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

To: t2 who wrote (77595)	5/30/2001 10:52:19 AM
From: American Spirit	Respond to of 99985

I don't know why anyone is surprised SUNW is in a lousy earnings period. Like ORCL, CSCO, NT and others they are dependent on an internet boom which has stalled. Eventually however it will continue and make up for lost time. In the meantime these companies are trading stocks as I've said before off their bottom bases. SUNW between 14-20, CSCO between 15-22, NT between 13-19, etc. Whether they're at the bottom or top of those ranges depends on market mood, spin and investor sentiment on a particular day. Today is the shorts day to cover, the weak hands day to sell at or near the bottom and the bargain-hunter's day to load up cheaply. In recent history is any indication, do the opposite of what the market is doing in order to profit.

To: t2 who wrote (77595)	5/30/2001 2:52:05 PM
From: Dave	Respond to of 99985

...the case for continuing aggressive rate cuts will be there unless the Nasdaq gets to the 2500 to 3000 range... So the Fed's real job is not to manage the money supply but to target equity index prices? And they should disregard the ridiculously high P/E of the Nasdaq 100 (high even if you don't count those companies that are losing money)--a number that has been growing lately as profits sink while share prices rise--and should just recklessly drop interest rates until the Nasdaq index is where they want it? This despite that Greenspan said the market was irrationally exuberant when the Nasdaq was below 500? I hope the Fed is not as reckless with our nation's economy as you want it to be. Stagflation sucks. The Fed shouldn't actively work to bring it about. My guess is that traders/investors will use broad market weakness to shift into the strong tech companies like Microsoft. That would be a curious approach. So you think that people will sell their sinking stocks at their current depressed prices, and buy MSFT, whose price has maintained its level throughout the broad decline, thereby selling low and buying high? Wouldn't they be much wiser to sell their MSFT now, and buy gold and silver stocks, which are still within spitting distance of twenty-year lows? Dave