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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Rose who wrote (16223)	6/6/1999 10:54:00 PM
From: StockOperator	Respond to of 99985

Robert, You may be right. A 25 bps move may already be priced into the markets. And yes I think the markets after DIGESTING the initial shock from a rate hike, could ultimately be interpreted as a positive, pushing prices higher. The Fed's change in bias was proof enough that the market likes to move contrary to wide spread opinion. Especially when you consider that the consensus has to be that a rate hike would prove damaging to the bullish trend. In regards to the nutz as a group I have spent some time recently considering what a rally in the markets, especially if the major indexes are able to climb into record territory, how that might affect this group overall. I believe "the" question to ask is whether or not the majority of these stocks will see higher highs. Personally, I believe we are really in the beginning stages of a revolution. When you consider that the U.S., the undisputed leader of this information superhighway, has roughly 30 million homes on the net. And how growth will surely grow exponentially (around the globe) in the coming years, higher highs are of course a very real possibility. Looking at stocks like AMZN and YHOO I see prices that have already broken their long term trendlines. However, this is not uncommon for stocks across many different sector groups. This weakness of course places more pressure on these stocks to turn around and retake the trend established. Something I believe these two stocks will ATTEMPT to do as the markets move higher. But because I believe there will be many more losers in this group than winners, I'm not sure I would want to "buy and hold" all of these stocks as the market separates the winners from the losers. Personally, I really like the bandwidth issues. They have behaved much better during this recent market weakness. Regards, SO