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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 (20907)	5/6/1999 10:38:00 AM
From: dennis michael patterson	Read Replies (2) \| Respond to of 42787

ATHM is strong.

To: dennis michael patterson who wrote (20907)	5/6/1999 12:17:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

CSCO has been a relatively weak stock and has demonstrated this by being the first to sell off. EBAY on the other hand was the last to sell off and the first to rebound. Two different type of stocks. EBAY has been showing strength over a period of time. I imagine you chose both AMZN and CSCO in an attempt to "diversify" your trades, where you chose one Internet service stock like ATHM and one that is not an Internet service stock like CSCO but related as a hardware vendor. ATHM is demonstrating good strength. It appears that the DJIA is still moving with the long bond, albeit with some delay. All indices also appear to be moving together. The long bond is making new highs in interest rate. There also was a move out of the market by monies during the last sell off including yet another time for the tech leadership. A pattern has been demonstrated of money moving out of the tech leadership including the Internets. Signs of inflation showing up in the commodities. Not a good picture that is forming. Recent history showed earnings disappointments from key companies,and subsequent and continued sell offs. Look at MSFT and YHOO as examples of continued selling. INTC even has seen the down side of this more than once. We even saw GE go through the floor recently. Move of money into the cyclicals, out of cyclicals to the techs, out of techs to the cyclicals, and then out of the market. Volatility with much money still resting on the sidelines having not been committed to this rally. No wonder the market is nervous going from one economic news items to the next. Some sense of reality has set in now. By next week we will see if the market validates its upward bias by moving out of these darkening skies that it has placed itself under. I think we are now seeing the results of the technical damage that has been done to the market in its leadership. NASDAQ and its tech leadership has not been very responsive to the bottom that has been put in. Today's intraday move up by the market was lead by the wrong industry groups. The financial, retail and energy stocks are some of the worst performing groups right now. Some cyclicals with gold are performing. This situation may resolve itself to the upside, but right now it is tentative at best. We have seen no follow through. Here is a thought. Money first began to move out of the preferred stocks. Then we see a large amount taken out of money markets which did not go into stocks or bonds. Then we see money moving out of bonds. Next we see money moving out of the stock market. I wonder if foreign money is responsible for this? I think it was well timed as far as the DJIA index was concerned. And look at one of the favorites by foreign investors who are generally more conservative, GE. Just some thoughts. Bob Graham PS: An additional thought. I first saw marked congestion patterns show up with some the Internets. Now I am seeing this with other stocks including the indices. Interesting.