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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (15220)	8/31/1998 2:38:00 PM
From: Judy	Read Replies (2) \| Respond to of 42787

The nature of the market has changed and it's time to set aside technicals. A few week ago most indices have violated their 200-day ema, and today NDX collapsed thru its 200-day ema in one fell swoop. The NDX had been the strongest of the indices on the way up, and I'd still expect a tradeable rally off this key support but the rally may be weak and short-lived. The magnitude and swiftness in drop in equity prices today is hardly reflected by the drop in the DOW or NAZ. The market no longer respects any technicals, it is an efficient pricing engine and may be discounting the likelihood and magniture of a recession in '99. A recession would invalidate earnings estimates and forward guidence, also invalidates trailing PE's. Hence past supports may become academic ... historic lows on some quality stocks have already been wiped out. Previously I had thought that cheap stocks would get cheaper. If a recession sets in, some cheap stocks may not exist one year from now.