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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (10087)	11/2/1998 3:24:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

AAAAAAALL ABOARD!!! biz.yahoo.com NSIGHT-Dow barrels higher, guns for record ground By Huw Jones NEW YORK, Nov 2 (Reuters) - The Dow has broken loose of its summer trading range as rekindled confidence in stocks is expected to fuel further gains, with the blue chip index already just six percent shy of its July record high. ''The market is so strong that you cannot afford to sit back and let it pass you by, especially when you see strong advance and decline numbers like this,'' said Frank Gretz, a chartist at Shields & Co. Sidelined cash in mutual funds afraid to lose out in the stock rally, and plenty of room for smaller issues to catch up with the broader market, should help coax further gains. ''The upper level of 8600 to 8700 points in the Dow is broken, and nothing is in the way until we get back to the highs,'' Gretz said. Shield's Gretz also cited the ability of Intel Corp. (Nasdaq:INTC - news), the semiconductor bellwether, to get above $91 per share on Monday as encouraging for the technology sector. Late session Monday, the Dow was up 128 points at 8720. The Dow has sailed through the upper end of its 8000 to 8600 point range which analysts had, until as recently as last week, expected to see holding for several weeks. ''Right now, everything is go, at least in the short-term,'' said Ricky Harrington, technical analyst at Interstate/Johnson Lane. ''Everyone is getting on the bandwagon.'' The strength, speed and breadth of the turnaround has left technicians a little dazed and unsure if the Dow will settle into a new, higher range before a surging again, or whether the rally will continue at a steady clip toward the July record high of 9337. The Dow is up nearly 18 percent from its 7,400 intra-day low during the sharp end-of-August selloff. For the year, the index is back up a respectable 10 percent. ''The sensible part of us says it's likely to be a choppy uptrend over the coming year with price/earnings ratios high amid global uncertainty,'' said Ken Tower, a technical analyst at UST Securities. ''But looking at the market numbers, you see a strong rally, a very typical beginning of a bull market rally and the market is more likely to surprise us on the upside than on the downside,'' Tower added. Few disagree that the lows are behind the market, or that a major downside move below 8000 is not in the cards at present. ''I would like to see the volume expand a bit, but it's getting there,'' said Jonathan Dodd, technical analyst at Morgan Stanley Dean Witter. ''We just take it a step at a time,'' Dodd said, adding that 8,800 was the next target for the Dow, an area where some consolidation would be needed. The Dow has rallied 1,300 points from its summer low of 7,400 in a short time due to the lower interest rates, expectations of further rate cuts by the Federal Reserve, and global policymakers taking steps to tackle and pre-empt financial turmoil, analysts said. Just how much investor confidence has rebounded after its hammering over the summer was clear in the most recent quarterly survey of individual investors by discount brokerage Quick & Reilly Group Inc (BQR - news). Two-thirds of those surveyed expected the market rebound to set new highs in the next six months, and just 23 percent said a decline below 7500 points in the Dow was moderately likely over the same time frame, Quick & Reilly said on Monday.