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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (28039)	8/9/1999 11:31:00 AM
From: Jeff Jordan	Read Replies (2) \| Respond to of 50167

The most important thing in this market is that huge market cap is trapped in very few core group of the S&P 500. Until that core breaks significant correction is not possible. I am working on my short term pattern and expect that a break of 508 on DOT will take the DOT to the first resistance of 525. On the test of 453 I think that 480 can be tested when and if 1282 will be tested however trading is about short term goals and today my objectives are to short below 1297 and cover at 1277 or on the way up to 1306. Ike, I agree...I've been watching....LU MSFT IBM INTC for weeks...even PFE this has added to my bearish stance...let alone..AOL CMGI EXDS INKT I am still not encouraged by today's sideways movement...I still expect a downward drift...uncertainty always wins out...I truly believe once the 25pt rate hike is behind us the market can search for good news and then we will move up strong...in all our cherished stocks....the great rebounds on 20% moves...when to commit is always the question? A lot of people will be watching CBS news tonight w/ their story on daytraders...we knew it was coming... Best, Jeff

To: IQBAL LATIF who wrote (28039)	8/9/1999 1:06:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

One guy who likes to short INTc and MU and semis would love to read this.. dedicated to 'His rear majesty'.... Shares of Micron Technology (MU) rose 4 « to 65 7/8 on volume of 6.6 million on reports that 64 Meg spot DRAM prices rose 16% last week to $7.20. After rebounding from $4 to $6 in late July, spot prices continued to move higher and analysts believe that spot prices could stay at these levels or move higher in coming months. Contract prices also rose, as Micron rose contract price to $5.00 and could move them up to $5.50 to $6.00. Reports suggest that Micron managed to lower inventories from 7 weeks to around 5 weeks. Also, other manufacturers indicated that they also managed to work their inventories down. Even though DRAM prices rebounded strongly, supply appears to be tight, which suggests that prices could go up even higher. This means that ASPs for Micron could be favorable if prices stay at these levels for few more weeks. There is a good chance that analysts may have to revise their earnings estimate up. In fact Salomon Smith Barney did just that by raising earnings estimate for Micron from $0.65 to $0.85 for fiscal 1999 and to $4.50 from $3.85 for fiscal 2000. They expect Micron's ASP to come in around $6.50, above previous estimate of $6.00. This prompted them to raise Micron's 12-month price target from $75 to $90. Salomon believes that Micron's earnings could go up even more, if DRAM prices rise further. In fact, 64 Meg DRAMs have more room to rise, as they were trading around $10 in February. While analysts are not predicting such a strong rebound, they feel that prices would remain generally firm, which might support higher stock price for Micron. PaineWebber believes that for every $1 increase in ASP for Micron, earnings could go up by $1. PaineWebber is also bullish on Micron. Recent rise in the stock was accompanied by good volume and money flow, which is coming from both retail and institutional side. trading-ideas.com Keep an eye on shares of eBay, which might come under selling pressure on Monday after the company's site was down for several hours on Friday. Back in June, eBay's site was down for a long period of time, which costs the company almost $4 million in revenues. eBay might have a similar situation this time. The problem is, sentiment is extremely negative on the stock and on top of this such negative news might not bode very well. Shares could move towards its precious low again. Keep an eye on shares of AOL, which rose slightly and stayed above its 200-day moving average. This area is very important, as the 200-day moving average has tremendous technical significance. Shares are extremely oversold after recent decline. The next day or two would determine if AOL can stay above its 200-day average. If overall market continues to head lower, this could make things difficult for AOL to stay above critical support.