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Strategies & Market Trends : Bear! -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (126)	7/10/1998 12:07:00 PM
From: R Stevens	Read Replies (2) \| Respond to of 285

The "safe haven" seems to be in the big caps, especially the high tech big caps. Here is a comment from Tom Dorsey who wrote Point & Figure charting in that regard: Look at HFX if you want to see where the money is going. HFX trades on PHLX and is the 5 largest cap stocks T,KO,XON,GE,MO and has made a new high. The NDX is close to a new high and is the 100 largest cap weighted largest OTC where 53% are csco,dell,msft,intc, wcom. The hot money is going in these stocks. When you get to the middle and lower eschelon where Mr. Jones typically resides they're bullet riddled. Stay large cap.Tom Message 4990742

To: Les H who wrote (126)	7/10/1998 1:42:00 PM
From: Ming	Read Replies (1) \| Respond to of 285

Effect on overall market to date: next to nil. European recovery will make up for Asian shortfall in terms of earnings. Besides, many blue-chips(like GE)are benefitting from the low-rate environment. They have huge financing units(In GE's case, it's more than half their business), which are raking in record profits, while the company's debt servicing fees have drastically dropped. Its appliance and Aircraft engines units are suffering, but that's only 20% of their business.(During the 80s, corporate bonds yielded consistently more than 10%). Service sector making up for manufacturing sector. Manufacturing stocks already have gone down, and now already are an increasingly insignificant part of the market. If they go down further(and they most likely will), then that won't jeopardize the big picture.