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 : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (5467)	2/4/1999 11:39:00 PM
From: brian z	Read Replies (2) \| Respond to of 99985

The market internals today were terrible. Advances were overwhelmed by declines 2674 to 4370. The Nasdaq was hit with the third worst point loss ever at -83 or -3.3%. The tech leaders were killed with DELL -5.50, SUNW -7.13, MSFT -7.75, and INTC -8.56. But I still see this as just a serious profit taking. The Nasdaq is up huge numbers since the October lows. The constant record setting pace has greatly extended these stocks and we could easily see another -10%(I don't think we will) drop and most of these stocks would still have positive gains. With 14 record closes in the last 20 days of trading it would be irrational exuberance to not expect some profit taking at some point. The good news is that the Dow held ground in the face of the monster tech sell off. If the jobs report tomorrow is ok to the street, then we could see a bounce there.

To: StockOperator who wrote (5467)	2/5/1999 2:17:00 AM
From: neverenough	Read Replies (1) \| Respond to of 99985

Friday should tell the story, if we continue down and don't recover before the close, we're in serious trouble. I believe both the Dow and S&P will break major support lines next week and we will slide much lower than most people think. The internals suck and the AD has gone from bad to worse in the last few days. But hay it will gives us great buying opportunities within the next few months. Now if the Dow, S&P, and the NAZ can close higher tomorrow, than I believe that this is just profit taking and we should start to move back up to new highs again, which will probably go higher than most people think, just setting us up for the big CRASH by summer. So as lame as it might sound, I believe tomorrow will be the key to determining which way the market is headed in the near future... Bong

To: StockOperator who wrote (5467)	2/5/1999 10:57:00 AM
From: Terry Whitman	Respond to of 99985

<Oh the bears are excited tonight. Old bulls are converting left and right. They even got GroundZero with today's move. Is this the beginning of the big kahuna? Could be. But then again, I don't believe one days trading is enough to accurately make that call.> I agree, one day certainly doesn't make a trend (well, I guess it does make a one day trend). You'll have to forgive the bears for getting a little excited, though. It's been a rough couple of months for em. -g- Nasdaq has corrected from 32% over the 200 dma to 27%- It's definitely in danger territory still. I think sector rotation is going to hit the techs hard. Their day in the sun appears to be heading towards dusk. The only question in my mind is if the tech stocks take the rest of the market down too, or if we just get consolidation and rotation. BWDIK, TW

To: StockOperator who wrote (5467)	2/5/1999 6:06:00 PM
From: StockOperator	Read Replies (1) \| Respond to of 99985

Man's greatest invention - the stock market. I wouldn't be surprised to find out Bobby Fisher turned to chess after a unsuccessful career on wall street. This racket will teach you more about your strengths and weaknesses as a person than any analysts's chair. Assuming, of course, you hold on your money long enough to acquire that insight. Its should be no surprise that the on-line brokers are doing as well as they are; as more people discover wall street (trading), silicon investor will definitely get more crowded. And you can't blame any of them. Unless making pizzas for a living is your passion, why do it - long hours, seven days a week, never a holiday. Hell we've got lawyers and doctors leaving their profession to trade. There must be something to it. I'm just happy I've got a head start on all of them. Of course many will lose their @ss and eventually go back to their day jobs - never realizing that preservation of capital is the first lesson to be learned. Any of you read the story the other day about the guy that borrowed $40,000 off his credit cards to trade with in the market. He said he needed "seed capital". His first trade's were in the high flying internet stocks, which happened to be right at their peak. He lost all his money in a few weeks. @hit happens. Where and when it stops nobody knows. Anyway, enough babbling. I haven't downloaded today's data as of yet, but there are some very interesting divergences out there. Rates rise - utilities rise; trannies rise two days in a row - NAZ killed over same time period; besides the DOW rallying hard at the end of the day. We are at that make or break point in the market. You bulls and bears fine tune your analysis this weekend because only one of you will be right. Oh yes, don't forget, that the impeachment vote could very well come late next week. That outcome will definitely affect the equation one way or the other. Have a good weekend. SO