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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Daniel W. Koehler who wrote (15894)	8/9/1998 6:25:00 AM
From: J. P.	Read Replies (1) \| Respond to of 77400

<If memory serves, Csco's last 3:2 split was effective around Dec 17, 1997. CSCO tanked in early Dec 97 from 90 to 72. It was about 80 on Dec 17, split 3:2 (to 53), it ran up from 53 to 62+ in January.> Well, if you recall, December was not a strong month in general for stocks. If the Nasdaq is basing or trending down, it's tough for any individual issue to show strength. Once the market turned bullish, CSCO showed strength in price action. Right now I think we are at a pivot point for the stock market. IMHO, I think that we are at the start of a very bullish leg up on all three major indexes. I think tech is going to show great strength. Why? First of all I think that Tuesday was a climax selloff, specifically tuesday around 2:30 p.m. During that selloff we hit the 200 day moving average on all three indexes, the DOW, SP 500, and Nasdaq composite. If you look at historical charts for the last couple of years, the 200 DMA has always provided bedrock support and a starting point for a bullish leg UP. Why Tech strength? I can detect Compaq is once again being loved by the street again, and seem to have their inventory problems under control. And even the hated disc drives are showing the first signs of getting some tiny bit of overcapacity and pricing power issues resolved. If this is true, the street will be ahead of the curve on market capitalization. Anyways, I'm getting verbose, sometimes when I have an options play in the works, I want the markets to be open even on the weekends!