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

To: American Spirit who wrote (76508)	5/4/2001 12:43:19 PM
From: t2	Read Replies (1) \| Respond to of 99985

Moved back into the market this morning. Bought computer stocks like AAP, NOVL, UIS and HWP, an oil stock and a more WCOM. Keeping LOR and Baby Bells. Sticking with the plan. We should get the .50 Fed cut and tax cuts now. Not expecting miracles here just a modest-nice bounce over the next 10 days. I am expecting more than a modest bounce leading up to the FED meeting but will still exercise caution to some degree. The market will start the speculation (or hoping) of a 75bp cut and that could get the market rallying ahead of the meeting also and probably sell on the news (of probably 50bps). Good idea. I have a preference for Nasdaq names now. I would also add that the wireless carrier group seems to be doing well today; interest rate cuts also benefit many of these. However, the best gains will probably be in the usual Nasdaq names, IMHO. Given the rebound, we should get a short covering rally by late afternoon as well. JNPR has been doing well but Ciena has not..and that may be a sign that the short covering may still be later in the day. If the market gains big today (50 to 80 point gain on the Nasdaq), it may be the confirmation of a new bull market. That is what will get hedge funds to position long and give the market a big push. For now, they are skeptical and for good reason. BTW--the baby bells offer downside protection if tech in general are heading up..but they are unlikely to gain significantly unless the interest rate angle is being played. Lately, that has not been a factor. good luck.