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

To: 10K a day who wrote (75475)	4/19/2001 12:32:27 PM
From: t2	Respond to of 99985

Looks like the movement up is still intact. I bet many were testing the open and later on. Bottom line is there is too much demand for shares and those that staying playing the sell or short the rallies games are getting more frusterated. That explains why Juniper and Ciena types are heading to yesterday's highs. Sensing that today is the day that major short covering is beginning. I believe we had only those that are mostly very short term traders that covering there positions recently. The position traders or "investor type" of shorts may be getting ready to capitulate..and that is probably where the action is now. If the Nasdaq closes over 100 points, we will be our way---there is a chance it could hit the gains we got yesterday again today. Not as convinced as I was on my earlier calls (about very short term moves)but still think it is a good possibility to get gains over 100 points today. My reason is simply that short covering on Nasdaq beaten up stocks is now underway and we even have companies telling people that their shares are being lent to short (MSTR) and to do something about it. All we have to do is look at the short interest in some internet stocks to also get an idea of how much they have been compressed (even if the fundamentals are bad). In addition, the pain of holding the SEBL, CIEN, JNPR, NTAP, JDSU, AMCC etc and etc (lots of really beaten up companies).....pain is going to get too much and we should see the bigger cap Nasdaq (MSFT etc..)also covered as a result of the pain in those smaller names I listed. Lets see if it unfolds like this. Not sure this all comes together today, tomorrow or next week. However, the speed with which the market has been adjusting is incredible and that is why it is possible it happens sooner rather than later. good luck all.