** Don Wolachuk Interview 8/11/00 **
Don Wolanchuk's (Timer Digest's 1999 Market Timer, Gold Timer & Long-term Timer of the Year ) interview on today's The Stock Market Observer, a local television stock show in Chicago that he speaks on every Friday at 2:15pm CDT. ( DW= Don Wolanchuk and LM= host Linda Marshall)
LM: And we're back with Don Wolanchuk of the Wolanchuk Report. Hello there Don.
DW: Hello Linda, how are you?
LM: I'm fine.
DW: Another weekend; the markets' flying. Don't you love it?
LM: Well the markets' fine. These techs are still under pressure; they're not flying so much.
DW: The techs are under accumulation. Heavy, heavy, accumulation. And the Bears who pinned their hopes on a crashing market are going to be pinned to the wall.
LM: Ok, heavy, heavy, accumulation in what sectors of the tech area? Where do you see it?
DW: Well, that's what all these declines are conducted for. They're conducted for purposes of accumulation and it's been going on for years. That's why we're stair stepping to the heavens. But the amazing thing is sentiment is measured by investors intelligence. While the market has been dropping during the recent slide, the number of Bulls kept decreasing and the number of Bears kept increasing, which was really Bearish. But now we're going up and the number of Bulls are increasing. Now that's a phenomenon we haven't seen in many years.
And Timer's Digest, that tracks our service, shows only 3 Bulls in the top 10 the last count that I had.
LM: I know.
DW: So sentiments are really in pretty decent shape. And with market vane number of Bulls around 30%, that's 70% out of the market. So, rather amazing that sentiment is in such fantastic shape with the DOW now above 11,000. I mean that is rather incredible.
LM: Ok, onward and upward. We had a viewer call that wanted to know about LMLP.
DW: LMLP we got stopped out of. And there is so much news surrounding that particular company that we're waiting for it to calm down. But we're not in that stock.
So those who got stopped out, they simply used their funds and moved into lower priced stocks like WaveRider (WAVC) or even Valence Technolgy (VLNC) and some of these companies that really aren't saddled with the kind of things that LMLP seems to be saddled with here, at least temporarily.
LM: Temporarily only?
DW: This WaveRider (WAVC) is really setting up for some big numbers here in the days ahead. We liked it from .35 cents and here we are, roughly 14 times your money. What's the percentage on that?
LM: Well, there's lots of those aren't there Don?
DW: Anyway, the market continues to act like a million dollars with the market climbing nice and slow. Sentiment is in great shape. The Bears are coming out of the woodwork and the technology sector is under accumulation. I really can't ask for better conditions than that.
LM: How does Valence (VLNC) look?
DW: That's another one. Valence Technology (VLNC), along with some of these other companies, like MicroVision (MVIS), all got great looking bullish chart patterns.
These are chart patterns that usually lead to rather abrupt advances. We saw the same thing in IBM. It came down and tested that $104 level, $100 level, then took off straight up. Look at the accumulation that was conducted in Microsoft (MSFT) all the way down to $60 range.
LM: Where do you think we're going to see the biggest moves in the tech sector, in the large caps?
DW: Well, with the DOW having really been in a fabulous looking, what we call an Expanding Triangle as measured by the Dow Jones 65 Composite, once that upper trend line gets taken out, the market should really come alive. And a hint of things to come is the Elliott Wave Structure of the Dow Jones Utilities Average which, in my view, is really set to explode.
LM: What do you make of that, if it explodes what happens?
DW: Well, I believe interest rates are just going to keep heading south.
LM: Ok. That often is the harbinger of lower interest rates.
DW: Certainly.
LM: Ok. Well, we thank you Don.
DW: Well, you have a great weekend.
LM: And you too, talk to you next week. Don Wolanchuk of the Wolanchuk Report. I'm Linda Marshall. |
