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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (6224)	10/28/1997 7:31:00 PM
From: ItsAllCyclical	Respond to of 9285

Roger, regarding monday's theory. You could very well be right, but I think a certain amount of the selling was due to technical indicators (7,600 support), sell programs, and the bounce back could be somewhat attributable to the large short interest in the market currently. If we do bounce higher I expect resistance between 7,600 and 7,800. We've bounced back too quickly. I see a flight to quality high tech issues as investors who are below water cash out their loses as the volatility becomes too much. I hope you're wrong about 8,000. I think it would be bad for the market long term (plus I increased my shorts again after covering). I think today's rally was somewhat "fake". Institiional investors loaded up on quality high-tech issues such as INTC at 70, CSCO at 70, COMS at 38 etc... People took this as the overall market is ok and bought into many of the more speculative secondary issues like xcit, lcos, yhoo, vias etc. Many of these issues are still incredibly overvalued by most standards. I expect we'll retest the 7,200 level by friday. I only really follow tech issues so take my comments in stride as for money flows. I've only been in the market for 3 years now and this has been the most exciting 2 days by far. As Ted would say, "Those fall colors are looking really good". Jim