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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (9641)	10/24/2000 8:45:16 PM
From: Mannie	Read Replies (1) \| Respond to of 65232

from Option Investor newsletter.. The best analysis of the day goes to Robert Dickey, chief technical strategist at Dain Rauscher Wessels. "The market can move higher without the benefit of past leaders as long as some other area takes over the leadership role. The tech stars of a year ago have been replaced by the healthcare sector as the most bullish and the Biotechs leading the higher growth area of that sector. Also bullish are the energy stocks. Tech stocks are bouncing to some degree, but the sector cannot be called bullish until it has gone through a likely longer bottoming period. Put it all together and you have the makings for a market rally through year-end, although the colors on your screen will be different than the last time." The thought process here is correct. Obviously Nortel will lead the tech stocks back down tomorrow, (helping to convince investors that the bottom is in place and has been tested) but I expect it to be a short trip. It is still likely that the bias is to the upside for the rest of the year. The key which traders will be looking for tomorrow is how the markets react to Nortel and ahead of the Thursday Employment Cost Index. That report has long been a favorite of the Fed Chief's and the number will be closely watched. Expectations are for a 1.0% rise. Also, GDP is due out on Friday and will also be closely watched. The expectations there are for a 3.4% rise. Some positive economic news could put the market back on the right track. The interesting fact of late October trading is that positive news is typically followed by a decent rally. That is because the market has already been beaten to extreme levels. If Nasdaq is quick to rally, it is a good sign and one we would want to see for the end of this week.