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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Danielson who wrote (16613)	8/13/1998 3:49:00 PM
From: Richard Habib	Respond to of 213177

Well, tend to agree with most of the previous comments including the idea that good results this qtr could provide a good spike because of the known risk. Whether the stock falls back to 37 1/2 or 35, I think it will fall back and when we do it appears 40-41 is going to offer decent resistance. In general I feel the market as a whole is threatening to fall much further for much longer than most people are anticipating. As I view the world and I've been in near daily contact with clients throughout SEA, most of the world is in dire straits or moving that way. The only thing holding this thing together is the U.S. market and the only thing holding that together is techs, consumer spending, and a vague belief that people won't go to cash or bonds in a sharp decline. As to techs, I'm quite concerned that Asia may reduce earnings and cause a pre-announcement in someone like Intel which would be a severe blow. As to consumer spending, it's a circular logic sort of thing based on the market, so a declining market would result in a powerful negative feedback loop for spending. As to people riding it out - don't bet on it. I'm in mostly cash and sleep very well thank you while still making a little money on day trades. In this sort of market we can't assume stocks will continue to make new highs even on good news. People have to believe the risk-reward ratio is reasonable. The risk in the market may weight the ratio away from stocks like Apple that have already had a great run. Rich