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.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Red Scouser who wrote (47952)	2/13/1999 12:42:00 PM
From: Kenya AA	Read Replies (2) \| Respond to of 97611

Red: Duh, I dunno. Maybe ..... never use it. I'll ask Mr. K and let you know. K

To: Red Scouser who wrote (47952)	2/13/1999 1:36:00 PM
From: Kenya AA	Read Replies (2) \| Respond to of 97611

From today's IBD .... CPQ RS retreated a bit to 87 from 89 It was pretty much all DELL stuff .... Article to long to retype, but I like the title - "Dell Snuffs Rally But Market Should Survive." CPQ mentioned in the article as being a concern for DELL - "heightened competition." DELL mentioned as a top sell by Janus Growth & Income and AIM Charter A Fund. Some general comments from IBD's "The Big Picture" - Negative comments about DELL sparked a sell-off Friday in tech stocks that spread to the broader market. Stocks were holding on to most of Thursday's heady gains until the selling picked up in the afternoon. Volume was appreciably lighter on both the NYSE and NASDAQ, normally a sign that a sell-off lacks intensity. But lower trading probably had more to do with the upcoming three-day weekend. DELL gapped down 7-3/8 after BBRS and SSB raised concerns that rival computer makers are closing the efficiency gap between themselves and the direct PC marketer. The analysts think DELL will still beat earnings estimates Tuesday. But they said that DELL's selling prices may be coming down as competitors adopt elements of its direct sales model. DELL ended the day down 12 points to 89-7/8 on more than triple its typical volume. Despite the drop, the stock remains in an uptrend and almost 8-1/2 points above its rising 50-day MA. But DELL's tumble showed how vulnerable the NASDAQ is to its big leaders. Before Friday's action, the stock accounted for 3.7% of the NASDAQ composite. The index slumped 83.75 points, or 3.5%, to 2321.80, giving back almost all of Thursday's 96-point rally. Pre-holiday volume dropped 13% as declines retook the lead 7 to 4. The selling wasn't as bad in the other major market averages. The broader S&P 500 lost 1.9% vs a 2.5% advance the previous session. The DJIA gave up only 1.0%, half of Thursday gain. NYSE trading volume slipped 16%. Declines lead advances 3 to 1. Despite the gyrations of the last few days, the DOW and S&P 500 ended the week down less than 1%. Both indexes remained in their 5-week trading ranges. The rotation out of tech stocks and into blue chips can be seen in the market's A/D ratings. The NASDAQ's rating has dropped to B from A while the DOW's has climbed from a negative D a week and a half ago to a neutral C. The NASDAQ's rating, as well as the S&P 500's, remains positive. meaning that institutional investors are still building positions. J.P. Morgan continued to support the DOW - it's shares climbed 2-3/16 to 108-3/8. The only other DOW stocks to rise more than a point were HWP and IP. The Mutual Fund Index, which had closed below its 50-day MA earlier in the week, has held above the point where it broke out of a cup-with-handle formation in mid-December. It wouldn't take much more selling for it to breach that level. Regardless of how much the indexes or leaders hold up, your own performance comes down to the specific stocks you own. It's probably a good idea to be reducing margin and be ready to sell stocks that start breaking down. Make sure you have a large enough gain in a stock before you try to ride out a correction. It doesn't make sense to let a decent gain turn into even a small loss, much less a big one.