From an interest rate standpoint, it's negative. On the other end, if the economy stays strong, corporate earnings will stay strong. |
Futures are pointing up a little bit. I think we will see a typical August Friday: Low volume and no economic data. I think we will see some winding and grinding for most of the day. |
General market sentiment remains quite positive, ... Of course, oil could be a spoiler if it moves higher. |
He might fine tune his testimony (of last week) and that could help the markets. |
Here is a classical story of a stock that is trading under book value. AT&T, the same thing. I believe it is up 4 or 5 points from its low and basically trying to stabilize at these levels, when it is all said and done, it still probably will be the leader of the pack. Again, a company selling under book value, |
I believe the worst of the decline in the 'old economy' stocks is over, ... and I think what we're seeing here is a consolidation phase, even though this consolidation phase is probably taking place at the lower end of the trading range. I don't believe that yesterday's decline in Nasdaq is the beginning of any major correction just yet. Now, that is not to say that we're not going to have a correction. Indeed, we are. But I just believe that there is sufficient money out there and sufficient demand for these tech stocks yet, and that is not going to disappear so quickly. What we saw yesterday was little profit-taking after a spectacular week. |
I do not buy this theory that, you know, the market is going to continue to move higher without the participation of the smaller cap stocks. It's just not in the cards. |
I don't think the correction is over. I think we can get as low as 8,250 before we see stabilization on the market, and then I think we will begin to climb. |
I don't think we're close to a bottom yet. There's just an absence of buyers, and as a result the market continues to work itself lower. But having said that, when it stages a turnaround, it will be quick, vivacious and violent. |
I expect they will stay the line, although the possibility of going from a neutral to a tightening bias has increased. |
I just think they're very cheap. There's no core news for this to happen -- I just think a lot of these stocks have been badly beaten down and investors are starting to get around to looking at them. |
I like American Telephone at 45 and 50, |
I like stocks that have potential earnings possibilities. Those are the ones that could someday be market leaders. |
I still expect the third quarter to be respectable but that's a thing of the past. But what happens in the fourth quarter (is the question). |
I suspect over the next session or two, we could see more selling, as investors await all the economic news due next week, |