Tom I think this is a valid post, taken from another thread,
MKT DOWNTREND OVER,I bet a few more pe
by: blue_star_gas 12/6/00 9:16 am
Msg: 45964 of 45969
^^^^^^^^^^^^^
I bet a few more people who are new and small investors are happy that Governor Bush will be President
now that their IRAs, etc. rebounded yesterday! Beyond that, we had Mr. G send clear signals that the
FRB will go to neutral on 12/19. Further, the px of oil fell beneath $30 per – a good confluence of events.
The DJI rose 338, while NASDAQ rose an incredible 274 points, which is its biggest percentage move
ever!! The A-D index posted 1235 net advances, which is fine. The following are some of the positives
in yesterday’s market in no particular order.
1. Cash levels have doubled in recent months.
2. Heavy short covering by Hedge funds.
3. XLNX posted a warning, and it rose over 2 points, at best. Last week it would have been crushed.
When stocks rally on bad news, that’s great action that helps signal bottoming activity.
4. There were a myriad of downgrades last week that were the lows for most of them. XLNX got
downgraded on 12/1 at 35, and it closed at 43-1/2. VTSS got it at 42, and it hit 57 yesterday; PMCS
at 87, and it closed at 127 – you get the picture, as fundamental analysis seems poor at best in Ï
markets. How can they be so incredibly late? Huge gains in JPM and MMM were 147 DJI points!!
Conclusion
For the first time in a while, both the DJI and NASDAQ moved in concert with one another – a good plus,
as long as it continues. This is what we outlined yesterday – namely how strong will the first rally be?
Conclusion is that it was great. This strongly suggests that the pullback (base-building process) will be
positive.
We are of the opinion that the decline in NASDAQ is over!! Straight up? Not likely, but trading improves
in a period of base building.
SENIOR VICE PRESIDENT
This document may not be reprinted without permission.
P.S. We will be on CNBC today at around 3:20 p.m. |
