Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (15876)	12/26/2001 7:21:59 PM
From: Chispas	Respond to of 99280

Santa Leaves a Rally Under The Tree December 26, 2001 by Lance Lewis Asia was mixed last night. Europe was closed this morning, and the US futures were around flat. We opened slightly lower and then went on a Harrier jet move that took us straight up to the high of the day. From there we flopped along sideways for most of the day before sliding back down the other side of the mountain to give back about half the day’s gains. The NASDAQ traded a little worse off and gave back the majority of its gains. The proximate cause of the selloff was supposedly because Bin Laden was possibly still alive and going to be making a TV appearance. Volume was extremely light (.8 bil on the NYSE and 1.1 bil on the NASDAQ.) Breadth was 2 to 1 positive on the NYSE and a little less than that on the NASDAQ. There wasn’t much in the way of news today. It began as the usual quarter end mark-up but ended with a bit of a fizzle. The major indexes (ex- the SOX and NASDAQ) all managed to push up to a new high for the move or at least near it. Argentina’s default on Monday was a nonevent for the markets (obviously, it wasn’t such a nonevent for Argentina’s creditors.) And nobody seems too concerned about growing tensions between Pakistan and India. So, that leaves us with just a few days to go till the books are closed on 2001 and all the bulls have to do is coast into the year-end. Baring some sort of wild event, I suppose they will do just that. How stocks and the euro (which finally debuts as a real currency) trade in January will be the next big things to watch for. The trend has been for stocks to put in lows during the preannouncement season and then rally on the actual news of the earnings. However, that pattern doesn’t seem to be repeating thus far. If this entire rally off the lows was just one big “bet” by mutual fund managers as I think it was and has nothing to do with the fundamentals, then stocks should begin selling off again once people begin to see the data in Q1 in the form of guidance that things aren’t getting dramatically better as many of the lofty valuations on these stocks have already priced in… prudentbear.com