and mostly will go much lower in the weeks to
come. The most influential companies in the market
(INTC, MSFT, IBM, PFE, C, AOL) are done with their good
news/bad news gig so it is time for the market to focus on
the upcoming FOMC Nov. meeting. This thinking plus
Uncle Louie's Y2K warning will pressure tech stocks
(the outperformers so far this year) till year's end.
The market is pretty much void of safe havens if you
put the FED and Y2K today so I doubt we will see any
quick rebounds in the market in the intermediate future
(the market condition with this 99 correction is very
different from the 98/97 crashes, so be careful out there).
I see more selling into the early part of the
session on the part of the fear mongers and a close
around $98 to $100. Good luck longs - (HWP'er here) we
got our own problems and with this news it ain't
lookin pretty for a while.
Looking at IBM's latest bid at 94 and change off
$18 makes prudent risk management of utmost import.
Since IBM exceeded my rosiest forcast I was able to
cash out of my Nov 110 calls at 7 yesterday but
consider this lucky rather than prudent. I was unsure of
the earnings and retreated to safety. Off of todays
action it looks like buying puts as this stock rallies
to 103 would work. More on this at a later
For the adventurous (myself included), Nov 100 calls
at 1 3/8 on the open seem like a good position. Any
down draft from 94 to 87 would give this order a
chance to fill.
NASDAQ has had a rally which
fell 12 points short of the 2800 objective that I was
looking for. The rally was puny off of the lows, and
argues further for the Bears to take this short term
overbought market down. Filling the gap at 2725 and holding
would keep the recent upmove intact. Failing at this
level would be ominous.
Have a good day and
remember to manage your risk.