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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Zeev Hed who wrote (1883)9/17/2000 3:16:16 PM
From: Jim Willie CB  Read Replies (3) of 65232
 
Zeev, what effect do you expect from large IPO calendar ???

been reading about the increase in IPO's from last year
Sept and Oct show large increases over last year
as determined by dollar amount

we had a reduction in July and August
we have a rise in Sept and October

this IPO effect would tend to explain some of the weakness in the Dow and NazComp

what are your views on this IPO effect?

personally, I think overriding in importance is the transition for source of worry from higher Fed-inspired interest rates TO lower expected earnings as a result of Fed-inspired economic downgearing... it helps to feel more confident that the Fed is done tightening in this cycle... but the climax on taking steam out of earnings power seems to be underway

Sept options expiration certainly seems to be a roadblock that has been cleared... they used the prospect of weaker earnings and certain tech sector downgrades to engineer the Naz decline

appreciate your shared view, Jim
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