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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: musea who wrote (23609)	5/7/1999 6:40:00 AM
From: William Hunt	Respond to of 27012

Thread --- Good Morning ---from Briefing.com--- Sector's inability to follow through on Wednesday's late recovery rally suggested that techs will spend more time backing and filling over the near-term... Two developments killed chances for continued gains... First, inflation fears sent lond-bond rates above 5.75% on there way to 5.80%... Second, Net stocks caved... The latter resulted, in part, from the former, as investors hesitate to pay big premiums for growth when rates are on the rise... Given that Internet stocks have become a barometer of sector sentiment, once Net stocks began to fold rest of the tech sector followed suit. With little to no earnings news on the horizon to generate excitement, techs remain vulnerable to swings in the bond market... Fortunately, Briefing.com contends that bond yields overstate inflationary pressures... As such, yields should start easing back any day now and when they do, techs should see some renewed buying interest... Watch today's employment report for directional clues on rates... For Briefing.com's take on the jobs report, see our Economic Calendar. Technically, many of the leadership stocks are at, or just below, their 50-day moving averages... However, not one of the big names have taken out their more important 200-day moving averages... Consequently, the pullback still must be viewed as nothing more than a healthy, normal correction... As hard as it is to accept, techs can't go up every day - not even Internet stocks... But as long as breadth remains decent and long-term uptrends remain intact, the sector will reclaim its leadership role in the not too distant future... Remember, while much of the market is struggling to grow earnings, tech sector enjoyed a great first quarter and the second quarter shaping up to be even stronger... And in the end, it's all about earnings growth. Just thought it might help as Frank says to keep things in perspective BEST WISHES BILL