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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (48126)	6/5/1998 12:33:00 PM
From: gbh	Read Replies (1) \| Respond to of 61433

One man's view of the market's direction: Wrong! Dispatches from the Front: Cramer Likes the Whiff of the Job Numbers By James J. Cramer 6/5/98 9:06 AM ET I hate to be a Pollyanna, but wasn't this number perfect for stocks? We had good job growth and no real increase in wages. Couple that with yesterday's productivity number and you get the key to the whole shooting match: The country is putting out goods like mad, with not enough places to put them. Deflation. Consequently, prices are stable to lower, while interest rates are probably too high. We can't finance this inventory at these short-term rates -- they are too high. So manufacturers will have to cut prices to move goods, particularly goods once headed to the now-ailing regions of Asia. That's why the Fed can't tighten. That's why people want to be in deflationary stocks. That's why the market's tone is changing for the better. Or as Jeff put it graphically when he grabbed his neck and twisted it: squeeze coming. The squeeze will probably be led by Motorola (MOT:NYSE). I am neither long nor short Motorola, but the company gave you just enough hope to make those who are short cover, even though they should have had a win. Can the squeeze be maintained all day? I can't answer that question. I won't be at Penn Station at 3:05 p.m. to gauge the traffic on the Cannonball to East Hampton. Or in the 4:17 clubcar to see whether Tanqueray or Gordon's gets poured (or bottom-shelf stock if it is a really bad one!!). But there are two clues. The market has some giant secondaries this morning. Watch them closely. Friday secondaries have historically been a huge bummer, with no place to put them. If they hold I wouldn't want to be short.