Christmas Cheer for Nasdaq...


Experienced member
The Nasdaq was in Xmas mood shooting up with most techs... the Internet, computer hardware, software and chip segments were the focus of aggressive buyers...

The Nasdaq Composite jumped 176.90 points (7.6%) to 2,517.02 .... the Nasdaq 100 jumped even higher,211.42 points (9.5%) to 2,436.26.... a heavy volume of 2.24 billion was recorded on the Nasdaq Stock Market...

Some of the Nasdaq's heavyweights that were cursed earlier this week suddenly became the apple of the investors’ eye... Cisco Systems climbed 6.8 percent, Sun Micro piled on 18.3 percent, Qualcomm 12.1 percent, Applied Materials 9.2 percent, and Oracle 8.1 percent.....

Amazing...the only question is whether this festive rally continue next week and into the new year...well let’s hear out some analysts prepared to listen to the change of tune as stated in my “Today is the beginning or the end? “ thread:

John Hughes, market analyst at Shields & Co.: "I think we got a lot of selling out of the way with Wednesday's decline. The selling [in the aftermath of the Fed meeting] caught many off guard.." ..

Scott Bleier, chief investment strategist at Prime Charter: "The institutional panic to take losses has ended. They sold their most liquid names to balance the profits they took early in the year. The earthquake appears to be over and we're left with the aftershocks...Amid the unwinding of the bubble in tech sector that has taken place over the past nine months, the bifurcation between the Nasdaq and the broader market has corrected....We've corrected the excesses."

James Meyer, director of research at Janney Montgomery Scott: “Wall Street finally received a belated dose of the seasonal strength usually seen in December.... Historically, I don't remember in the worst of times that we didn't have some sort of a year-end rally, no matter how long or short it might turn out to be.. I would not be shocked to see a lot of earnings confessions next week as people have a pretty good handle on how poorly the Christmas season has been.....What is uncertain is how much of this is priced into the market."

Michael Lyons, a senior trader at Morgan Stanley: “tech stocks remain at attractive levels, and the market may
have seen the worst for now....The Nasdaq composite closed at its lowest level since March 1999 on Wednesday, and remains down 50% from its March 10 high....A lot of investors are now looking at next year and have compiled a shopping list, and are doing selective bargain hunting.."

Janney Montgomery Scott's Mr. Meyer : "I don't think we yet have a picture about how bad the economy is going to be.... I think this market over the next few months is going to be marked by some very emotional rallies and some doses of reality as we try to figure out what is going on with the economy."

As usual, some optimistic..some pessimistic and some just it’s up to us to interpet the signals and establish where the markets might head for from here on... Has the institutional panic to take losses ended? We have witnessed these "one-day jumps" many times over the past months and have been disappointed when a new sell off started one or two days later, could this one be any different? Has Wendesday’s decline put a lot of selling out of the way? Are the tech stocks oversold? and many more similar questions have to be answered,before referring to a well founded uptrend, but my personal opinion is that we’ve got enough signals to think that last Thursday was the end of the crash (see “Today is the beginning or the end? “ thread)...still I have to say that this doesn’t mean we’ve got a hot rally ahead of us...that’s not on the agenda yet I am afraid...all we may see from now on is best bounces (up and down) and sideways movements based on the current floor of the indexes for a while...this of course is much better than non-stop downwards market movements and the doom and gloom atmosphere...

Anyway don’t think about those questions before enjoying the Xmas turkey surrounded by family and friends (they always come first after all)...we’ll have enough time to ponder on the markets later....

Best wishes and MERRY CHRISTMAS EVERYONE!!!!!!!!


[This message has been edited by rizgar (edited 23-12-2000).]