000 options exercisable at $2. The 60,000 shares of free trading stock have been contributed by a third party on behalf of the company. MarketByte's contract to represent the company expired February 2, 2002. The contract was renewed for another year, and XML Global has paid compensation of $20,000 in cash and one million shares of newly issued restricted common stock. Please review our policy on selling shares found in our Mission Statement on our home page.

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