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To: Frank Ellis Morris who wrote (26879)	4/19/2001 7:22:16 AM
From: William Hunt	Read Replies (2) \| Respond to of 27012

Thread --from briefing.com--- To quote Howard Cosell, "It's over. It's all over." Greenspan KOd a tiring bear market when he surprised many traders with a 50 basis point intermeeting rate cut... The move sent an already bullish market soaring higher... Nasdaq closed up 156 points, or 8%. Skeptics may point to slippage at the close, uninspiring breadth numbers, failure of sector to sustain gains after last surprise rate cut resulted in similarly bullish session, and/or fact that Nasdaq couldn't hold above its 50-day moving average, as signs that Wednesday's move was just another head fake in what remains a bear market. Rubbish! A little profit-taking ahead of IBM's report was to be expected; breadth always lags at turning points; Fed has cut rates by another 150 basis points since 1/3, and we're much closer to the point of an earnings turnaround - so the likelihood of the sector/market collapsing like it did in Feb-Mar is very remote; and given how far the Nasdaq had rallied over past couple of weeks (+28%), it comes as no surprise that resistance in the area of the 50-day moving average and the 38% retracement level held on first try. Stocks are behaving very positively despite soft Q1 earnings... We've said it before, we'll say it again - one clear sign of a bottom is when stocks rally on bad news. Several companies have begun to suggest that demand is improving, suggesting that earnings will trough in Q2, Q3 at the latest... Stocks always rally in anticipation of improved fundamentals... Waiting for earnings to actually turn positive means missing out on at least 60% of the move. Fed (finally) bringing real rates down... Low real rates needed to stimulate sagging business investment... Just one more reason it doesn't pay - over the intermediate- to long-term - to fight the Fed. Institutional investor are very uncomfortable sitting on all that cash while the markets move sharply higher... As we saw yesterday (with the big jump in volume) money will begin to flow freely back into stocks for fear of missing out on the next bull move. Will we go straight higher from here? No. But as we predicted when the week began, the market has transitioned from a sell the rallies to buy the dips mentality... So be ready to buy some more when the market pauses to catch its breath - it won't wait long before resuming its advance. IBM, AAPL, SEBL, NEWP, AMD and EXTR all up in response to after close earnings news... Please see our Short Stories and/or Earnings Calendar for comprehensive earnings coverage. BEST WISHES BILL

To: Frank Ellis Morris who wrote (26879)	4/19/2001 2:19:01 PM
From: Sonny McWilliams	Respond to of 27012

Frank. IBM and AOL DID come in great yesterday. AOL had a good report in the morning and then the interest rate cut put the icing on the cake. Lots of cos. came in surprisingly well after hours last night. The big stand out, of course, was IBM and Apple was no slouch either. The NAS has been up all day but the DOW is laboring a bit. But after the FED VICE Chairman's speech (read my post to Bill and thread) maybe things will keep on going. There was an interesting item on the tube. The CEO of MSTR is calling for his shareholders to take all their shares out of street name so the shorts cannot borrow the cos. stock. Again: Pretty interesting. It worked for this stock this morning. It's up over 50 percent. I guess the shorts are covering just in case stockholders follow the cos. advice. Maybe some of our cos. should do the same thing. It seems to work better when this advice comes directly from the officers of the cos. I have always said that shorting should not be allowed. It would stop some of this volatility. I am pretty sure that some of the cos. actually want their stock to go down some. That gives them a chance to buy options for their employees on the cheap. Maybe we should be doing this on our own when we see a big short position in our stocks. If everyone would do this, it would teach those shorts a lesson. I hate it when they make money at my expense. Let them sell their own stocks, not mine. WOW. LOOKS LIKE THAT FED VICE CHAIRMAN'S STATEMENT PUT SOME FIRE UNDER THE DOW AND THE NAS IS EVEN HIGHER. Sonny