Nasdaq’s impressive bounce back to +ve…

Riz

Experienced member
1,266 5
Nasdaq recouped its deep losses and managed to end up in positive territories by staging a strong recovery in late trade today…earlier it had been again pressurised by profit warnings and continued negative sentiment….

IBM halted its fall and closed up more than 6 per cent at $106.05…thus helping the Dow to recoup most its losses…

Late trade recovery enabled the Nasdaq to put aside the doom and gloom coming with another round of jobs cut announcements … climbing chip and software stocks acted the best role in Nasdaq’s turnaround…

The Nasdaq Composite ended the day up +31.54 (1.5%) to 2,183.37 after falling as much as -80 intraday…counting for a big rebounce of 111 points…worth to take it seriously…volume was 2.25 billion with decliners outpacing advancers by 22 to 16.

Barry Hyman, chief strategist at Weatherly Securities already started recommending tech stocks: “If you've been underweight in tech, this is an excellent time to start adding to positions.."

John Forelli, senior vice president and portfolio manager at Independence Investment Associates was not less optimistic at all, “Market sentiment is painfully ugly, but we might be at an inflection point. If you believe Alan Greenspan, it's time to get out the shopping list. Nobody's listening, but he's telling us that the worst may be behind us. That means some quality companies are on sale --if you dare jump back in…"

John Blough, president and founder of Bond Watch was also pointing out the best buying opportunities in 10 years, “The Dow and S&P have held up fairly well but the Nasdaq is very washed out at this point… the trading opportunities in technology stocks over the short term will be plentiful… Near term, it's hard to make the leap. The next economic reports probably won't be cheery, any earnings reports probably will be lousy. So where's the hope? In Greenspan we trust. I'm expecting the Fed to cut rates by 50 basis points at the end of the month and then another 50 basis points per meeting until June.”

Miller Tabak's Tony Crescenzi was noting the significantly reduced margin debt in the stock market since March 2000, also indicating that the Fed has been successful in wringing out the speculative excesses that previously existed in the marketplace…"With financial leverage significantly reduced, recent problems in the stock market are now less likely to snowball and are more likely to be reflective of excessive pessimism than of the unwinding of financial leverage," he said.

Are the stocks cheap now? Yes according to Ned Riley, chief market strategist at State Street Global Advisors who said the year-long sell-off has created some great values in tech stocks… "The stocks in my judgment are very, very cheap," he told CNNfn.

Well overall not a bad day I’d say…after witnessing the Nasdaq and its UK tech satellites bleeding non-stop for some time…today’s turn around is not so important for indicating the start of a rally, because it does not…but it’s important for it might be indicating we’re not heading into a full-scale longer-term bear market and/or a total crash…

So although more hopeful than yesterday, we still need to be over-cautious I’d say..let’s see what tomorrow, the last trade of the week brings…I’ll be still in favour of intra hour/day trades…

rizgar


[Edited by rizgar on 01-03-2001 at 11:14 PM]
 

Ian56

Junior member
32 0
Oracle profit warning after the close puts paid to rally.
Dow and Nas futures down.

Regards,
Ian
 

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