Overheard On The Street
Here’s what they’re saying at mid-day:
Ricky Harrington, Technical Analyst,
Wachovia Securities: “The big surprise in my mind is how the shift away
from tech stocks has had the effect of money flowing into the Dow. We’ve seen
the Dow move up very sharply from 9600 for an almost 800 point rally over the
last week or so as technology remains under pressure. This is similar to what
we’ve seen over the last 12 months or so.
But I think we’re getting to a very
oversold condition right here, so I’m looking for some kind of temporary bottom
in this market within the next week or 10 days.
“I think we’re in a bear market,
and when the rally comes it will be extremely selective, however, it may be
concentrated in the stocks that have really been beaten down. There are
technology stocks undoubtedly that have built up big short positions, and if you
get a rally, that’s where the shorts will be squeezed.”
Harry Laubscher, Market Analyst, Tucker
Anthony: “Of course, Nortel is having a big impact on the technology
stocks. It was anticipated earlier that if we were going to be going up by year
end, that technology stocks should at least be providing some leadership,
however, I’m getting to think more and more that the Dow-type stocks might do
better than the technology stocks and sort of tug them along. Remember, though,
that a lot of this stuff going on right now is institutional selling taking
their tax losses. That will be out of the way by Tuesday, so once that is out of
the way, I would expect to see these things act better.”
John Roque, Vice President, Arnhold and
S. Bleichroeder: “Funny, it’s awfully balmy outside, yet it feels like the
winter of our discontent. Now add Nortel to the list as the disappointment over
formerly blue chip stocks grows. Ain’t this aggravating? What worked yesterday
is likely not to work today. If this is the process from which bottoms are
carved or formed then you can have it. As one of our clients remarked, he feels
like a hero when he’s right for twenty minutes.”