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

To: GROUND ZERO™ who wrote (30567)	10/19/1999 8:29:00 AM
From: j.o.	Read Replies (1) \| Respond to of 99985

Hi all, just some notes from our Doc while waiting for the number... Markets @ a Glance October 19, 1999 With a void of market moving data releases, it was earnings announcements, dissipation of "flight to quality" and technical trading that dominated the scene for Stocks and Bonds yesterday. Some positive earnings announcements in non-tech companies helped narrow the Blue Chip/Tech spread in Monday's session, however today's action will more likely reside around the CPI report this A.M. It seems that the market has prepared itself for a strong number given the stream of data which has been released thus far. Market activity may therefore be a bumpy ride. Stocks Positive earnings for such companies as Citigroup, JP Morgan and Ford helped put a bid into the Dow and Broad market which resulted in a narrowing of the Non-Tech/Tech spread. The Dow wrestled with the psychological 10,000 level but the bears couldn't manage to keep the Blue Chips below this benchmark on the close. The NASDAQ posted a highly technical session as the index picked up selling momentum after breaking the 2700 level, (check yesterday's Market @ a Glance NASDAQ outlook). The Techs rallied hard from their lows into the close. No near term technical levels to make note of. NASDAQ resistance will be 2700. Yesterday's close was nearly enough to kick in a continued negative technical outlook but a settle below 2680 would have painted a clearer picture. Medium term technicals point to a lower Dow. Bottom line...pay attention to CPI and corresponding Bond reaction. Also more earnings reports. Bonds Flight to quality dissipated in the Fixed Income sector as underlying strong fundamentals led market direction to higher yields. No near-term levels to mention....6.25% is yield support while longer term technicals point to higher rates. Gold and Crude These commodities continue to build value between wide ranges (Gold..high 290's to 330, Crude 20 to 25$). Special Note: CPI is generally a less volatile series than PPI (e.g. reports are usually more in line with forecasts). What does that mean ?? The number should be less of a shock than PPI. See the markets...feel the markets...be the market with... THE MARKET DOCTOR indextrade.com