Nasdaq kept tumbling….


Experienced member
Nasdaq lost another 65 points (3%) to 2,117 as software maker Oracle, regional phone company SBC Communications, and retailer Gap all stated slowing demand for their products hurting quarterly earnings…thus putting more pressure on the Nasdaq…and making Bob Smith, fund manager at T. Rowe Price say, "in tech land, business is pretty bad.."

Nasdaq was falling as much as 92 points before briefly visiting the positive territories and falling back again…still Nasdaq winners topped losers 1,884 to 1,713 as 2.3 billion shares changed hands….

One positive spot was Alan Greenspan, testifying to a House committee on fiscal matters, saying inflation is "well contained" and repeating his support for tax cuts, which could stimulate growth in a fast-weakening economy…BUT he said it's difficult to assess the long-run impact of a weaker stock market on the budget picture…

So is the Oracle’s profit warning the end of the bad news?

"I think we're getting close to having all the bad news out," said John Waterman managing director of investments at Rittenhouse Financial adding "You need some good news to get the market going as opposed to just short-term rallies," still saying "We likely won't see the hard numbers on the economy and earnings to really turn [sentiment around] till the second quarter…"

Is Nasdaq oversold and enable to start an uptrend now?

Yes and No according to Clark Yingst, market strategist at Prudential Securities who said “while the Nasdaq is obviously deeply oversold, its inability to hold on to rallies of late has been disturbing…”

Salomon Smith Barney's Louise Yamada also seems to be having a similar opinion, "With continued oversold readings, we would prefer to see more in the way of stabilization, or signs of accumulation…" but she indicated that she favors selling on any rallies into resistance…

Well as it’s week end and we really do need some rest after following such difficult to handle markets, I’ll keep analysts quotations short today…

Over all as I keep saying the best we can hope for is a sideways Nasdaq with bounces up and down..only the down ones being bigger than the up other words still forming lower lows and lower highs…nothing suggesting it’s ok to hold shares for a long time yet…as there is no visibible bottom yet…the turn round can start on any point making it the bottom for Nasdaq..with this market sentiment it’s a waste to guess the bottom…being aware of the sentiment is much more useful…

Ohh and before I finish, I’d better say there are two things that might provide some relaxation next week: No major companies reporting quarterly earnings (thanks God) and the only significant economic data is the March jobs report which is on Friday the last trading day…

Have a nice week end…