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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (49005)	8/2/1998 5:19:00 PM
From: Nelson Chang	Read Replies (1) \| Respond to of 58727

Is anyone nervous with the following? 1) We had 2 Nasdaq rallies, one on July 27 which "reversed" from a +40 down day to close up 3, and one on July 30 with the Nasdaq up 39 point. However, both those days followed more selling as the Nasdaq then lost 36 points on July 28, and lost 48 points just Friday. I'm worried that many investors are getting sucked into these fake rallies and are getting stuck with stock. This creates tremendous short term resistance, and prevents us from reaching an oversold condition if there are rallies that produce nothing. 2) The Dow Transportation has penetrated its June low. The Dow Utilities is right at its low. And the Dow Industrials is nearing its June low. 3) The advance/decline, breadth, and % stocks above their 200 day MA deteriorated badly throughout the week. 4) Defensive stocks for the blue chips (ie. Proctor & Gamble, Gilette, etc.) and defensive stocks for the techs (ie. the internet stocks) are starting to break down. Those are the stocks of "last resort" that people move money into. What now? 5) Massive speculation in the tech sector that AOL, DELL, CSCO earnings, and the YHOO split will cause everyone to buy. 6) According to many money managers, there are still many clients with a significant % of their portfolio in stocks. 7) According to Investor's Intelligence, there are still an overwhelming ratio of bulls to bears. 8) "If the dress is a mess, Clinton must confess"