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

To: David Howe who wrote (76532)	5/4/2001 8:23:04 PM
From: t2	Respond to of 99985

Today was an incredible test for this market and it passed with flying colors. Such a bad employment report; the headlines painted a very worrisome picture. The funds were just waiting for the pullback to put more money to work. With the kind of inflows we are starting to see combined with the fact there are not many IPOs, it sets the stage for a very sustainable upswing. I am pretty confident that the mutual funds would not have used up all their cash buying power during 2 weeks in April....they are buying in slowly and on any pullback, they get aggressive. You throw in the idea that many bears are skeptical and many charts indicate resistance levels (or predict downturn); therefore a case can be made NOW for several hundred point gains in the coming weeks. As of this morning I had thought that we could have been heading down; now it seems that the market is much stronger than people had realized. Any selloff off of Cisco earnings will be seized as another opportunity to buy. The hedge funds will go long on tech as well---covering and going long...sets in motion more explosiveness. Have a good weekend; I am feeling more confident of next week.