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

To: LTK007 who wrote (28894)	2/9/2002 9:20:45 AM
From: t2	Read Replies (2) \| Respond to of 99280

if we get to the 1600s the whole number 2000 will become a greater point of resistance than before---the buying pressure at 2000 would have to be awesome to rip through it--the over hang at 2000 would be to the bull what kryptonite is to supeman:) if we get into 1600s. Me,i just watch the indicators,and they are saying 1600s can happen as of this moment in time. What primary indicators are you looking at to suggest this will happen? What concerned me Friday was the way in which a lot of the old high fliers; the stocks that usually are the highly shorted names. That hinted of short covering going on in a significant way because no one in their right mind would buy the emlx, vrts types of stocks in this market, imho. Sure I think many of the big caps with still high PEs would be bought if funds have cash (ie. msft, intel, dell etc..) but buying those mid cap Naz high fliers does not make sense because of the new risks involved....risk averse and the need for a more reasonable PE will probably keep selling pressure on these stocks. The other important thing to note is that fund flows in the last few months were targetted for the Growth Funds and you would expect that a lot of that money did get used for such stocks. Are people still interested as much in this group as they were back even 1 month ago...I doubt it. Not when any accounting issue can cut a stock price in half, especially if the company involved supported a high PE. Contrast that with a stock like Whirlpool (whr) or EDS that faced acccounting issues last week but the losses were not as steep. The additional risk may not have been factored into some of the Nasdaq stocks yet. JMHO