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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: oldirtybastard who wrote (30830)	9/23/2000 1:59:31 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 42787

Bert's got it right: Bert Dohmen's Weekly Hotline September 22, 2000 "ABBREVIATED VERSION" Substantial portions deleted in fairness to paying customers. The market turbulence this week was very exciting. The NASDAQ Composite plunged through support in the 3,800 area for one day and then quickly reversed the next day with a big upmove, closing well above 3,800. At the opening on Friday, Intel's earnings warning shook the markets. Intel on Friday traded over 308 million shares, the most of any stock in history for one day. It lost 13.53 in the process. Obviously there was big selling. However, also consider that there was huge buying. For every seller there must be a buyer. Many other tech leaders were initially drawn down with Intel. At the low point, the NASDAQ Composite had lost 214 points. But at the same time, many other stocks were up. The biotechnology sector was extremely strong today. I have a feeling that the Intel warning may be the end of the technology shakeout. From the action I saw in my own trading, there was plenty of support underneath most key stocks. The bearish news this week was the soaring oil prices, the plunging Euro currency to record lows, and implications that the U.S. economy might go into a recession, the Asian markets might have a crisis, and U.S. companies would have significant earnings declines. In our other services during the week, I predicted the following: a plunge in oil prices, a strong temporary rally in the Euro currency, thus an elimination of all of the fears currently in the market, and a resulting big upturn in the US stock market. After the close on Friday, it appears that those factors were in place. Friday morning Secretary of the Treasury Summers, and consultant to the Gore campaign, announced that for the first time in five years the U.S. would intervene in the currency markets, to support the Euro. As a result, the Euro had an impressive rally. After the close of the markets, President Clinton announced that the U.S. would release oil from the strategic oil reserves, and oil prices plunged. The bears will now complain that the support of the Euro currency and the release of oil are all political maneuvers to help Gore. But that doesn't matter. The only thing that matters to a trader is to know that a market turn has come and that he must get on board. At the close, the Dow Jones Industrials had a nice gain of 81 points for the day, and a loss of 79 points for the week. On Friday, the NASDAQ Composite erased much of its loss of 214 points of early morning, and closed with a loss of only 25 at 3803. All of that loss can be attributed to Intel.