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

To: SecularBull who wrote (77627)	5/30/2001 2:03:10 PM
From: James Strauss	Read Replies (1) \| Respond to of 99985

SB: Areas of strength today are building, hospital mgmt, medical, and aerospace... Jim

To: SecularBull who wrote (77627)	5/30/2001 2:37:37 PM
From: t2	Read Replies (4) \| Respond to of 99985

The traders or short sellers today are expecting a repeat of February and March. I don't think it happens because back then concentrated mutual funds like Janus were raising cash ahead of the anticipated big redemptions. It did not make sense to use up the cash until the redemptions related to taxes were over (coincidently end of March!). The big tech funds just kept selling and selling; basically for their survival---it was a race to get out before the next tech fund sold their JDSU or CSCO and pushed prices even lower. Now the environment is to put cash to work. IMHO, that is too significant of a difference this time around and that is why I have been buying all day..mostly tech. There is no need to liquidate tech positions that many funds would have only bought recently anyways. For mutual funds, these would be long term buys. Short interest in the Nasdaq is high levels and the individual fund holders are pulling out of the market. IMHO, these conditions are not sustainable..Something has got to give!<g> Given the bearish tone to the market today, I would be expecting a day that ends on a positive note.(Nasdaq down 86 now) Of course, I could be wrong...and have to put some stops on certain trades. (to me, the only big near term dark cloud is Oracle--and I believe it gets priced into the market even if not in its own stock)