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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (26198)	5/12/1999 9:28:00 PM
From: broken_cookie	Read Replies (1) \| Respond to of 50167

And CSCO's conference call was awesome. Congrats on your calls.

To: Jerry Olson who wrote (26198)	5/13/1999 2:59:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

OJ…..It was one of those strangest things, I wrote about this test of 1328 and a rebound from that, that was my gut feeling and I based my reading on a strong CPI and PPI, little did I realize that Ruben's resignation would have a similar impact, a fall to 1328 and rebound to 1368 in a single session... I wrote this in today's morning post.. <<We will have one soon, and most probably we will make the best of it which ever side it comes for me ideally it would be a visit to 2520 area again that is closing the gap on COMP and may be 1328 on SPM after that a bounce. I see this gap at 2520-2546 area with concern this would require filling, and I think we will see that within this move. I would think a bond yield at 5.85 will give us clear indication to short the market if you see that, so will be the reversal at 1328 or 2515-20 band or a bounce off 625-628 to close above 660 in a single session. >> Although the gap in comp never really got filled but we printed 2548 and on DOT we were unable to rally. I am looking at these charts of leaders I can see some good movements in most of my core holdings and that is a very good positive sign after a lot of neglect I can see run in EMC TXN INTC SUNW and some of my favorite stocks, now with most of the indexes sitting at highs and 2555 taken out decisively I would expect that we will be testing new highs on COMP if today we get a number in line with the market expectations. clearstation.com I have been looking at the basic cause of bond jitters and I can only identify one that is GDP deflator which came aparently higher than last year fourth quarter. It was reported at 1.4 against .8, however a little closer look at it suggests that.. First union economist explains it nicely here.. <<The bond market sold off on the stronger GDP report. In addition to a stronger headline number (the markets were expecting 3.6% growth), market participants were concerned that the GDP deflator picked up from a 0.8% pace in the fourth quarter to a 1.4% pace in the first quarter. The Commerce Department reported that much of the acceleration was due to cost-of-living adjustments for government workers. The GDP data treat salaries paid to government workers as purchases of services, so the higher pay rates directly raise the deflator. By contrast, the price deflator for gross domestic purchases showed much less of a pick up, rising at a 1.0% annual rate in the first quarter, which was essentially the same as the fourth quarter's 0.9% rise.>> I would think that a dip today is an opportunity to long although one has to closely look at then number. However the basic inflation argument as you may see above has not much basis and this anomaly in interpretation of GDP deflator will soon be priced by the new data.. The problem with these 200 points plus movements on DOW and SPM drop from 1360 area to 1328 is that it runs a lot of stops any one who had order to short at 1330 would have been filled and had to close it not before 1354, that short covering helped a rally to develop that helped SPM to close above 1364. The expected profit taking or preparation for number surprised was diffused with this sharp move, 1328 rebound indicated the underlying strength of the market.. and with Rut quietly moving up to 445 and BKX taking out my 907 alongwith SOX close above 392. I would think we are setting up for a rally here the only barriers are today's number and naturally the trade would be on market rally to long the bond…The market and bond will move in one direction so if you see bond rallying just don't worry long the market.. If bond is breaking don't do anything.. let the bond show you this next direction.. Stocks to look at.. clearstation.com The above list represents the ten companies whose reported earnings today where the most above the analysts' consensus estimate.