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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (42046)	4/14/2000 11:37:00 AM
From: taxman	Respond to of 74651

bottom? they got the hoped for morning drop. regards > THE BULL MARKET TECHNICAL INVESTOR > April 14, 2000 > > Volume 1, #3 > "Off The Charts" > By Barry Habib and Art Adams. > > It feels like we are very close to a bottom. > The Put/Call ratios are > showing pessimism. That is a good sign for > Bulls and could be the start > of a reversal. The 200-day Moving Average (MA) > on the Nasdaq is currently > at 3,614. The index is still within the bottom > Bollinger band (definition > below). We'd love to see a drop in the > morning, hit the 200-Day MA or get > close to it, stay within the bottom Bollinger > band, then explode to the > upside. Although the low would not be as low > as we hit on an intra-day > basis on the 4th, we would be closer to the > 200-day MA than we were then. > Therefore, on a technical basis, we would have > confirmed the low of last > week. > > We also love the doom and gloom in the media. > Just like we were all > caught up in the euphoria of Nasdaq 5,000 when > we failed to see nothing > put positives. Now we are feeling so much pain > we see nothing but > negatives. It's easy for us to fail to see the > opportunities and bargains > that exist before our eyes. This is probably a > great sign that a > turnaround is very close. > > A lot will depend on tomorrow's CPI (Consumer > Price Index) report. The > forecast is for the CPI to be up 0.5% and the > CPI Core Rate (this excludes > the more volatile food and energy prices) to be > up 0.2%. Time for release > is 8:30 AM ET. > > We are including both "Long" and "Short" plays > in this edition, giving you > trading suggestions in both types of markets. > If the Nasdaq breaks below > its 200-day MA, it will get bloody. We think a > bounce off that level is > more likely, with a rally back towards the > 50-day MA at 4,400 to follow. > Remember, just 12 years ago the Nasdaq had its > greatest percentage loss of > all time, 11% in one day. That was just a 40 > point drop from 400 to 360. > If you had invested in the Nasdaq index on the > day BEFORE the largest drop > ever, you still would have seen your investment > soar to 13 times the > initial amount in the 12 years to follow. > Patience has been handsomely > rewarded in the past and history has a way of > repeating itself. > > Copyright The Bull Market Technical Investor,