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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Muizz M. Kheraj who wrote (31885)	12/23/1997 7:54:00 PM
From: randy kay	Read Replies (1) \| Respond to of 58727

All, Streetcom article about todays selloff: Stocks finished significantly lower Tuesday after a late-day futures-driven selloff. After staging a partial recovery from morning losses triggered by profit-taking and Korea's deepening distress, all the major indices dropped again during the last half hour. Futures on the S&P 500 dropped below a key support level after a big seller stepped in, and stocks themselves followed suit, traders said. With brokerages so thinly staffed, some cautioned against reading too much into what they said was a tough market, holding out hope that Santa Claus will deliver that rally after all. But others saw clear indications of an impending economic slowdown in the pattern that emerged, in which tech stocks and money-center banks softened and utilities and drug stocks rose. The Dow Jones Industrial Average finished down 127.54 at 7691.77. The tech-flush Nasdaq Composite Index slipped 22.15 to 1509.91. The broad S&P 500 dropped 14.58 to 939.12. Even the small-cap Russell 2000 closed down for the day, falling 0.85 to 422.03, after spending much of the day in positive territory. After Korea's stock market posted its biggest one-day percentage drop ever on Tuesday, a day after Japan's Nikkei fell to its lowest level in more than two years, some were surprised that the market held up as well as it did. The ADRs of Korean companies were sharply lower in early trading, but they didn't have much company. "The market's a little punchy," said Douglas Myers, vice president of Interstate/Johnson Lane. "It's easy to buy stocks, but the stocks I've had to sell I've had to work hard to get them done." Tipping the balance in favor of the buyers, many investors are looking to reduce their exposure to equities, Myers said. On the other hand, a flight out of foreign securities and into relatively safe U.S. equities continues to support the market. "The question is, will it be enough?" First Albany's chief investment officer, Hugh Johnson, doesn't think so. In his view, the pattern shows a developing consensus that "things are going to slow and slow sharply in '98." The yield curve is flatter than ever in the last two days, signifying an expectation of slower growth, he pointed out. The benchmark 30-year U.S. Treasury bond ended the day up 7/32 at 103 18/32, its yield slipping to 5.87%. But also, investors appear to be fleeing the sectors that will get hit hardest when growth slows, and migrating to safer havens. While most blue-chips slipped in the last half hour, for most of the day tech stocks and money-center banks weakened, while drugs, utilities, health-care products, alcohol and household products stocks gained. "That reflects concern about the economy and earnings as we move into 1998," Johnson said. "People don't turn out thelights and they don't stop taking drugs when the economy slows." Inexplicably, gold stocks also found buyers today. Bottom-fishing may have accounted for some of the action, Johnson said. But angst probably accounted for more. "When there's uncertainty and volatility, many investors buy gold and gold stocks."

To: Muizz M. Kheraj who wrote (31885)	12/24/1997 8:24:00 AM
From: Kevin	Read Replies (2) \| Respond to of 58727

>>>So, I'll be off and on this thread much less frequently. You'll find me more on the CANSLIM thread and the threads of companies in which I'll be investing!!<<< Hi Muizz. Feel free to post the ideas here. First of all, this thread isn't just Tech Stock Options. We've discussed ideas in many different sectors, as well as index trades. This thread has also discussed black jack, the best pc to buy, how to get me out of trouble with the law, how to build a website, horse & dog racing, and many other topics. Discussing stocks for long term holds shouldn't upset anyone on this thread...maybe other threads, but I doubt here. Another reason why I think you should post your ideas here is because they can be used for people looking to enter leaps. Also, I'm a fundamentalist at heart and LOVE to talk about what price a company is REALLY worth based on their numbers. I love to pick apart a stock and talk about it's good points and bad. I can show you examples of analysis on this thread which you may find humorous (if you like). One analysis that I remember specifically was for a jackass named Cary Salsberg. Judy asked me and Cary our thoughts on AMAT. Cary went as far as to say I was CLUELESS and INCOMPETENT after I broke down the fundamentals. I told him back in May that without irrational exuberence in the market place, AMAT would trade b/t $45 & $60 ($22 1/2 and $30 after the 2-1 split). Fundamentals may take a few months to pan out, but I don't look so clueless and incompetent now do I? <<<g>>> I guess I always enjoy stories with happy endings :-) Hopefully you decide to stick around and share your thoughts here. Two CANSLIMers together (I use a modified version) could have some fun!!! If I don't hear back from you, enjoy your holidays! Kevin