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To: orkrious who wrote (165573)	5/13/2002 9:00:54 PM
From: Giordano Bruno	Respond to of 436258

You can't help respecting that guy. -ng- Same old song, again? MAY 10 -- Wednesday's sharp rally does not appear to owe its strength to an influx of new cash into equity mutual funds. While Cisco's better-than-expected results may have sparked the rally, it strikes us that Tuesday's productivity report may have boosted confidence in earnings growth estimates, triggering some asset-allocators to buy stocks and sell bonds. The steady decline in the market over the previous six weeks may have lulled some into complacency, adding fuel to the fire as those caught short tried to cover. Further, bull markets are generally characterized by a prevalence of "up" days over "down," and sharp downward corrections that shake out the complacency. The pattern for bear markets is just the opposite: a prevalence of "down" days, punctuated by sharp rallies fueled by short-covering. Perhaps Wednesday's rally was strong enough for long-suffering bulls to rebuild their hopes for an imminent replay of the heady returns of the late 1990's. While many feign ambivalence about the lack of any follow-through on Thursday, it appears that the size of Wednesday's rally is enough to convince them of its longer-term significance. But to our eye, the selling that preceded the rally was nowhere near heavy enough to qualify as a meaningful low. -- Thomas McManus Banc of America Securities 9 West 57th St. New York, NY 10019