here is a little thing I get daily from Steve Goldman
you might want to sign up for it
notice what he says about book-to-bill numbers that came out today
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Yamner & Co., Inc.
Members AMEX NASD SIPC
33-00 Broadway
Fair Lawn, NJ 07410 (800) 221-5676
yamner.com
info@yamner.com
"Serving the Financial Community for over 22 Years!"
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>From the Trading Desk
6/17/98 3:49 PM
A intense day, to say the least. Easing concerns about Asia and the Yen, President Clinton
talked stoked the markets to an incredible mid-day rally. Morning strength in the SPFutures
lead the Dow nearly 90 points higher within the first 15 minutes of trading. After Clinton's
speech about the world's economy and the US's support of foreign currencies and economies, the
DOW extended gains, up nearly 230 points (8892) at its peak. The NASDAQ was up more than 30 on
broad strength.
At one point, my screens were nearly green across the board with one or two exceptions, out of
a few hundred stocks. It was an incredible rally. Yet as the afternoon wore on, profit taking
and cautious selling crept in and brought the various indices down from their highs.
One weight on the market were analysts comments regarding HWP, a Dow component. Negative
remarks weighed on the stock, up nearly 2 at one point, dragging it down nearly 2 at its worst.
GTW, DELL, CPQ and IBM all much higher near the open, dropped with HWP and weighed on the
market.
As well, semiconductors, strong over the past few sessions, were lower on weak book-to-bill
numbers. Book-to-bill ratios measure the number of bookings in new orders relative to sales.
A high book to billindicates that future sales (bookings) are strong relative to sales. The
ratio was weaker than anticipated and lead most semiconductor and semiconductor capital
equipment makers lower.
Bank stocks were strong across the board with an improving currency market, not offset by a
weaker bondmarket. Large caps with international exposure used todays strength to recoup
recent losses.
Oil and oil service stocks jumped on OPEC news that 3 major countries would be cutting
production, which lead to a rally in crude prices and then the oil and service stocks.
The strongest sector today were the internet stocks, AMZN, YHOO, LCOS, YHOO, etc. This sector
simply knows no limits and continues to move higher. It will do so without our participation.
For trading purposes, with such volatility, there may be a few opportunities. As an
investment, while we greatly embrace the significance of the internet, we will not be investors
in such high fliers.
What started as a blanket of positive green slowly began to look a bit like Christmas. The red
came mainly from large cap technology stocks.
Sharp selling in certain stocks brought into question the sustainability of the past two days'
rally and whether this movement could contine. While we feel the momentum has turned
positive, real fundamental concerns exist regarding earnings potential and thus we continue to
sell these rallies, raising cash, rotating into oils and utilities as well as a few
opportunities mid and small cap companies.
We continue to maintain core holdings in large caps yet will reduce them on continued rallies.
Regards,
Steven Goldman, Esq.
Head Trader, Sales & Options Principal
Yamner & Co., Inc.
33-00 Broadway
Fair Lawn, New Jersey 07410
800.221.5676
yamner.com
steve@yamner.com |
