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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Barbara Barry who wrote (19279)	5/28/1998 1:01:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Barbara; I would not put a lot of faith in what a salesman tells me about buyers coming in. ( that late rally was program trading for sure )..I don't know if it was short term short covering but I do know that if it was from 2:30 to close it made an average 1085 ...other than that most of the day was below 1085, so the average stock changed hands considerable less than it did the day before..and I hate to look at an hour and a half and say she is really headed up, on a day that we set an inter day low lower than anything since March. The bonds ought to give her some bounce..more than she has got so far..but all in all the internals got worse except for the more liquid stocks, if bonds do a sell off we are in for more down side..prior to this I had 6% as the magic number..I think interest rates now got to stay below 5.75%..or we get a problem. Last year the market could handle 7% ...but not now so to me that's not real improvment..and BTW while the SOXX is up this year..it's still well below last summers high. While the rest of the market is not real bad the Disk Drive sector and Semi sector are still in a bear market in spite of their more recent run ups. This market wants to correct at least 10% off it's highs maybe 15% ..then maybe the trend will start up again instead of this two step or what ever it is. Jim