The Nasdaq dropped 178 points (7.1%) to 2332...thus falling through a seventh-consecutive session and finishing at its lowest level since March 23, 1999..as earnings fear mounted and Merrill Lynch made negative calls on Cisco Systems, IBM and Hewlett-Packard...investors seemed worried about the Federal Reserve's decision to leave interest rates unchanged...since it could be interpreted as trouble for the economy...
Investors as well as analysts seem divided as to how to interpret the Fed decision of leaving interest rates unchanged...(just as it took their lawyers to decide about the elections results, hand counting, etc..)
Todd Clark, head of listed trading at WR Hambrecht said, "I do think it's good news...But I think it is part of an overall psychology that the market is taking everything as bad news. I think we may be able to work our way through and eventually see it as good news."
While Alan Ackerman, executive vice president and market strategist at Fahnestock said, "There is a growing sentiment on the Street that [Fed Chairman] Alan Greenspan is playing tough guy with the U.S. economy..."
As a result, in the tech sector, the bears were particularly aggressive in the Internet, hardware and networking segments..
Bill Schneider, head of block trading at UBS Warburg said, "Earnings are disappointing and until there's some stabilization, the buyers see no need to step in and make their move. And unwinding of leverages positions and tax selling [is exacerbating] the situation.."
Some analysts started talking about Nasdaq testing 2,100..."There's a good possibility we'll test 2,100 on the Nasdaq. We probably need to see another washout day on high volume followed by a basing process that could last for months.." saidd Louis Parks, senior managing director at Raymond James...
Tom Peterson, publisher of the newsletter Bulls Eye Research said, "Any low made in the next few days, no matter how good it looks, will have to be tested. That also means there's no need to be a hero and try to pick the absolute bottom.."
Exactly right..no need to be heroes..and I don't intend to be one..but as a result of the points I raised in my other thread I have a feeling that tomorrow morning we'll see Nasdaq futures in blue and not in red..
(quotaions from WSJ and CBS.MarketWatch)
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Investors as well as analysts seem divided as to how to interpret the Fed decision of leaving interest rates unchanged...(just as it took their lawyers to decide about the elections results, hand counting, etc..)
Todd Clark, head of listed trading at WR Hambrecht said, "I do think it's good news...But I think it is part of an overall psychology that the market is taking everything as bad news. I think we may be able to work our way through and eventually see it as good news."
While Alan Ackerman, executive vice president and market strategist at Fahnestock said, "There is a growing sentiment on the Street that [Fed Chairman] Alan Greenspan is playing tough guy with the U.S. economy..."
As a result, in the tech sector, the bears were particularly aggressive in the Internet, hardware and networking segments..
Bill Schneider, head of block trading at UBS Warburg said, "Earnings are disappointing and until there's some stabilization, the buyers see no need to step in and make their move. And unwinding of leverages positions and tax selling [is exacerbating] the situation.."
Some analysts started talking about Nasdaq testing 2,100..."There's a good possibility we'll test 2,100 on the Nasdaq. We probably need to see another washout day on high volume followed by a basing process that could last for months.." saidd Louis Parks, senior managing director at Raymond James...
Tom Peterson, publisher of the newsletter Bulls Eye Research said, "Any low made in the next few days, no matter how good it looks, will have to be tested. That also means there's no need to be a hero and try to pick the absolute bottom.."
Exactly right..no need to be heroes..and I don't intend to be one..but as a result of the points I raised in my other thread I have a feeling that tomorrow morning we'll see Nasdaq futures in blue and not in red..
(quotaions from WSJ and CBS.MarketWatch)
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