Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (17039)	10/16/1998 10:34:00 AM
From: clutterer	Read Replies (2) \| Respond to of 120523

LBFC just mentioned on CNBC....

To: Jerry Olson who wrote (17039)	10/17/1998 2:12:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 120523

Options Jerry, I changed my mind yesterday afternoon and went back into the market.Mostly the big brokerages, financials and the top techs; I am building a base from which to grow and start trading again. My reasons: -aggressive/unexpected Fed Funds rate cut.And as Martin Zweig once said: " never fight interest rates". And those are coming down.We don't know how low but I think Alan is huffing and puffing now to get them down. -IMPORTANT: I think the Republicans may get the long awaited majority in Novem ( according to the more reliable Zagbie polls) and their plan is to reintroduce a TAX CUT which is the ESSENTIAL ingredient for this market to continue. This will put REAL ( as opposed to BORROWED ) money into consumer's pockets to get the economy going again. I think Europe and a lot of countries will follow. Taxes are are what is killing Japan's, Europe's, the world's economies. -a weakened Prez and Dem party will be a quick walk over in Jan 99 in the face of slumping industrial production.With last months decline of 0.3%, industrial production was flat in the 3rd quarter for the first time in the current expansion. Remember that a recession is defined as 3 consecutive quarters of declining industrial output. Flat is the first step to down, Alan knows this ergo the aggressive rate cutting. ( Remember, Alan was caught flat footed in 1991: recession was on for 3 months before he recognized it and cut rates. He doesn't want to repeat the mistake. -the first stocks out in these turn arounds are usually the brokerages and banks because they sell th ecommodity in greates demand: cash/loans. Which is what I will play for now, MER,CCI,JPM,?DLJ. -IMF funding by Congress approved: Don't kid yourself. This is money going directly into the coffers of CCI, MER, JPM, all the big banks out on the hook by Russia Asia debacle. i.e., ANOTHER bailout.MER actually made a neat profit this Q. Their announced losses were to write off 3600 people. Next Q profits up . Company is making $5/share , on $50 share that's 10%, pretty good considering what penny stocks with unpredictable futures make. -Japan is going to partially solve Banking crisis by injecting 500 bill of private funds into it. Better if they had cut taxes. I think that will be next;they are slow. - earnings this Q so far are better than expected: ( INTC, Novellus,etc) -So we may not go to 9200 but may be we can go 1/2 way up there. -Balanced budget not bad.So we are going to spend 60 bill of the surplus:bad. However that is only 1/3 of the surplus: good - I am hesitant about the techs. I was unsettled when CATP crashed because of lower eps " because of a cancelled contract from a company that restrained it's tech allocation budget to meet y2K requrements "; a portent of the future for 99? I just bought back the "essentials", LU,CSCO,EMC, that I had just sold. Tie your seat belt Mon, good trading, TA