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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (2983)	7/23/2001 11:45:50 AM
From: Venkie	Respond to of 13815

dunno where it's going..sebl..i think over the next 1-3 yrs...at least a double...no more doubles in 3 days..stock picking time as an investment...30-40 % a yr would be wonderful.

To: horsegirl48 who wrote (2983)	7/23/2001 11:59:28 AM
From: Venkie	Read Replies (1) \| Respond to of 13815

Although the markets closed the week on a down note, the session turned out to be much better for bulls than pre-market activity indicated it might. The day started off in an unfriendly fashion when most stocks gapped considerably lower at the open, but then managed to rebound and cross the finish line, well off the worst levels of the day. The unwillingness to go down easy reveals an encouragingly stubborn bullish streak as traders continue to sort through an enormous number of earnings reports to find the gold nuggets. It's no surprise to anyone that the outcome has been mixed, both in terms of results and future outlook. As the street struggles to digest an overload of financial information, the price action for most stocks remains within a relatively narrow range. This up and down movement is undoubtedly frustrating to long term investors who have become accustomed to only occasional rest stops while traveling along the Bull Market Interstate otherwise known as Wall Street. On the other hand, short-term traders love the somewhat predictable stop and go movement between support and resistance. As some of the most successful traders know very well, this type of "swing" can hold plenty of steady profit potential. There are several factors driving the market's yo-yo behavior, but the uncertainty from hazy earnings visibility has raised the anxiety level on par with driving in a thick fog. This increased angst has resulted in a higher number of knee-jerk buy-sell reactions than usually accompany the quarterly earnings carnival. For example, investors were almost panic stricken one day this past week by negative comments from one chip equipment maker, then euphoric the next when positive comments came from another. With talk of an impending recession picking up steam, the likely hood of this sort of range bound trading continuing for a while longer certainly exists. Fed Chairman Alan Greenspan's message this week to Congress included remarks that inflation remains contained and that the "risks would seem to remain mostly tilted toward weakness in the economy." Bond traders sure liked what the chairman had to say, and even stock traders reacted positively the next day after an initial hesitation on Wednesday. No surprise there; it usually takes a day or so to figure out what the venerable Mr. G has actually SAID after an hour of "Greenspeak." In this case it's clear that more interest rate cuts will be forthcoming - IF conditions warrant. While this is encouraging, the news hasn't been heralded as triumphantly as in the past. Maybe the FOMC's six consecutive rate cuts will turn the economic tide and put smiles back on the faces of US economists, but the stock market troops are still weary from trying to run up the down escalator to elude the bear that's chased them for over a year. Perhaps they're just too tired for an enthusiastic "hip, hip, hooray!" But nothing refreshes a trader's spirit like a nice, healthy profit - and there have been plenty of good trade setups to choose from lately despite the gloom on the street. As tough as it may have seem at the time, preparing to follow the trend even when it's down pays off handsomely for those who add the skill of shorting to their trading toolkit.