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

To: HairBall who wrote (18979)	7/1/1999 8:13:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 99985

Reuters fixed their server so I also updated my stuff last night except for P&F charts but have done them also this morning. The index breakouts seem to be for real and good choice for your featured chart as GE looked strong today. I was however unimpressed with many of the tech stocks after they initially spiked up then pulled back as the big money seemed to want to take a pause and plug in their formulas last night to try and justify higher prices with higher ionterest rates. I have no doubt they will change their models to rationalize it somehow and they will eventually take off skyward again in the future. I think the indexes could be headed to levels that will make our heads spin since the air will be so thin up that high. I can't even see the top tine of my forks on the charts I post for the DOW and have to span the time frame back here at home to see it. The telephone stocks got hit hard today and I haven't had the time to find out why unless it is like the utilities where no one wants to settle for dividends now that they have a chance to lock in the higher bond rates before they drop back down. I did find it interesting that the lowest earnings type stocks were the largest gainers and the stocks with real earnings seemed to give back most of the initial post announcement gains. I am not going to fight the trend but I still hope Uncle Al looks at this action and pulls out an unscheduled surprise rate hike inthe future to slap these people awake. As I scanned across the threads late last night and this morning, all I see is exuberance about semi and semi equip makers talking about doubling in price despite no earnings and bleak futures. Personally I am trying to pick up my bargain stocks again but agree with Don that we are getting extreme short term over bought already. Of course coming out of long down turns like we just had can cause over bought readings to last a while at times so we'll see if it slows down soon and how much it pulls back if at all. Tried to play the announcement and inthe time it took the broker to pick up the phone, the DOW rocketed so fast, I just hung up. I have to admit that I was truely in awe with the speed of that climb. At the risk of sounding bearish in this time of obvious upward mobility. Just imagine if the DOW can climb 200 points ( went from down 50 to up 150) in only a few minutes because of a fed announcement, how fast it will drop on that day that is sure to come in the coming years as everyone wants out at once and there are no buyers. I will have nightmares for months just from considering it. Good Luck and have fun playing the bubble as it grows the next month or so, just remove all sharp objects before approaching it. <ggg> Lee