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: American Spirit who wrote (12658)	5/2/1999 10:41:00 PM
From: Casaubon	Read Replies (2) \| Respond to of 99985

I'm thinking about trying the sector thingy. I'm interested in the DRG index. What exactly is available that I could purchase to try this play? Also, I was thinking about hedging this play by purchasing MRK puts. Any comments are most appreciated.

To: American Spirit who wrote (12658)	5/3/1999 4:46:00 AM
From: donald sew	Read Replies (3) \| Respond to of 99985

American Spirit, What you say does make sense if nothing changes, however you do not mention interest rates. For now I believe 5.60% as the pivot point, where the higher we get above that point the more negative the market gets, and vice-versa. If the cyclicals are the safe haven since they are on the mend, that is inflationary down the road. On the issue of money flow, and this is only a guess - if Japan and other countries are really improving then money could be flowing back to those areas. Their money and domestic money. Here is something i am pondering, and Im not sure of. Japan's bear market started around 1990, where their market was at 40,000 and recently got as low as 13,000, but at the same time the U.S. market was roaring especially from 1994. How much money came from JAPAN and other weaker economies into the U.S. bond and stock market during that period. Now that they may have bottomed they need money to rebuild their economy, so how much of what they put in during the 90's will flow back. Prior to that, in the 70's when their auto industry/electronic industry was taking business away from us, the U.S. economy was staggering and we had a bear market, while they were chugging along. And its not just Japan. Is there a inverse relation with their/other weak economies with the U.S., where when they are weak we are strong, but if they become strong again ?????? seeya

To: American Spirit who wrote (12658)	5/3/1999 12:13:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

If they can continue this rotation for another 4 to 8 weeks while the techs consolidate, the tech leaders should have another run coming up to their second quarter reporting period. The anchor between the two has been the financial stocks. AXP, C, GE, and JPM have charts that have mirrored the Dow. And to a lesser extent, WMT. (Among Dow retail stocks, S had a nice pop today --- last week, it made the Small Dogs of the Dow list). Interest rates will tell the story for now.