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KANGAS: Are you predicting that it's going to be correct this year, too?
LEIBOVIT: Well, I have a feeling there's a chance it could be.
KANGAS: Well, I've seen a, I've had a look at your first quarter forecaster. Let's have a look at that on the
graphic.
LEIBOVIT: OK. OK.
KANGAS: And we can see it's very bullish looking.
LEIBOVIT: Well, now right now we are experiencing a correction and when volume changes to the upside
and breadth improves, then this model kicks in. Until that time this is a theoretical projection. I have a feeling
it still could be right and we could have a heck of a run into April. After that point though, the model says we
can come off sharply.
KANGAS: That looks like 10,000 Dow, the way you've got this one.
LEIBOVIT: It might be. But again, let's wait for volume to come. This correction we're experiencing now
could be over in a day or two but we'll know it. Volume reversal to the upside, positive breadth and we jump
in.
KANGAS: OK. Now we are seeing a selloff, especially in the high-tech stocks. Can this affect the whole
market?
LEIBOVIT: No question. Technology has led the whole mood for a couple three years now. If this doesn't
clean up and if we continue to see poor breadth and technology weak, IBM continues to look bad just as one
stock and we've been short for the last couple days, that's a bad sign.
KANGAS: Well, not only, we've got the combination of a selloff in the high- tech stocks and a lot of buying
going on in natural resource stocks. The metals and oils are doing well. What does that mean?
LEIBOVIT: Well, it's a little early to get bullish on the oils. The oil service stocks are looking a little bit better.
The golds are looking good. We are long some gold shares here. I have a long- standing projection old XAU
Index, the gold and silver index, up to the high '90s and I think we're in the high 60's now.
KANGAS: So despite your bullish prediction for the first quarter as we just saw on the chart, after that you're
looking for more damage?
LEIBOVIT: Well, the model is still being constructed but it looks like a zig- zag very choppy year and you're
going to get a series of panics, I think, during the year. Maybe it's Y2K- related.
KANGAS: All right. Now the last time you were with us, August 14 of '98 you gave us some great stocks.
Power Integration at 11. It's now 30. Acorn, 5 1/2 and still about the same. Fore Systems (NASDAQ:FORE)
is down, 24, down to 16 now. That was the only real clinker you had. Rambus (NASDAQ:RMBS) at 61; it's
now 75. You gave us Intel (NASDAQ:INTC) at 86. It's 127. Global Telesys at 48. It's 60. And what is it, Net
Bank (NASDAQ:NTBK) at 22. It's now 50. Are you out of all these or are you still with them?
LEIBOVIT: Out of them but I like the Internet banking stocks and on a pullback, I'm still looking at Net
Bank. and another Internet banking stock called TeleBanc (NASDAQ:TBFC). There is still a lot of growth in
that area.
KANGAS: OK, we've got another 35, 40 seconds for some suggestions as to what to buy despite the selloff
going on.
LEIBOVIT: OK. Buy the golds. Newmont (NYSE:NEM), American Barrack , Placer Dome (NYSE:PDG), if
nothing else as a hedge because there's some buying coming into them. I like gold stock Emisphere on the
NASDAQ. It's around 17. I think it's going into the mid '20s.
KANGAS: Symbol.
LEIBOVIT: EMIS.
KANGAS: OK.
LEIBOVIT: Qualcomm (NASDAQ:QCOM). I think that's going up 10 or 20 points. Great stock. It was up
today in fact. TWA (AMEX:TWA). It's around $6 under accumulation.
KANGAS: It was up today, 7/8 I believe... |
