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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19132)	8/3/1998 8:09:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

So far two consecutive quarters have shown corporate profits growing at raTE OF 5% ONLY, this market is here as result of double digit corporate rofit growth according to Wall Street Journal today-- in my opinion growth of corporate profits in wake of slow down in ASEA and Japan is a given fact but I see that US economy trmains robust, consumption is good and prices paid in case of PMI number were lower than expectations-- Europe is seeing growth in 98 which has not been witnessed in last three years capacity utilisation is higher, productivity is better and economic growth is showing signs of breaking the barrier of 2.3% by end 98, I was yesterday on Champs to watch the final stage of Tour de France, soon after the race was over I walked down the Champs as to watch prefrences of Europeans what I found was that most of the garbage left by the Europeans had US markings either a Coke or a Mac or Disney product, going by what I see on streets I think Europe is coming along very strongly and demand from Europe will benefit US companies a lot. I will think that corporate profits slowsdown will work on the market but I would tend to lean on my oft repeated argument that this slow down relative to market heights will only help in rationalsing this move up, we will go thru a period of consolidation and in my opinion it will be a period of consolidation at levels far higher than what we have seen in Oct--97. We may see these 8550 levels or even 8250 but the band of consolidation will be pivoted around this 1070 area with top side at 1200 and bottom at 1020 this is a band of 180 points where we will see two quarter consolidation like we had post 750 to 990 run, I will like to go long on bottom of wild swings and sell at resistances.For example 1103 and 1136 is the band which should hold today-- the market is a buy at lows for me.