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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rick Buskey who wrote (53525)	7/27/2001 7:07:31 PM
From: Rande Is	Read Replies (1) \| Respond to of 57584

To all. . . .Careful trying to see what isn't there. July 26, 2001 - The Right Line Report ***** MARKET COMMENTARY ***** How about a good old-fashioned "stealth" rally? For the first time in a long while the markets enjoyed two strong up-days in a row. After hiding out earlier in the week, buyers returned Wednesday and Thursday to drive stocks higher despite a bipolar earnings climate that included both good and bad news. . . . etc., etc., etc. Stealth Rally? What market is this guy watching? [Though I like his terminology. . >smirk<] We are in a VERY tight trading range. . .which seems to be getting tighter with each passing day. . . as lows get higher and highs get lower. . . on stocks [MSFT, INTC, CSCO, ORCL], sectors [SOX.x, BDH, BBH], the COMPX and the Dow. Hello? The Nasdaq is hovering at 2025. . .right about where it is right now. . . give or take not more than 75 points. The Dow looks like it has a bit more swing to it. . .about 200 points north or south, but then it is 5 times the size. . . so on a percentage basis, it is in an even tighter range than the COMPX. I am intrigued with how each day there are a handful of stocks that gain 15% to 20%. But they are never the same names two days in a row. And just when you think there could be wind in someone's sail, they roll over and lose most everything they gained. This market is much like sailing in a climate where the wind shifts directions every 5 minutes. . . . leaving the sailor tacking in circles. I can't remember a July/August season which has had smooth sailing one way or another. . . instead we are always getting caught up in those late summer doldrums . . where we drift aimlessly as we wait for wind to kick up once again. One reason is that with such low volume, the stocks, the sectors and the whole market may be blown around more easily. It is easier to paint the tape. It is easier to spoof the ticker. And it is easier to con the public. As you've heard me say plenty of times here, I prefer steering clear of July/August trading range markets. The diminishing returns are rarely worth the extra hands required to stay on top of the quickly shifting winds. So again, I warn. Be careful trying to see what isn't really there in these markets. Best wishes all. . . Rande Is