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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (9012)	5/28/1998 6:15:00 PM
From: Electric	Read Replies (1) \| Respond to of 42787

Chris, HD reported good earnings and ought to be a safe stock going forward.. plus the split, I like it.. Again, thanks Lisa for the heads up on the split.. it is nice to have a plus in the portfolio..lol DELL weak today.. :{

To: Chris who wrote (9012)	5/28/1998 6:30:00 PM
From: Robert Graham	Read Replies (5) \| Respond to of 42787

I think the indices to look at are the S&P 500 and the DJIA. The NASDAQ lead the rally today since that is where much of the public money went into. This is a more sentiment base purchasing by the speculative public that still sees a bull market in the techs despite evidence to the contrary, so they decided to go bargain hunting today. As I have said before, I think it is the public speculator that is the last to know the "music has stopped" due to their sentiment motivated purchases. So I do not think the NASDAQ will have a strong bearing on the nea future of this market. Look at the issues the speculator moved into today. They appeared to have skipped allot of the first and second tier type of stocks and went into stocks like WDC and SUNW and even AOL which I think of as sentiment driven stocks. By the way I think of as "first tier" the leadership of a sector: INTC and MSFT for example. I think of as second tier stocks like CPQ and the stocks that were once leaders like TXN and HWP. I see DELL as a "third tier" type of stock. It is relatively new on the radar screens of the investment community and it is a popular sentiment driven stock. Even though it can be considered a leader in its category of box makers, when money gets nervous, I think it will more likely move to a company like CPQ which is much more well-established. Still, earnings have been very positive and growing. One of these years it will become a much more mature company like that of CPQ. I understand this is different than more common definitions of these terms. But this is so far the best classification I have come up with for my personal needs given the time I have placed in this direction. Now the Internet stocks and stocks like IOM are what I call the "cats and dogs" of the market. They are rather meaningless but still see money when sentiment is running high and speculative in a more mature long term stock market cycle. For that matter, many of the high techs are sentiment driven. Each shorter term market cycle has seen fewer high tech companies participate in the bull run. This has left the public money in these stocks which is not "strong" or dependable money that can support a strong bull run in this sector of stocks. Any suggestions about classifying stocks are welcome. Tomorrow should be interesting. Bob Graham