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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: donald sew who wrote (38253)12/17/2000 10:49:14 AM
From: Gersh Avery  Read Replies (1) of 42787
 
Hi don

I wish your mother well also ..

SPX - BORDERLINE CLASS 1 BUY(intraday), OVERBOUGHT(closing basis)
OEX - BORDERLINE CLASS 1 BUY(intraday), OVERBOUGHT(closing basis)
NAZ - BORDERLINE CLASS 1 BUY(intraday), OVERBOUGHT(closing basis), SHOOTING STAR
NDX - BORDERLINE CLASS 1 BUY(intraday), OVERBOUGHT(closing basis), SHOOTING STAR


Did you mean oversold?

Short term bounce .. I figure over about 2:30 Tuesday. If the fed doesn't lower then there won't be much to move us up. If they do lower then the bounce could be strong and possibly last for a couple of more days.

The big item for the next couple of months is earnings.

Big tech companies have been using investment gains to boost quarterly bottom lines for a long time now. Mania has given these folks fuel to show very nice year over year earnings gains. These cross investments are now poised to have the reverse effect.

Example .. I believe that ~$.20 per year of MSFT earnings are from investment gains.

We are used to seeing lowered expectations that are met .. Now we could very well see lowered expectations that are missed.

All of the warnings that have been issued, so far, probably have not included the impact of falling stock prices on the "investment gains" section of the quarterly report. These would have been almost impossible to project through the end of the year as no one can say what stock prices will be on 12/31.
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