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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (11122)	6/12/1999 4:40:00 PM
From: E. Davies	Respond to of 29970

I'm worried about interest rates. If they keep going up, the market is toast. The thing I find most interesting is that rates have risen nearly .75% from the low in April and nearly .4% in the last 3 weeks. All this the pundits tell us is because of a fear of a .25% increase from the FED. Something doesnt add up. I just don't know enough to know what it is. If I look at the chart for rates as if it were a stock, it looks to me like the stock is about to run into heavy resistance at 6. A stock will often overshoot a resistance point on the first try, then settle back down below it for a long struggle to determine which way next. This "stock" at 6.1 is far above its 50dma at 5.7 and its 200dma at 5.3. Looks to me like a 2-3 month consolidation around the 6 area. quote.yahoo.com^TYX&d=5ym If you look at the above 5 year chart you can see how the whole numbers (5,6,7,8%) are major support/resistance points. Shows how psychological it all is, based on human emotion. See-- I can spout off stuff that sounds informed without having the slightest idea what I am talking about! Eric

To: Elmer who wrote (11122)	6/12/1999 8:16:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 29970

No one knows what the Portland outcome will be. The way things are now is that if you want AOL over ATHM you will have to pay $10 to AOL and $40 to ATHM each month. ATHM is resisting this solution and would prefer to block. That won't last if competitors like HSAC are providing this pricing. One ruling might be that a subscriber pays $3 to AOL and $40 to ATHM to get AOL over ATHM. Another might be the previous formula. My guess is that neither of these will be the outcome. Recent developments in other technologies like what Frank has suggested in post #11117 may make all these considerations irrelevant. That might happen with wireless technologies too. Interest rates are always a concern. You just have to do the best you can when they're changing. So far it is only the T market which has rising rates. The FED has not confirmed that they agree with a need to increase the cost of interbank borrowing due to inflationary pressures that the T market. The T market will react way in advance since it is time paper the participants are buying. The oil price increase had a significant effect on cooling the demand for loanable funds, so maybe the T market is overreacting or maybe it's reflecting foreign factors. The stock market has fallen because there is concern about future inflation. It isn't a matter so much of selling, but rather one of a paucity of buying. maybe the negatives are well enough known so that buyers will come back at least for awhile.