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 : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (17667)	12/6/1998 10:27:00 PM
From: Dew	Respond to of 53068

SPNSF great potential Euro contracts are rolling in. Check it out.

To: Larry S. who wrote (17667)	12/6/1998 10:33:00 PM
From: DanZ	Respond to of 53068

TIE, GLM, other stocks that do well during inflationary times. I bought a bunch of TIE at 9 13/16 for what I hoped would be a quick trade to 11 3/4. At the time, the stock had formed a base at 9 1/2. It broke 9 1/2 last week, most likely due in part to the production cuts at BA, and the stock made a new 52 week low at 8 9/16. Metal and oil stocks generally do not do well during disinflationary times although there are counter trend rallies from time to time as bargain hunters come in to temporarily support the stocks, and because of false starts on the fundamentals. I added to my position in TIE at 8 13/16 because I feel like the reaction to Boeing's production cut backs was exaggerated. The stock looks like it has started to base again at 8 1/2 but it needs more time before I will have confidence that a bottom is in. If you are right about oil stocks moving higher, then I would expect metal stocks, as well as TIE, to move higher because oil prices make up a big part of the CPI. Even if inflation doesn't become a reality, the fear of inflation should move metal stocks higher because they are all way down and any positive news should move them a big percentage in a hurry. Just as the semiconductor stocks bottomed when they were out of favor, the oil and metal stocks will bottom too. The big question is when and whether they will go lower before a bottom is in. I'm going out of town tomorrow afternoon and won't be back until Friday. Best of luck to all next week. I may or may not have time to log on to IRC in the morning. Dan