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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (12313)	2/22/2001 11:33:02 PM
From: Bill Fischofer	Read Replies (2) \| Respond to of 17183

Re: EMC Short term Today EMC bounced off its 200 week moving average of just below 35. This level, give or take a few percent, has proven supportive for other large-cap tech leaders so I think the downside risk is fairly low from here. The NASDAQ is pretty oversold and due for at least a short term bounce. On a technical note, the VIX hit an intraday high of almost 33 today and reversed to close back below 30, which suggests we may well have seen capitulation selling this morning. This evening's "big bad event" was SUNW's estimate cuts but listening to the conference call it didn't sound as bad as some may have feared and I expect the slowdown in the US economy in 1H01 is now fully priced into just about everything. The marked economic weakness being observed by most corporations makes a compelling case that the Fed still has a lot of work to do in cutting interest rates. A weak economy also makes a meaningful tax cut very likely by Summer. It's important to recognize that the market is a discounting mechanism which looks ahead. This means that the market will bottom and turn upwards while the economic news still looks terrible. This is why "buy low" is so hard to do, but we're now seeing some of the best buying opportunities for top-quality tech names in years. The key is patience and diversification. Don't bite off so much that you can't sleep with a position but I believe those buying top-quality merchandise at today's prices will be happy with those purchases 6-12 months from now.