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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36452)	3/15/2002 1:46:40 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68127

[madtrader] Fri Mar 15, 8:29am PST Market Okay, now that the key OEX number of 582.75 that I pointed out two days ago as "THE" bottom turned out indeed to be the case. Let's do some upside target projection here. First of all, let's look at OEX. All of the technicians on the Street is holding their breath and looking at the OEX 600 level. There is a ton of short contracts set at that level. And I believe that will be their own Waterloo. The OEX 600 will be broken, and the next Fibonacci upside level is 630. Of course people are also looking at DJI 10600, we are going to do that today, so it really isn't an issue. The next upside target for the DOW is 10880 (I think I am being conservative on this one). As for NASDAQ Comp, the COMPX should retest the January high of 2100. Which is why I wrote yesterday that we are ready for a 20% run. Of course QQQ should follow to near 44. I am here glancing at the headlines for the major financial sites (I am already loaded up and have little room to add right now), I couldn't help but laugh at the pundits view. People are bashing tech and touting commodity stocks. Well, that really isn't value added. Commodity stocks have had a major run already, which is why a few month back I blasted Greenspan for being clueless. Since commodity names are great leading indicator for a major upturn in the economy. To "chase" them right now at the expense of tech names will be a serious opportunity cost type of mistake. I have no doubt that commodity types such as lumber, paper, basic materials names will still have some upside left. But in this performance driven game, that isn't how you are suppose to play. Let's not forget, rising tides lift all boats! This market's breathe has been incredibly healthy, and it is so broad-based. Something that I haven't seen since 1998. From a relative comparison point of view, technology isn't the most bullish sector right now. But due to their volatility, their percentage gains in this upturn will far out-shine the commodity names. So to dump them now is just stupid. Let's keep in mind I am not telling you to bottom fish these former highfliers that are trading near penny stock levels. I am suggesting holding key IT related, and the classic cyclical tech names. Names like AMAT, KLAC, MSFT....the big ones. none