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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Steeny who wrote (21440)	6/11/1999 2:15:00 PM
From: ErnestPoe	Read Replies (1) \| Respond to of 41369

AOL is tanking. Looking to pick some up in the Low 80.00's. Thanks

To: Steeny who wrote (21440)	6/11/1999 3:39:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 41369

Steeny I reviewed the data on PPI data and there was one point that was a litttle bothersome. " The PPI report contained some worrisome signs, however. Crude goods prices rose 5.5 percent, the biggest gain in 2 1/2 years, on a 11.9 percent gain in energy prices. The core rate for crude goods rose 2.3 percent. Prices of many industrial materials rose. Scrap steel prices were up 8.4 percent. Scrap aluminum, copper ore and raw cotton prices rose. To one economist, the increase in raw materials was the big story in the PPI report. "Collapsing commodity prices will not save the day anymore and that is a message that the members of the FOMC understand," warned Joel Naroff, president of Naroff Economic Advisers. " At this point I tend to agree with you that because AOL has had multiple technical breaks we don't know the bottom. I decided this PM to make a lateral move at the $100 level and moved from AOL to GE ( I know, please don't laugh ). I may have to take a couple of Amphetamine pills to keep me awake with GE and prevent premature death from terminal boredom however it is just a short time move I hope. Next week will continue to be volatile and I think we need to wait and see how all this pans out . At the 200 DMA AOL will certainly be a fantastic buy, I am very truly yours (as Crystal Ball would say ) TA --------------- cbs.marketwatch.com Anxieties linger on indecisive data Wholesale inflation cools down, but demand picks up By Rex Nutting, CBS MarketWatch Last Update: 12:28 PM ET Jun 11, 1999 Bond Report WASHINGTON (CBS.MW) -- Data showing mild inflation at the wholesale level but steamy retail sales kept Wall Street on edge Friday, as concerns about higher interest rates loomed over the market again. The Labor Department said the Producer Price Index rose 0.2 percent in May after climbing 0.5 percent in April. Excluding the volatile food and energy sector, prices rose just 0.1 percent, the same as in April. The report shows inflation is still under control despite troubling signs that commodity prices have bottomed out. Meanwhile, the Commerce Department said retail sales rose 1 percent in May behind a 2.5 jump in autos. Excluding auto sales, retail sales rose 0.5 percent. The sales report shows consumer spending is still strong, a major concern for the Federal Reserve as it readies for its June 29-30 policy meeting. The Federal Open Market Committee warned last month that demand was rising too fast; the retail sales report confirmed the Fed's worries. On Wall Street, the data seemed unconvincing as investors reacted without any decisiveness, with most major stock indexes largely flat. "The market will remain tentative until the Fed meets and does their tightening, which the market has certainly priced in," said Arthur Hogan, chief market analyst at Jefferies & Co. Inc. See Market Snapshot. The inflation numbers came in exactly as forecast by a panel of private economists surveyed by CBS.MarketWatch.com. The economists were expecting a gain of 0.6 percent in retail sales. The bond market reacted calmly to the reports, since they didn't answer the underlying questions about how soon and by how much the Fed is likely to raise rates. The markets fully expect the Fed to raise rates by a quarter of a percentage point at the end of the month, but that might not be the last of the moves. See Bond Report. The PPI has risen 1.4 percent in the past 12 months, the largest year-over-year increase in more than two years. The core rate is up 1.7 percent in the past year. The PPI measures prices charged by producers at various levels of production. The headline number measures "finished" goods ready for final sale. The PPI had fallen for much of late 1997 and early 1998, but spiked higher in April as the impact of oil production cutbacks hit. The Labor Department will report on the Consumer Price Index next Wednesday. The CPI rose 0.7 percent in April (and the core rate rose 0.4 percent), igniting the current wave of inflation panic on Wall Street. Most producer prices were well-behaved in May. Foods prices rose 0.5 percent on big jumps in pork and fruit prices. Energy prices were flat after soaring 5.1 percent in April. Gasoline prices dropped 2.7 percent after rising a record 29.1 percent the month before. Prices of consumer goods other than food and energy were unchanged for the second straight month. Car prices rose 0.7 percent. Prescription drug prices dropped 2.7 percent. Capital equipment prices rose 0.2 percent. Computer prices fell 2.2 percent, helping to offset a 0.7 percent rise in heavy truck prices. The PPI report contained some worrisome signs, however. Crude goods prices rose 5.5 percent, the biggest gain in 2 1/2 years, on a 11.9 percent gain in energy prices. The core rate for crude goods rose 2.3 percent. Prices of many industrial materials rose. Scrap steel prices were up 8.4 percent. Scrap aluminum, copper ore and raw cotton prices rose. To one economist, the increase in raw materials was the big story in the PPI report. "Collapsing commodity prices will not save the day anymore and that is a message that the members of the FOMC understand," warned Joel Naroff, president of Naroff Economic Advisers. Despite the gains, crude goods prices are still down 4.4 percent from a year earlier. you said I have yet to meet anyone with the ability to pick bottoms correctly. I have heard so many on this thread tell us that 105 was the bottom. Picking bottoms is awesome if you are right, but this is extremely rare. IMHO, there is a very real possibility that AOL could head for it's 200dma at about 75. Most stocks, although it's not a hardfast rule, gravitate to their 200dma around once a year. Re: interest rates: we have banged heads enough on this before. I never said the Fed should raise, but that they will. I will post in detail later. I see it from their perspective, not mine.