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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (17968)	10/10/1998 10:36:00 PM
From: Johnny Canuck	Respond to of 70310

Hi Judy, I haven't done anything yet. TLAB hit my first entry point at 32 and ADCT at any price below 17 on Thursday, but I decided to wait for the forward guidance from the AFCI conference call. There is no point investing in back bone infra-structure stocks if the companies selling equipment closer to the curb aren't doing well. The bottom of the food chain needs to be healthy for those further up to thrive. If I didn't own any stocks, these are good long term entry points for investors though. The demand is not going away, the ability to finance it in the current market environment is only being pushed out a few quarters or years. CSCO at 43 declined 40 percent from its peak, this is similar to what happened in 1997 when the networkers showed some weakness in demand. As I mentioned in a previous post this is not the same series of conditions. The pessimism is greater. On Thursday. we reached a new high, 75 percent of all stocks were one standard deviation below their 200 DMA. This is a record for the last 5 years I have data for this indicator. I expect a lot of value investors to start looking at CSCO closer to 35 because it has been quoted in the press though, so the low at 41 and change on Thursday may be the bottom. To follow up with that theme,of all the 60 or so stock I track only DY, JBL and WIND are still about or at their 200 DMA's. They may be worth a look once the market stablizes. Regards Harry .