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


To: HighTech who wrote (35826)12/23/1999 1:14:00 AM
From: Lee Lichterman III  Read Replies (2) | Respond to of 99985
 
Dwight - I believe the Fed drained this summer for a few days or maybe even a week or two which is what helped start the drop as the heroin was not there and the DTs set in.

Hit tech - I have wondered this myself at times but the problem is related to a link put here by others and some thoughts I spelled out at length a long time ago. Basically as rates go up to slow the market, hitech gambling etc, it hurts the brick and mortar stocks more than the techs. It is a no win situation as recent IPO stocks and companies that pay in stock options can resist the rising interest rates longer than the old companies that have to borrow to expand, don't have as much pricing power and have to pay thier blue collar workers real wages in cash. ALso the Banks get hit by the higher rates and with out financials, markets dont get healthy.

History has shown time and time again that falling bonds, transports, utilities and financials don't rise to meet the irrational stocks, the irrational stocks eventually fall to join the ones in the gutter but of course this time is different. <ng>

What do you all think of the MSFT news??? Buy the AM dip or short and hold on for the ride down????

Durable goods should steer things. Futures rallied after the close so the bias is up with a minus 57 still being a buy and a negative 5.57 needed to sell.

Good Luck,

Lee



To: HighTech who wrote (35826)12/23/1999 5:43:00 AM
From: Haim R. Branisteanu  Respond to of 99985
 
Hitech the amount of money coming into the stock market still had a limit.

Chasing RHAT, QCOM or YHOO or other speculative stocks did not come only from money flowing into the market but also from selling other stocks.

If we will correct it will be even more wild than the ascend up and then the carnage will hit every stock some out of fear some out of need to service margin calls, as some will try to hold on.

BWDIK
Haim