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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (26017)	5/15/2000 6:49:00 AM
From: William Hunt	Read Replies (2) \| Respond to of 27012

Thread ---from briefing,com--- The day traders have been eyeing for weeks finally arrives on Tuesday... Greenspan & Co. are expected to announce a rate hike following Tuesday's FOMC meeting... The debate prior to this week's meeting has not been over whether the Fed will or won't raise rates, but by how much they'll hike the funds rate - 25 or 50 basis points... Market participants also debating over whether such a hike will be the last, or just another in a seemingly endless string of tightenings... For what it's worth, Briefing.com contends that the Fed will abandon its gradualist approach and hike the funds rate by 50 bp... From there it will be up to the data, though it is this analysts' opinion that the May rate hike will be the last in this cycle. Though it rarely pays to fight the Fed, we would not be at all surprised to see stocks stage a relief rally once the news is out - especially if the Fed ups the funds rate by 50 basis points and traders conclude that they are done for awhile... In fact, stocks have risen following most of the recent rate hikes on a sell the rumor buy the fact reaction. However, tech investors shouldn't get too excited over the sector's prospects regardless of what the Fed does... Leadership issues continue to exhibit ugly trading characteristics, suggesting that what ails the tech sector won't be cured by Tuesday's announcement... Deteriorating trends in stocks like Oracle (ORCL 74 13/16), Applied Materials (AMAT 84 7/16), IBM (IBM 104 7/16), Motorola (MOT 95 11/16), Microsoft (MSFT 68 13/16), Cisco (CSCO 59 15/16), America Online (AOL 55 3/8), Lucent (LU 56 5/8), etc. point to at least one more sizable drop before the sector will become oversold and cheap enough to attract the institutional investors that have shown little buying interest for the past couple of months... And as we have said repeatedly over that time from, until the big boys come back rally attempts will prove limited and short-lived. BEST WISHES BILL