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

To: Les H who wrote (72174)	3/14/2001 5:10:22 PM
From: Wayners	Read Replies (3) \| Respond to of 99985

That article is useless because while it has the big headline NASDAQ at 100 P/E to catch eyes, it never says how the number is calculated. Do they take all the earnings for all companies whether positive or negative and add them together to get the E? Do they only include the companies with positive E's? Do they count the ones with negative earnings as zero and those with positive as what they are? You can make the P/E on an index look like almost anything you want. If all companies with zero, non negative earnings have P/E's that explode with out limit are thus so overvalued, how come stocks don't all trade at zero until they actually have earnings? Do you think they added up all the book values of all the companies and subtracted those out of the P values? Do you think they considered the PEG or PSG of the Nasdaq? Do you think they could have run a Price to Sales number for the whole Nasdaq for comparison? Or how about Discounted Cash flow? Do stocks with negative P/E's trade below zero?

To: Les H who wrote (72174)	3/15/2001 11:16:45 AM
From: Crystal ball	Respond to of 99985

I agree WE ARE IN RALLY MODE <Bullish analysts believe that the NASDAQ may be able to rally <up until the Federal Reserve meeting on March 20. <An interest rate cut and a tax cut should provide a <floor under the market and provide a solid foundation for a second half earnings recovery. < my.zacks.com > Kudlow and even Reich agree Fed rates will be coming down big, that they should have been cut before last March, and that they are at least 150 basis too high. I agree with that, and have said so since the first unwarranted rate hike 18 months ago,.but no one listened to the alarm bells then, now they are not hearing the recovery dinner bell either. Feast or Famine. I am buying for later Feasting now, good to hear from you Les, say hello to your brothers for us. I am, Truly your$, -Crystal Ball