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

To: Robert Rose who wrote (16405)	6/8/1999 10:14:00 AM
From: Jerry Olson	Respond to of 99985

LOL...... hahahaha... oh well....the nets are rockin...it's where the action is!!! everyday!!

To: Robert Rose who wrote (16405)	6/8/1999 12:07:00 PM
From: HairBall	Read Replies (5) \| Respond to of 99985

Robert Rose: Well, I wish you well with all your investments....just be careful! I have never been one to average down. I might sell and buy back in at a lower price, but I never average down. However, I have been know to average up…buy more of a rising stock. But I treat each purchase as an individual trade, it must pass the requirements. I must say, that the charts are shaping up to suggest the correction may be close to ending. Many of the short-term bearish formations have resolved or been negated. Bullish formations are now rising to the forefront. I really expected much more of a correction, as it would have been healthier for the Market in my opinion. We may be witnessing the beginning of the reverse rotation I mentioned a week or two ago. This will be identified by declines in the Dow Indices while the DOT, COMPX buoy or even rise. I suspect this pullback may be shallow and am now beginning to also suspect that the overall market as measured by my NYA-COMPX may “not” drop back into the 25-year rising trading channel at this time. In my opinion, the Market needs to at least fall back into the 25 year rising trading channel of my NYA-COMPX Composite Index to get healthier. Anything less implies a dynamic extention of the exuberance and portends the stronger possibility of a coming nasty decline, less orderly than I originally expected. Those bullish formations (triangles/rising wedges) can be seen on my charts on the MDA Web Site. Major resistance lines and price points are in play today and this week. Others post regularly suggesting that today, tomorrow or next week will “tell the tell', I rarely make such statements, however later this week or early next week should confirm the medium-term direction. This Market is “not” going to be ruled by FED action or inaction, but by the perception of the influence of that action or inaction on equities. And, that perception will be shaped by the "big boyz" via equity price action and "talking heads" spin. The secret is to detect posturing by the "big boyz" and determine intent in advance. Not an easy task, as of late... Bullish formations coming to the forefront strongly suggest the Market goes up from here, after a pullback. However, I will still remain cautious, until the bullish formations are resolved to the upside. Always remember, on occasion medium and or major trend changes do negate trending formations. Close attention to the controlling trend lines of these formations is in order... Regards, LG Disclaimer: My posts are my opinions only and I reserve the right to be wrong on occasion. Do not base any investment decision solely on anyone's views or analysis. Do your own research and take responsibility for your own investment decisions.

To: Robert Rose who wrote (16405)	6/8/1999 1:21:00 PM
From: Susan G	Respond to of 99985

June 08, 1999 12:31 Rising rates a boon to 'Net stocks - BancBoston By James Saft LONDON, June 8 (Reuters) - U.S. Internet stocks face little danger from rising interest rates, and some cash-rich companies will actually benefit, a prominent analyst said on Tuesday. "The weirdest thing is that given how much cash each of these companies have, the best thing for them is rising interest rates because it will inflate my earnings estimates," Keith Benjamin, BancBoston Robertson Stephens analyst told Reuters in an interview. "I think that we are going to have a five percentage point (interest rate) move to get anybody to switch allocations," said Benjamin, in London to speak to investors. Traditionally, higher interest rates are seen as bad for high growth sectors such as the Internet because they reduce the current value to investors of future streams of earnings. The American Stock Exchange Internet index has fallen some 18 percent since April 27, during which time yields on 30-year Treasuries rose 0.40 percentage points to 5.97 percent. The fall in some stocks has been far steeper, with Amazon.Com falling 42 percent to 120. Benjamin said many Internet companies are highly cash generative and will see higher interest income as bond yields rise. "American Online now has $2 billion in cash. Network Solutions Inc. have $200 million in cash and generates cash on a $30 million a quarter run rate," said Benjamin, one of the most visible Internet analysts. He took issue with the assumption that a slowing economy might disproportionately slow Internet revenues. Internet companies "are targeting the consumer with something that is more convenient and cheaper so in a tougher economy it is more likely that you will buy something on the web."