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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: ayahuasca who wrote (5984)	10/11/1998 9:57:00 PM
From: TokyoMex	Respond to of 119973

I see ,,

To: ayahuasca who wrote (5984)	10/11/1998 10:17:00 PM
From: TokyoMex	Read Replies (2) \| Respond to of 119973

Update for Oct 11, 1998 FINALLY, SOME GOOD NEWS This week's market events may be signaling that stocks have seen their worst, and bonds their best - at least for now. We've been looking for an interim bottom in stocks during October, but only after more short-term weakness. We think Thursday's bottom may mark the low for awhile. Other events were the collapse in the dollar, a pullback in gold, and a rebound in the general commodity price level. All of these events suggest a short-term change in the stock market's direction - to the upside. ALCOA JUMPING, SEARS HOLDING Sometimes it helps to look at individual stocks in an index to get clues about short term direction. Aluminum stocks had been one of the sectors badly hurt by the plunge in commodity prices. Their rally at this point would be consistent with the rally in commodity prices. Chart 4 (see Chart 4) shows Alcoa (AA) breaking through a yearlong down trendline and heading for a test of its spring high near 79. Retail stocks are also showing signs of stabilizing. Chart 5 (see Chart 5) shows Sears (S) bouncing off crucial chart support formed in late 1997 near 40. Another Dow retailer, Wal Mart (WMT), has bounced off its 200-day moving average. Since all three stocks are in the Dow, their chart pictures support a short-term bottom in that index. WHAT TO DO? We remain long term bears on stocks and believe that 1999 will see lower prices. So how do we handle an intermediate upturn from here? The most obvious action is to do some short-covering. Those late-comers, who held on during the market's slide, might want to use a fourth-quarter rally to do some selling. It's time to switch some long bond holdings to the short-end of the yield curve, mainly Treasury bills. We still favor defensive stocks. One group that has looked strong recently has been food. A couple of attractive candidates are Campbell Soup (CPB) and Sara Lee (SLE) (see Chart 6). Our favorite defensive group - the utilities - have entered a downside correction along with bonds. While some profits could be taken at this point, our longer-range outlook for this sector remains positive.