Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: eichler who wrote (76249)	4/30/2001 8:26:40 PM
From: American Spirit	Respond to of 99985

Sweet. After-hours nice for techs. Mused about buying MRVC today. Too bad I didn't. Profit-taking over for the week? We'll see. That's the way it was last week. All done on Monday.

To: eichler who wrote (76249)	4/30/2001 8:30:47 PM
From: t2	Respond to of 99985

Eichler, Thanks. That is interesting. I also agree that afterhours trading is very encouraging. Trying to determine the relevance of a positive afterhours market on a month end. Saw another article by Cramer (realmoney.com); he was talking about the high flying stocks were being marked up by certain technology funds. Of course he has no evidence (nobody really does) but put his view is out there. Maybe that could also explain why we had so much volatility in the afternoon on the Nasdaq. There is a chance that traders were trying to get ahead of any reversal from month end mark ups. That is the explanation he gave for the selloff in the JDSU, AMCC types of stocks in his late day article. What he did not know at that point was that the Nasdaq closed higher from the time of his article and those stocks recovered...to be one of the best sectors on the day. If in fact it was a big game of marking up stock, we should head down tomorrow. However, I don't believe it really was about mark ups. The comments that we got today (from a formerly bearish analyst) on the telco equipment stocks may be what was driving the rest of the sector; saying that they are close to bottom. Those remarks may be able to move stock like NT, CIENA, Cisco (or JNPR) but will have their most profound effect on the suppliers as JDSU, GLW, AMCC, PMCS, VTSS, and so on... When you factor in how heavily shorted many of these stocks are, any incrementally positive news or comments and....look out! Maybe we get the opposite effect of what happened to such stocks when Nortel issued its first warnings of this year. I believe many of these (amcc etc..) lost half of their value in a matter of days. That warning started a downward spiral that came to a halt recently. The reverse is also possible if the news starts getting better or at least does not get worse. (I usually stick to buying and selling QQQs when placing bets and have not really bought into the individual names but that may change if I get the opportunity) Tomorrow will be very interesting and my prediction is that it will be positive based upon the above factors as long as the economic numbers are OK---better than expected is actually prefered. It would be another small sign that the economy may not hit a recession after all (at least people will think we will avoid a recession. <g>). That has to be positive for techs. Looking forward to a very interesting day. Not as confident of a big rally like today but still very long the techs. BTW--I am more of a position trader and less of an investor or daytrader.