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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: anyer who wrote (89335)	3/21/2000 9:22:00 AM
From: Jerry Olson	Read Replies (1) \| Respond to of 120523

anyer fwiw..on DWA all OIL-Heating Oil-Gasoline etc gave double bottom sell signals..OIL's going lower...

To: anyer who wrote (89335)	3/21/2000 9:53:00 AM
From: Lane Hall-Witt	Respond to of 120523

I agree with you that energy could be a good opportunity; my point was really just to note the trading opportunity on the transports that stemmed from optimism about reduced energy costs, optimism that could well prove to be temporary. For oil, I'm watching two factors: OPEC and earnings. I tend to agree with you (and Lee Kramer) that OPEC will keep production relatively tight, giving the commodity support. Earnings will be especially important, because analysts have been saying for months that their projections are rooted in $18-22 oil. With the price of oil well above those levels, the producers had better crush estimates. If they don't, I find it hard to see what catalyst will move these stocks up another level. (Sentiment based on the commodity price arenot likely to improve on what we saw during the run from $10 into the $30s.) If they do, some of these stocks will look quite undervalued. What's your time frame on natural gas? Output was indeed down, but demand was light this winter. Natural gas would seem to be a tough play short term, heading into the spring and summer months. But it could be a good time to position oneself for an intermediate- to long-term play on the next cold season. Good luck!