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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (4174)	3/5/1998 4:09:00 PM
From: Market Tracker	Read Replies (1) \| Respond to of 18691

Reuters Market Comment - By Huw Jones NEW YORK, March 5 (Reuters) - The Dow took Intel Corp's <INTC.O> earnings warning in stride on Thursday, but analysts said a sharp pullback going into April cannot be ruled out as a new quarter beckons. "Today is a lull before more of a correction," said John Wosczyna, technical market strategist at Roney & Co. "I think the Dow will come back to a high around the month's end, and then it's very vulnerable and will have a big decline. I can see a correction of 25 percent from this month's high." Michael Metz, chief investment strategist at CIBC Oppenheimer, said, "I think a significant correction has begun." Intel, the world's biggest maker of computer chips, said late Wednesday that first quarter earnings would fall short of Wall Street expectations because of Asian turmoil and slower demand and tougher pricing in the personal computer market. It was a high-profile start to the pre-announcements season, when companies warn of possible earnings disappointments ahead. U.S. stocks opened sharply lower this morning, but the Dow quickly stabilized after hitting a low of 8450. It had recouped to 8490, off 48, by early afternoon. The S&P500 index was off six points at 1040. The Dow has risen more than 1,000 points in the past seven weeks, and today's weakness has been largely confined to the technology sector, analysts said. "If you look at the big picture, this is just a small correction," said Ricky Harrington, technical analyst at Interstate/Johnson Lane. "Stocks are overbought, but that does not mean they are going to correct right now." Institutions still have a lot of money and want to show this is fully invested until at least the end of the quarter, to stave off any big pullback, he added. This would provide underpinning for stocks and prolong a tug of war with the downward pressure exerted by earnings warnings. Rao Chalasani, chief investment strategist at EVEREN Securities, believes stocks could retrace about one-third of the recent 1,100-point rise in the Dow. Jonathan Dodd, technical analyst at Morgan Stanley Dean Witter, said stocks are probably in need of consolidation, but he considers the Dow and S&P500 to be in excellent technical health and not extended. "The Dow is probably not going to pull back a lot, probably to 8250 to 8350. It's not what people thought it would do," Dodd said. "We will get consolidations and corrections along the way, but I just don't think they will last very long and will be a buying opportunity." The breakout in the S&P and the Dow was too strong and too long for Intel's warning to crack the market, said Gary Kaltbaum, technical analyst at J.W. Charles. "Intel is definitely an event, but until you see the utilities and the banks starting to crack, and long-term interest rates at 6.25 percent, I don't think it's the end of the world," Kaltbaum said. At midday the benchmark 30-year Treasury bond, the leading indicator of long-term interest rates, was off 15/32 to yield 6.05 percent. U.S. unemployment and payrolls data for February, due Friday, will be key in determining which way bond yields go in the short term, analysts said. REUTERS Rtr 14:01 03-05-98

To: Ploni who wrote (4174)	3/5/1998 4:10:00 PM
From: taxikid	Read Replies (2) \| Respond to of 18691

as eggs was propelled (hurled) by the same activity.. almost the altime high.. and they keep losing $$ and may need to borrow to restructure and continue operating taxi