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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (2659)	3/6/1998 9:31:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 4969

Robert, I totally agree with your assessment and the resulting strong rally from strong employment numbers, once thought a catalyst for strong sell offs. Ididn't catch the bond numbers, but i think the bond market ended strongly as well. People are feeling that given asia concerns and other earnings concerns, that strong employment indicates the economic cycle has legs. Nonetheless, if earnings turn down and employment stays up, you could get a very dangerous, combustible situations with potential for a slow down created by increased costs, leading to layoffs, to more slowdown, etc. They call the economy a cyclical event for a reason. As far as tech stocks are concerned, I think yo will see a strong rotation from high flying, high tech stocks like Dell, CPQ, MSFT and INTC and CSCO, and a few others into mid and small cap stocks which are less vulnerable to a slowdown and have not participated. I have been personally looking for value oriented plays. As well, people might start dumping and exiting technology (some tech stocks are at that state already) and look for healthcare and other defensive stocks. Personally, I look to buy good value, well managed, strong companies, which I consider undervalued by the street and lumped in with the rest of the garbage. Some call it value investing, some affectonately call it bottom fishings. I think you have to be a good stock picker, a bottom fisher, to perform if this market pulls back, which I think it is on the brink of doing. By the way, CPQ, bad prerelease, dell was down 7 or so, coms 2, etc. and so forth. Monday will be ugly again at the open...wouldnt expect to continue to see strong bounces like today......after a while biddes get tired of their buying proving fruitless and they flat out sell their positions to raise cash..... I like that...blood in the streets...great time to make money, but I see a pull back for a few session, starting with a bad one on MOnday. Regards, Steve@yamner.com