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.

Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Robert K. who wrote (4275)	10/27/1997 5:05:00 AM
From: Tharos	Read Replies (1) \| Respond to of 17367

Bob, Stock markets like steady interest and currency rates, not uncertainty. What started in July 97 as a "crisis" among little-known Southeast Asian currencies appears to be widening to worldwide stock market declines. Chart patterns in the major indices are seeking lower levels. Look at the S&P 500 intraday low point on 10/17/97 -- A close under this level (931) sets up the negative pattern of lower lows and lays the ground work for a Bear market. There are many unknowns in the the Southeast Asia currency problem. Intel's announcement to delay opening a factory in Texas does not help -- many tech stocks have factories in Southeast Asia. The latest Asian currency in trouble, Hong Kong (last economy in Southeast Asia whose currency is still pegged to the U.S. dollar), jacked up overnight bank interest rates as high as 300% to protect its currency from speculative attacks. Another unknown is this week's visit to Washington D.C. by the Chinese President (I still find it amazing that Communist Dictators are called Presidents). Valid concerns are: Is Southeast Asia tilting towards a recession? Should we assume U.S. companies' sales into Southeast will slow? How will Southeast Asia's cheaper and more competitive exports affect US companies? Will Greenspan and the FED keep interest rates the same to avoid aggravating the current situation? Negative answers (in relation to US) to some or all of these questions could be the trigger to give us a Bear market. I think the markets will come to their senses once they reach pre-defined support levels--DJIA 7600, S&P 500 931, and NASDAQ 1630. The reason I believe this is there is no flight into gold (yes I know the announcement the Swiss may sell 1400 tons affected the price) and the DJUA appears to be topping out.