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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (11347)	5/6/2002 11:16:42 PM
From: techanalyst1	Read Replies (1) \| Respond to of 57684

Yeah Bill, exactly right. But what is really going on with the market? No rally can be sustained because no one trusts analysts any more. Earnings for the most part are 2 months away with lots of companies in the tech sector (specifically software) back end loaded, so no one wants to come out and say they're doing great now... look how it fell apart the last few weeks of the last quarter. Meanwhile we have stocks with bearish chart patterns and breaking support left and right. No one who can read a chart worth a hill of beans wants to commit to a stock that hasn't met downside measuring objectives because they're not sure that fundamentals will support the price anyway, so I bet that money is waiting for those measuring objectives to be met. Shorts are reading the charts the same way........... so no rallies will hold. Was there any analyst defending IBM today? WHO in their right mind wants to tell clients to buy IBM when it breaks multi year support? They're probably all hiding under their desks and thinking back on what kind of calls they made when it was $120.... Ring a Dingee! Mr. Attorney is on the phone for you! Shorts know that this stock is going to do just what orcl has done (no, not going to 8, but down down down) because no one will want to buy it now and no analyst is going to want to stick their neck out defending it. So what makes the market reach a sustainable bottom, let alone rally? I don't know. SP support is about here, but that doesn't mean it will hold. The storage sector has held up reasonably well.... maybe that sparks a rally when they report this week and next or maybe Csco will surprise us with some needed good news. The real problem comes in with............. what happens if the small caps start to sell off? How quickly will they puke it right back out when a fund decides to sell off a stock with a small float and low trading volume? That is where I see the real danger in "the market". Not good to have only small caps rallying. TA