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

To: George Mc Geary who wrote (19154)	8/5/1998 8:07:00 AM
From: IQBAL LATIF	Respond to of 50167

I think the stocks we have been highlighting here are holding this sell off very well, look at IBM and INTC although broke that 50 days MA but considering the tone of sell off and breadth I was glad that it was alright, I would certainly like these stocks to move higher and no better day than today -- I would think NOK CSCO and our ASND will see accumulation also TXN at these oversold levels. I am looking at report about robust PC sales in Europe I would think that this will 19.5% growth in PC sales with Germany France and UK leading and other low countries and Italy Spain also showing new growth will help the softwares and Techies- I am also reading good reports about Novell, it looks like turning corner, by the way I did purchase Maxtor yesterday, may few of therear buyers, I was seller of 1020 puts at the end but my main interest was to look for that instituional selling, that is still not happening most of the people are short like me selling calls and buyinh higher strike puts but none of us is ready to liquidate, the market instruments provide a perfect hedge, one really does not need to liquidate, but these index shorts are also looking for first sign to cover our long puts and naked calls so in case selective buying comes in this market we will see a very smart rebound. Rumour based selling has no legs and I am sure that this selling has not much steam left it was 105 MSFT and CITIC0RP big sell off has now put this stocks on a support- on RUt 2000 we are leflt with very limited selling at around 4-5% maximum moreover look at the RSI it is clearly indicative of a very much oversold situation, now small and mid caps will not languish for eternity and I think that this lopsided sell off in itself is a sign of a market unable to find the stocks to beat, when you don't have excuse to sell leaders you sell the beaten down little realising that in it self can casue a rally-- I think we will in all likely hood may test 1170 or even 1155 that is very near to our 200 days MA and OEX will be hit the 200 days at 506 in my opiniuon we will see oversold positions and shorts to cover between this gap and 200 days MA- present earning situation or fundamentals do not warrant a break below 200days if it even happens it will be a false break like 28th Oct break-- lets watch and see and try to leg out at most appropriate time- ofcourse the risk remains that we can see 506 be taken out if INX breaks heavy that is Yahoo and other high multiples so far withstanding selling give up but I would think that we will see this RSI of RUT to help thru rotation if in case we see some more cracks in stocks which have so far remain unaffected.