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Another opinion - this excerpt from today's TheStreet.com midday update
email:
By Aaron L. Task
Senior Writer
7/27/00 8:49 PM ET
SAN FRANCISCO -- When Richard Williams, market analyst at Jefferies,
came out bearish on the Nasdaq Composite July 19, the call proved to be
a day early but not a dollar short. In fact, being short woulda' been
the right move.
Thursday morning, Williams emailed with the observation that "the
Nasdaq appears to be approaching a short-term bottom," in the 3820 to
3840 range. That call looked eerily spot-on as the day unfurled -- the
index tumbled as low as 3841.62 before closing off 3.7% at 3842.25.
In the wake of the decline, the analyst forecast the index could begin
a rebound as early as Friday, ultimately rising to as high as 4050 in
the next few trading days. But he also believes traders would be best
served to use that presumptive advance to "lighten up" or establish
shorts. It will prove to be "a temporary respite before further
downside," he said.
Williams reiterated his call for weakness over the next four to eight
weeks, one that takes the Comp as low as 3335, or down another 13% from
Thursday's close. He sees a similar, although less bearish, pattern for
the S&P 500, suggesting the index will also rally from Thursday's close
of 1449.62 but soon test support around 1400.
Looking out a bit further, the analyst forecast the market will enjoy a
"Fed-induced" rally beginning in late August and continuing through the
election in November, but will suffer another "big correction" shortly
thereafter.
Elsewhere, Williams sees the Philadelphia Oil Service Index as having
run into resistance at around 115 and recommends shorting the index
with a 120 stop and 92 target.
As always, you're free to follow, ignore or bet against the sources
mentioned in this column (at your own risk, of course). Just wanted to
pass along the latest from a guy who seems to have the "hot hand" these
days.
---
JW
-----Original Message-----
>I would be a buyer at today's low
>qqq should visit intra day hi of 96-98 in 2-4 buss days
>THEN short to 80
Thanks Ben... almost every technical analyst is looking for the same 2-4 day
rally. Cause for concern as far as I am concerned. I am more interested in
seeing how far down they can take CSCO INTC SUNW.
<snip>
Gitanshu
DISC: Long PEP Neutral INTC.
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