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Technology Stocks : INFOSEEK (GO) -- Ignore unavailable to you. Want to Upgrade?

To: Manly who wrote (8630)	12/21/1998 8:07:00 AM
From: tonto	Respond to of 9343

Good article and I believe it expresses some of the comments here. The net stocks have been/are hot. But, after this run, what happens from here is what we watch. Nothing to date has slowed this market. The point here is that the Internet player should realize that the current run in 'Net stocks is much narrower than the October-November surge. The market's weeding-out process, then, is placing a higher premium on individual stock selection. It's kind of like the cumulative NYSE advance-decline line turning down as the major stock averages begin a new advance: the probabilities of holding a winning stock have shifted. Cup-with-handle Meanwhile, the S&P 500 index is forming a bullish cup-with-handle formation. This pattern, popularized by William O'Neil, is something I've spoken about in previous columns. A few stocks that have recently broken out of cup-with-handle patterns include FDX (FDX), General Electric (GE), Guidant (GDT), Infoseek (SEEK), Jabil Circuit (JBL), McDonald's (MCD), Medtronic (MDT), Nokia (NOK.A), and Sonic Automotive (SAH). The above stocks are trading at or near 52 week highs because they have already had their break out. In the case of SEEK, does it continue to move closer so soon to the $55 price projection the most favorable release by Merrill gives it 12-18 months early, or does it drift down because of the skeptics such as Robertson Stephens? The next few months will give us that answer. Best of luck to all. The interest rate backdrop, as well as indicators of breadth, volume, and sentiment are important factors to consider when gauging the health of a market. But the manner in which stocks act, specifically the major averages and individual stock leaders, is where the rubber meets the road. And on this front, the advance that began Sept. 1 has yet to play out its hand. What the funds are planning for in 1999? dailynews.yahoo.com