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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (6026)	6/16/1998 6:49:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Jim, it's not all doom and gloom . I really think that the market is going to go mostly sideways for a while, at least until we get through the next earnings period. Carefully picking good stocks and holding on will be more rewarding than jumping in and out every other day. Are you in CADE and AIRM or STVI and DHI yet ? Looks like there are some optimists behind the scenes: Tuesday June 16, 6:19 pm Eastern Time U.S. stock index futures end sharply higher CHICAGO, June 16 (Reuters) - U.S. stock index futures rallied late to end sharply higher, buoyed by a surge in technology stocks, traders said. September Standard & Poor's 500 futures settled 14.20 points higher at 1,099.50, retracing more than half of Monday's losses in very active choppy trade, floor brokers said. One dealer's buying about 500 contracts and several others' purchases of lesser amounts buoyed September S&P 500s in the closing minutes, traders said. Corrective buying and short-covering also boosted September S&Ps, which were oversold in Monday's decline, traders said. Strong late gains by Intel, Dell and Microsoft propelled September Nasdaq 100s up sharply, buoying S&Ps, traders said. The S&P index more than doubled the Dow's gains on a percentage basis, as the Dow was pressured by research warnings on components Coca-Cola and International Business Machines. ''It's been so choppy it is almost unbelievable,'' one trader said. ''Each day is offering a new adventure here.'' S&Ps gained overnight on likely short-covering and stayed firm for the session. A dollar/yen pullback from multiyear highs and Treasury bond decline tied partly to calmer Asian and European stock markets added support. Floor brokers said trade would also likely remain choppy through June futures and options expirations on Thursday. The contract goes off the boards on Friday. Expiration-related buying likely buoyed S&Ps as well, traders said. September S&P 500s ebbed as low as 1,083.00 overnight, but mustered a decline only to 1,086.50 in pit trade as the contract rattled around a 12-point range most of the day. The contract remained within a shallow trend channel bounded by the April 6, April 22 and May 4 highs on the top and a parallel line from the May 27 and June 3 lows on the bottom, analysts said. The contract tested the bottom on Monday. September S&P 500s rebounded on Tuesday, but some analysts said the contract remains vulnerable to further declines. ''We are seeing a choppy counter-reaction off of support,'' said Terence Gabriel, an I.D.E.A. Inc. equity strategist. September S&P 500s are gearing up to break below the trend channel and target the 200-day moving average in the upper 1,030s in a matter of days, Gabriel said. The contract may reach 1,114 to 1,120 first before turning back lower. Once September S&Ps reach the target in the 1,030s, a meaningful rally may be expected, Gabriel added. A further drop would imply a much deeper correction. Stock index futures took little direction from U.S. economic data released on Tuesday, and little data is scheduled for Wednesday. At settlement, Dow futures were up 77 points at 8,757, Nikkeis up 275 at 14,805, Nasdaq 100s up 37.50 at 1,226.50, Midcap 400s up 5.65 at 354.25, NYSE New Composites up 7.00 at 565.15, Russell 2000s up 7.00 at 444.00 and KCBT Value Lines up 15.65 at 930.80.