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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (20378)	4/13/1999 7:08:00 AM
From: Electric	Read Replies (1) \| Respond to of 42787

dennis, I would buy CMGI at these levels, I dont like to spread that ammount of cash around for a stock though, so I would buy options and might when the stock gets near the split time. I saw the sucker at 120 and knew it was buy time. CMGI is a core hold, an excellent stock. I also like your NTBK play and VERT too, I wish VERT had options, I like to leverage my picks if they are over 100 per share. Dont give up on DELL just yet, however I agree that the sector is in the crapper, making the sub 1k machine is bad for business, margins are too low and if anything that is what is likely to kill DELL, if they go there earnings growth quarter to quarter will be minimized. Keep your eyes on smaller names, I know I dont want to touch them but a few that I watch now and then have been moving. I am with you about the nets though and I dont mean the B-Ball team.. ~ggg~

To: dennis michael patterson who wrote (20378)	4/13/1999 12:37:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

Looks like money is starting to return to the NASDAQ which is a good sign. I see where at least some of this money is coming from stocks that support the DJIA and S&P 500. I can see this in their respective indices. I am seeing a return of Internet leadership to the market. Even YHOO is showing some strength in its recovery. MSFT and INTC still are weak, but appear to be going through a bottoming pattern. My father noticed unusual selling in his preferred stocks that conservative people have been using as a safe haven. It looks like even the more conservative monies are starting to enter the market believing that there is something behind this rally. This movement of money we see today has happened on the heels of positive economic and corporate earnings news. This is the excuse that many more conservative oriented players were waiting for before reentering the market. So I suspect more people on the sidelines are starting to move back into the market. This does not make a pattern yet, but it is starting to look more positive now for a continuation of this rally. If this movement of money back into the market continues, I would look for breakouts that this new money will make in the market. I suspect we will see AMZN, AOL, and even YHOO see some of this money. Next we can see companies like MSFT see this money as the more conservative players continue to enter this market as the market continues to broaden out. Update It looks like some of that money I thought was coming from the S&P 500 market is actually leaving the market and the profit taking is becoming more widespread. There is profit taking in the markets that started as new money moved in. A program sell started off this profit taking. We have been seeing this profit taking start to show up yesterday. Some of the stocks that I see others here at SI playing looked to be ready for a pullback. TRIN was showing a pattern of increasing in value. NASDAQ is leading the sell off. What is interesting is that this is happening on the stocks that are still in the process of recovering from their sell off like AMZN. There is still nervous money out there that want to get out of their positions where they lost money. This usually is part of a normal basing pattern for these stocks. Still the market itself now may be now in that pullback that looked to be coming earlier. A warning signal has been given by MSFT and CSCO where they have broken down from their basing pattern as shown on their 15 minute chart. I am looking at INTC right now. I see a widespread distribution in the NASDAQ market that is even effecting S&P 500 type of stocks but to a lesser degree. This may be the beginning of a pullback in the market I was seeing some evidence for which I think is important for further gains in the market. We are now seeing a predictable bounce in the market that first showed up as some key stocks approaching important support during their sell off. As soon as the smart money had an opportunity to sell with new money coming into the market, it SOLD. I want to see if this profit taking leads to a reentry into the market and further gains in the short term. If the rally resumes, I do expect to see the rally broaden when buying reenters this picture. Lets see how quickly prices recover from this sell off and what stocks the money returns to. So now what did I say about staying near your terminals as a day trader in this market? ;) Bob Graham