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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (31152)	7/17/2001 10:42:36 AM
From: Softechie	Respond to of 37746

Tom Galvin from CSFB says it's time to buy techs. This guy is the new bull on WS? He has said to load up techs when Nasdaq hit 3000. Oh man what a pain if you'd listened to him then. But now he might be partially right. Here are some his comments: · Despite worse than expected profit news over the past six weeks, big cap market indexes like the S&P 500 and Nasdaq have essentially moved sideways for three months with little inclination to test the April 4 lows. When the market can stabilize in the face of overtly bad news, its resilience speaks volumes with a rebound a more likely next step. · The NYSE advance/decline index has firmly broken above its 200-day moving average, which has only happened three times in the past 15 years. Each time, rising markets have subsequently transpired. The NYSE took a bear market turn two years before the Nasdaq and it is now resurfacing. Try not to allow the volatility and high valuations of the Nasdaq cloud the recovery underway in old economy NYSE shares. · Consistent with historical market rebounds following economic downturns, small- and mid-cap shares are leading the way. Because a great many cyclical shares are often small by nature given a limited duration of market appeal, their recovery should be viewed as a leading indicator of a turn for the economy. · A review of the more than 100 industry groups that comprise the S&P 500 reflect a market rotation toward cyclical areas and in general away from defensive groups. Industries with a recent healthy breakout above their 200-day moving average namely auto parts, steel, retail building supplies, retail electronics, life insurance and generic drugs. Groups moving out of favor include airlines, drug stores, household products, medical supplies, natural gas and energy exploration and production firms.