Hi Sonny: More excerpts from last weekends Email update - I have some other recent writings on the 10,000 question I will try and post later today.
IBM is one Dow component that interests me a great deal. If we are on our way to 10,000 it would be hard to imagine getting there without the main engines of GE, GM and IBM at full throttle on afterburners, therefore IBM needs to be pounced on. If IBM's earnings turn out to be something of an upside surprise, I believe this stock will soar like it has not soared in a long while. I am talking 30 - 35 dollars or more. The current structure in some respects resembles Dell Computer before it exploded higher, (following its last consolidation), the Dow's consolidation before it took off from 8000 and the closest recent resemblance would be to Citicorp prior to liftoff last week.
Of course, a negative surprise would negate this, but the current structure fits the bullish case and throughout this bull market, when it has looked like a duck it has inevitably turned out to be a duck. So be prepared to move swiftly. It may even be fortuitous to buy Monday morning. We are on a long term Sentinel Buy since 99.
Data Broadcasting kicked back in with a Sentinel Buy at 5 3/8 and proceeded to explode higher. Data Broadcasting Corp (DBCC) roared to life earlier this month after being in suspended animation for the first 10 weeks of the year. On our first buy from 4 5/8 the market took us out at 6 1/8 on a Sentinel Sell, before pulling back again to the 5 dollar level. Quite frankly this stock is beginning to look like one of the most bullish stocks on the entire board. It is close to breaking a major downtrend and looks structurally dynamic enough to run to new all time highs well above $15. This could be a hot Internet play. Its joint venture with CBS-Marketwatch is beginning to be recognized for its excellence. If CBS sportsline is worth $600 million, DBCC can add similar a premium. At price 6 3/8 we have nice profit. Put the stop at 5 3/8.
The strength Pyramid was inverted during the latter part of the week in favor of the Nasdaq and broader markets. If this continues into this week, it should bode very well for the market.
Monday Morning's update:
To: Malcolm Lindsey (1046 )
From: TechnoWiz Monday, Apr 20 1998 11:34AM ET
Reply # of 1070
Morning Mal and everyone: Told you I thought this market and FNTN too had a real bullish feel to it all.
Can't argue with Nasdaq soaring led by solid leaders MSFT, CSCO, INTC and DELL and backed up by the New Vanguard Internet favorites that have become our new 2nd tier Nasdaq leaders along with a slew of coat-tail riders.
Re: My comments on IBM, they ain't waiting for the news to take this one higher, somebody knows something. HWP doesn't want to get left behind either. If IBM manages to really surprise us the reaction could be awesome.
So far so good
I will have more to post on DBCC later
Rgds
Wiz |
