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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (15470)	6/1/1999 6:30:00 PM
From: Vitas	Read Replies (2) \| Respond to of 99985

Heinz, June Birinyi letter: We continue to have a positive view and are still bullish... however...we would just as soon wait to invest. An old adage says sell in May and go away. We wouldn't sell but we wouldn't buy either.... concerned about: the ease with which economists - strategists - analysts and commentators are accepting the latest disturbing economic news general lack of progress in spx we wonder where the next impetus of the market will originate. First quarter earnings are behind us and we won't get any more news on that front until July: the bond market is more likely to be a negative than a positive: summer is vacation time so fiscal and monetary stimulus is unlikely; and many key stocks e.g. Microsoft, GE are doing little or nothing And we are concerned about the key Internet stocks that are off sharply. It is estimated that half the trading on the Internet is in Internet stocks. This means that a lot of those traders have lost a lot of money. Amazon, for example, has lost $17 billion in the last four weeks. If all these individuals are suddenly discovering the realities of the stock market, will they continue to fund their brokerage accounts? In other words,, we are troubled by the loss of wealth among the Internet traders and what repercussions this has elsewhere. Bottom line is that we are suggesting that you stop buying in May and go away. If you have large profits and you are concerned, consider writing calls or buying put options or taking some defensive strategies.