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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: adad69 who wrote (100512)	6/4/2000 9:43:00 PM
From: puborectalis	Read Replies (2) \| Respond to of 120523

As predicted over the past two weeks, the NASDAQ has reversed to the upside, and this momentum should, after some sell waves, take the NASDAQ up into the higher 4,000 level. Not every stock will fare well, however. Non-tech stocks will likely be forgotten in favor of the new tech gold rush. Toronto, ONT, June 2 /SHfn/ -- As a result of Friday's trading, the NASDAQ has recorded the highest ALR Oscillator readings ever. The readings are higher than those that occurred after significant declines in 1987 and 1998. This indicates that the buy/sell force is back well on the side of buyers. It should also be able to carry this momentum well into the high 4,000 level, if not to new highs. The key will be the kind of sell strength readings we are going to see over the next few cycles. Obviously, this surge has been driven to a large extent by recent inflation friendly economic numbers. But if buying is driven to a frenzy, such as earlier in the year, then the index could come down even harder if economic numbers are poor. For now, I am betting that the sell pressure will be muted, much like it was after the market roared ahead in 1998 after a 30%+ correction. Over the next week, I will be watching the intra-day patterns for a bit of breakdown. But if this up wave truly has the type of strength we have seen over the past few days, then pull backs are going to be small in both duration and % retracement. For the coming week, look for the market to slow and create some buying opportunities. Right now, my initial target on a down wave is 3,450-3,500. But we may not reach these levels. So any drop of 125+ points should be watched for an entry point. Beware The Rotation The DOW and the S&P had pretty good days today. But they have had a lot better, and their short term strength readings have been a lot better as well. One factor that helped sink the techs a few months ago was the rotation into non-tech sectors like industrials and financials. This situation may begin to unwind and, in fact, I would make the argument that it had been doing so for past few weeks. The ALR readings for the S&P500 and the DOW are no where near their all time highs, unlike the NASDAQ and the Russell 2000. Tech investors are manic again and perhaps the correction has allowed those who missed out last time to jump on board. The charts below point out the ordinary ALR readings for the DOW and S&P. But notice that the Russell has record values, too. Why buy lottery tickets when you can go to Vegas? All the markets reversed their short term swing cycle to the upside but I do not believe that all groups are going for the ride. If investors continue this ferocious rotation back into tech stocks, then they will be doing so at the expense of other non-tech sectors. They have to. It has been what has kept this great bull going for so long. This rotation, however, may create a significant head wind for the NASDAQ and Russell 2000. Time will tell. But until selling pressure convinces us that the NASDAQ is again heading south, this should be the buying opportunity of the year. Dave Poxon, formerly a proprietary stock trader is now president of an institutional research firm that provides proprietary technical research services to institutions with in excess of $100 million of assets under administration. He writes exclusively for StockHouse.ca and StockHouse.com. David's proprietary indicators were developed after years of using traditional technical indicators, which he found did not do a good job for him of predicting turning points. His indicators are designed to identify turning points sooner. Click here for a description of his proprietary indicators.

To: adad69 who wrote (100512)	6/5/2000 2:55:00 AM
From: vagabond	Respond to of 120523

More on the China/QCOM news... ======================== From "The Financial Times" China Unicom to scrap mobile plan By James Kynge in Beijing Published: June 4 2000 16:54GMT \| Last Updated: June 5 2000 03:54GMT China Unicom, the Chinese telecoms company hoping to list this month, has scrapped plans to build a CDMA network - marking a setback for Qualcomm, a US company, that holds most of the intellectual property rights in CDMA technology. The official China Daily newspaper quoted a senior Unicom official on Sunday as saying that the company had no intention of deploying the current generation of CDMA technology. It had planned to start rolling out a nationwide mobile network with a designed capacity of 50m lines this year, requiring an investment of more than Rmb100bn ($12bn). The senior Unicom official was quoted as holding out some hope that the company would roll out a third generation network based on CDMA 2000, a US technology developed by Qualcomm. But the official noted that CDMA 2000 would not be ready for commercial rollout before around 2003. Telecommications analysts said that Unicom's history of broken promises undermined the credibility of future statements of intent. The company this year wound down some 46 co-operative telecoms services ventures with foreign companies. Compensation given to the foreign partners in the majority of cases fell short of the amounts invested. Unicom's current 7m subscribers use the GSM standard, supplied by Nokia, Ericsson and a few local Chinese companies. Chinese state researchers are already working with European companies to familiarise themselves with third generation GSM technology, which is called WCDMA. In addition, both Unicom and China Telecom, the dominant state carrier, have given a verbal endorsement to China's own third generation standard, called TD-SCDMA. The big carriers have not made public statements on procurement plans for this home-grown standard, which is expected to be inter-operable with WCDMA and CDMA 2000. The decision to drop the CDMA rollout plans are unlikely to influence the popularity of Unicom's share offer directly. The flotation of 2.459bn shares is expected to raise US$4.1bn at the mid-point price of HK$13 (US$1.67) and rank as Asia's biggest offering this year. The company's duopolistic position in the world's fastest growing mobile market should ensure keen interest despite the company's chequered history, poor management and its opaque relationship with the ministry of information industry, China's telecoms regulator. Nevertheless, margins are set to drop in both fixed and mobile services, analysts said. China Telecom said last week that it would cut its high international call rates in the second half of this year, but not by the 50 per cent margin reported in the official Chinese media. As in many other countries, the cuts are being driven by competition. Unicom began offering a long distance service this year at a cheaper rate than China Telecom. Increasingly popular call back services and internet telephony services are also contributing to an increasingly competitive environment.