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

To: sandeep who wrote (2220)	3/7/2001 5:30:54 PM
From: Davy Crockett	Read Replies (1) \| Respond to of 52237

Whad ya talk'in 'bout? Stock Operator IMHO, has been right on the money. Where have U been???? edit: What gives? Maybe the economy????????? Regards, Peter

To: sandeep who wrote (2220)	3/7/2001 8:21:13 PM
From: StockOperator	Respond to of 52237

sandeep, You're right I have been saying for months that prices were heading down and that's exactly where they've gone. Just go to any charting site on the net and start popping in tech symbols. Do it on a monthly time frame to point out the obvious fact that you are going to see lower highs and lower lows almost across the board. The same thing applies to INTC, despite the latest st rally the stock has clearly begun to break down. Let me quickly go over what my position has been. The month of March is very important for a couple of reasons. First of all it is the final month of the 1st quarter. I have been saying for some time that we should not worry about stock prices running away. The charts for so many tech stocks are telling me a sustained rally before April is highly unlikely. So far this has proved accurate. The inability of prices to mount any kind of serious advance leaves stocks with two other alternatives: 1)Maintain support without breaking into new lows; 2) Breakdown even further into what I have been classifying as capitulation levels. Now the only way I know how to monitor which one of these is playing out in the market is to follow as many stocks as possible. Sure INTC and MSFT have not done so as of yet, but look at BRCM or YHOO today. These stocks are clearly in category number two. Plus I can tell you that the last two days have "set prices up" for stocks to begin to roll over. The quarter is what it's all about. Today is only the 7th there's a whole lot of month left. I have not changed my position. If prices can't hold this support you are going to see much lower prices in CSCO, SUNW, ADCT, NTAP, YHOO.....tech across the board. On the other hand if prices manage to hold and things look bullish in three weeks I'll be the first one to say so. Regards, SO p.s. There is of course another alternative that could play out here. Stocks could breakdown hard and not hit a V bottom which could imply that we may be heading into a much longer bottoming process. A period where prices could grind sideways at lower levels for months. That would also allow plenty of time for companies like MSFT and whoever to play catchup. Obviously nothing is cut in stone. But what is on WS. These are nothing more than possibilities.