Matt,
>>I think gap up tomorrow is likely with this strong close, however, not sure if it will stick. I'm thinking of selling on the gap up as Wayne suggested earlier this week, but am not sure he was considering affects of rate reduction and if this changes his plan.<<
What complicates things more is that tomorrow is expiration
friday.
I think we'll just have to watch the market closely tomorrow and
see what it's doing. A first big clue will be the international
markets. I just looked at BRAZIL and MEXICO. They both had
big jumps up. Matt, this interest rate business is incredibly
important to the rest of the world. So many countries are
stuck in a terrible quagmire. They may start to have the
chance to get out of it. In short, this will be a HUGE
boost to our tech companies.
Now the psychology of the market may change DRASTICALLY!
We now know:
1) probably another rate cut coming by end of year, and
another one in Q1 '99.
2) G-Span is on OUR SIDE now. Remember how the market tanked
big time after his measly 1/4 pt ease? That's because all
the world markets basically gave up on trying to get any
help from G-Span.
Remember, when we went back down to 25 last time, the big
turning pt was immediately after the 1/4 pt ease. If we
had had a 1/2 pt ease, we would have been floating around
32 at least.
So, as far as gap up, who knows if we close the gap...
This isn't a normal situation... Will investors take
profits tomorrow knowing pts 1 & 2 above? I won't because
I know that pts 1 & 2 open up the doors for serious upside
potential and I won't have to worry about those pesky
shorts for awhile:-)
joe |
