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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Stephen M. DeMoss who wrote (12643)	5/22/2001 5:55:32 AM
From: DBrian	Read Replies (1) \| Respond to of 17183

Wit Soundview downgraded EMC to a hold. That might have something to do with it. DB

To: Stephen M. DeMoss who wrote (12643)	5/25/2001 4:50:05 PM
From: Jacob Snyder	Respond to of 17183

ST trading: I use that header, so everyone who isn't interested can skip this post. Since January, I abandoned LTB&H, as I thought we were in for an extended period of volatility in stocks, with no net upward movement. I've been trading tech stocks, sometimes long, sometimes short, with good success, since then. Just took a long position in EMC, at 37.2. 37 seems to be an important support/resistance line. 37 has been support since mid-April, and was also support for a couple of weeks around the end of February/beginning of March. In between those times, it was a resistance line for about 5 weeks. Today, we end right at that line. I'll take profits at 45, and stop-loss if it looks like we're going to close below 36. Short/medium term (weeks, to a few months), the trend in techs seems to be up. Bad news is being ignored, everyone is expecting business capital spending to pick up in the second half. Since it's impossible today to disprove this (it's a future event), and since everyone is ignoring the current bad business conditions, stocks have been going up. The Fed is putting a floor under stocks, and seems intent on continuing to do so. At some point, the Fed will quit lowering rates (and pumping in liquidity), inflation may go over 4%, business spending may not pick up in the second half, and then maybe the trend will become down. That's why I'm not taking any longterm positions now, I'm not convinced the last 6 weeks is anything other than a huge long bear rally, like we had in the middle part of 2000.