To: Ruyi who wrote (22625 ) 4/19/1999 9:50:00 PM From: Bountybull Read Replies (1) | Respond to of 37507
State of the Market Apr 19 1999 3:40PM CST Archives... Massive Reversal For The Street by Blair G. Jeffery Sr. Investments Analyst The domestic stock market turned itself upside down this afternoon as tremendously anxious traders sold shares at a furious and record pace. Technology stocks were largely to blame for the skittish style in which today's trading transpired. The high-tech embellished Nasdaq index dropped a whopping 135 points on an active 1.1 billion shares traded. Today's landslide was so intense it represented the second largest point drop in Nasdaq history. Internet, communication, PC and software stocks inflicted heavy damage on the over-the-counter markets. Volume leaders Amazon.com {AMZN} , E Trade Group {EGRP} , and Microsoft {MSFT} all encountered the selling momentum. Despite the obvious negative sentiment in the marketplace right now, today's selloff may actually have a silver lining. First of all, breadth was far from bearish with the Nasdaq posting a slim (in comparative terms) 16-24 margin and the NYSE actually recording a positive 19-11 margin in favor of the buyers. Additionally, new highs to new lows remain positive to flat. Tomorrow's session for the Nasdaq will go a long way toward defining the outlook for this market in the short-term. As it stands right now, the markets look to have blown off some steam and little more. On the blue-chip front, the Dow Jones Industrial Average, which was up as much as 260 points this morning, embarked on a spooky profit-taking session, leading the index lower by mid afternoon. By the end of the day, the key index had pared all of its gains and instead lowered itself 53 points with the help of blues IBM {IBM}, Merck {MRK}, and General Electric {GE}. The most bullish of the declines came via the broader New York Composite index, as the Big Board fell 9 points on record volume of 1.2 billion shares. However, besides the aforementioned breadth disparity which keeps a bullish appearance, up volume still managed a flat state against down volume and new highs clobbered new lows by a 169 to 33 margin. Investors appear to have soured on the idea of the Dow reaching 11,000 too fast and the broader market following suit. A profit-taking session of this ilk has long been needed to keep some rationality to the system. Leading the NYSE today in terms of volume was America Online {AOL}, off 24 points on 51 million shares traded, Charles Schwab {SCH}, off 15 13/16 on 9 million, and AT&T {T}, off 2 points on 9.5 million. Auto stocks, oil concerns, and basic materials largely ignored the selling. Of course, as is the case with most equity crashes, bond traders reaped the rewards by bidding up the bond market as weary stock traders sought the safe-haven. Enough capital poured into the fixed-income market on Monday to ignite the 30-year 22/32 of a point higher, driving the yield lower to 5.52%.