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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (43805)5/22/1998 8:01:00 PM
From: jjs_ynot  Read Replies (2) of 58727
 
Don,

It appears that we have a race between slowing earnings and a slowing economy.

Housing starts have started to fall of as have commodity prices and new job creation.

However, earnings are growing at an anemic pace an pricing power is almost nonexistent. New home pricing power is declining.

At this point a tightrope walk is the order of the day IMO. The upside appears to be very limited. The downside is very murky. My market bets going forward are basically those which will win if the market doesn't move up (i.e. vertical-like spread strategies).

This market has breakout potential based on daily MACD charts but no catalyst to make it happen. We are on a very precarious balance.

My thoughts. Any rebuttals are welcome.

dave
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