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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Moonray who wrote (16933)	8/4/1998 10:57:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 22053

Off Topic Mr. Moonray- Some pretty good points but I think a better measure of the market is the S&P 500. The Spyder (symbol=SPY) is a stock that mirrors the S&P 500 and they trade on the AMEX. The 200 day MA for the Spyder is 104.45. We closed today at about 107. Therefore, the S&P 500 is still about 2.8% above it's 200 day MA. You are correct that this mark could very well be tested tomorrow. The 1998 S&P 500 earnings are around $46. At today's closing price of 1072.12, the (S&P 500) market PE is calculated to be 23.3 which seems a bit high to me. Only three weeks ago the market PE exceeded 25, an all time high in the history of the market! I would feel more comfortable with a market PE of 15-20. Valuations are still quite high. Even if the market PE goes down to 21, the S&P 500 should move down to 966. This is where it traded on January 21, 1998. I do not think this is really going to turn into a typical "Bear" market but rather what we are seeing is just a stiff Bull market correction. This will get the fear back into the investor and correct the overall market valuation problem. As far a 3COM, I really like the company's products and mix, their efficient manufacturing, and current valuation. I believe this correction may last another two weeks and I will be adding to my current 3COM holdings. Keep up the good and informative posts. I enjoying reading them. EKS P.S. I think the NASDQ will lead the Bull back as it has already corrected 12% from it's high (2028 high, today's close 1785)...

To: Moonray who wrote (16933)	8/4/1998 11:32:00 PM
From: Eric	Read Replies (1) \| Respond to of 22053

Moonray, I have to agree with you. COMS looked very good today........very solid base to move up from. Cisco and AOL had good numbers and will solidify the tech market going forward. Long and loving it! Eric