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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (67661)	1/25/2001 8:35:00 PM
From: KymarFye	Read Replies (1) \| Respond to of 99985

All depends on how you want to look at things: If you want to get long-term about it, Nasdaq is right about now near the top of the same trading channel it's been in since 1990, after a brief touch of the lower line just recently, and with the sojourn into the heights last March only briefly going beyond the upper line of the even longer-term bull trend from 1975. Am not saying there isn't a long way down if things turn sour, but there's nothing unusual in the mere numbers. It's called compounding, and they have no upper limit. Try switching to semi-log charts if the proportions seem too impressive.

To: GREENLAW4-7 who wrote (67661)	1/25/2001 9:24:01 PM
From: David Howe	Read Replies (1) \| Respond to of 99985

<< NASD was at 700 in 95, does anyone think we are over valued here??? >> Not necessarily. That's only a 300% increase in the Nasdaq during that time frame. I believe that if you check, the EPS and Revenue of the key Nasdaq companies is up about 300% as well. There has been some PE expansion in the Nasdaq, but that can be accounted for in the large number of companies that are on the verg of significant positive earnings, or have negative earnings. If you want to short something here, look for an ultra high PE stock, or one that trades on future earnings that are suspect. Don't just look at the size of the increase in the Nasdaq as a sign that it is overvalued. The earnings have increased as well. Dave