To: IQBAL LATIF who wrote (16294 ) 1/11/1998 3:40:00 PM From: J.T. Read Replies (3) | Respond to
IKe, There are red flags everywhere, unlike in the past where you could find pockets of strength and or leadership in the market that was correcting from one industry to the next. Now, it is like the tail wagging the dog. The momentum boys looking for rotation to different sectors have no where to run to and no where to hide IMHO. Cash is king for now. HSI is already below critical 9000 with close of 8894. We need hope for "island reversal" back above 9000. Nikkei must hold 14400-14600 as last bastion of support to lend a small helping hand to global markets. Failure below 14,400 is ominous as we go into post 5 year low territory. On the domestic front, Groves must exude positive comments for next two quarters b/c his "every word will be extrapolated to the nth' degree". Small scant ray of hope IMHO, but possibility still exists. The deck of the cards is tilted lower still, IMHO. This adjustment must be played out for new opportunities to unfold. FWIW, my targets are DOW to test 7150-7300 area before short rally unfold to 7640-7740 area. Re SOX: I believe 243 does not hold within two weeks and we test new lows to 214-224 area before any potential base building can begin. This will be a roughly 45% correction from Aug highs. SPX to break 900 and rebase to 815-835 area. Comp to test 1340 area. Failure to hold this key support level wil bring it back to 1200-1225 test area. IKE, I think you know my biases well enough, but thought I should post my numbers now, before potential carnage unfolds. On the upside, I have DOW to 7850 area, SOX to 295 area, SPX to 960 area COMP to 1615 area. All OMHO. JT
