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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (18340)	5/8/1998 8:46:00 PM
From: robnhood	Read Replies (2) \| Respond to of 50167

Hi IQ, Personally I found the selloff of the previous few days kind of weak and strange, but this rally seemed the same. Not sure what it means , but there seemed to be very little conviction either down or up.. russell

To: IQBAL LATIF who wrote (18340)	5/11/1998 8:45:00 AM
From: IQBAL LATIF	Read Replies (7) \| Respond to of 50167

Some loud thinking before sensitive numbers. I think the action will be focussed on composites and 1860 now becomes a very important support. I will use this as an indicator for my overall trading strategy, if we have a double close above 1860 it will be good for the market. I expect today Export Import prices to be greeted with certain sigh of relief if we find that import prices are dropping and containing 'goods inflation'. This I expect to be the case I will also think that this is a economic sensitive week PPI CPI and FOMC meeting until 19th are all going to have some impact on the market. The situation for me is like this-- 1-We get a very good PPI number and another confirmation by CPI- 19th worries will then be out of window and we can see my very important target of 9198 0n DOW to be taken out decisively. I will base my strategy expecting good numbers showing strong economy with no inflation. 2- We get wrong signals from PPI and CPI confirms we go back very quickly to 1102 level. In such a case we will be sitting on 1092 by 19th even lower in anticipation of FOMC, probably we will see a lot of "I told you so'. If you go back to Oct, we did have a slight aberration in CPI came way out of line - initial sell off was strong but market recovered from the blues. I would assume even if CPI is poor we would have had a similar reaction however in view of FOMC hanging like a 'sword of Damocles' we may see selling pressure until 19th. Considering Kelly endorsement of 'new economy' paradigm last Friday in Chicago I would consider it difficult even in face of higher PPI and CPI that Fed may raise rates the impact would be a disproportionate response to the global markets. AG will not mix asset inflation with actual inflation. I would think he is looking at banking sector liquidity and also at lack of possibilities of credit by the banks, this market is not sustained by credit bubble. I will expect to write on this issue. I think I have many predictions going for the market in line of tradition of this thread I would anxiously wait here in Pakistan to hear news about MSFT PPI CPI FOMC and continue to conquer global distances of the first world from a third world country. I love this unique experience and you all can help me by making my research easier links where you find news which may impact the big picture. I will today expect SPM to close above pivotal 1120 and also composite 1860, I also think Taiwan rally will put some life in SOX and we may see an attempt to 321 area. I like INTC TXN ASND my stocks moving in right direction. I will like to reiterate HWP importance. In DDX I would like some positions to be initiated in RDRT and APM say within a frame of two months. I am a buyer of SEG above 31 WDC above 22 and QNTM above 25.80.These positions are for a long term investor with a view of three quarters.