Overheard On The Street
Here’s what they’re saying at mid-day:
Michael Lyons, Senior Trader, Morgan
Stanley: “We’re running into some selling here. The retailers and the drugs
are the groups bringing the blue chips down, technology has held on to its
gains. They’re acting very well. They came out of the gate this morning with
some solid gains following some positive comments made by one of the houses.
That brought buyers in and kind of set the tone for the techs. Money is just
coming out of some areas and going into tech. The brokers are acting nicely as
well. There are some good gains there.
“It’s kind of a mixed bag in the Dow. If you take out about four or five
of them, it really wouldn’t be doing too bad. It’s actually a little healthy
after the gains we’ve seen, as long as it doesn’t get away from us here. I don’t
think anyone is too concerned. It’s a short week, so we’re also seeing some
traders flatten out positions ahead of the holiday.”
John Roque, Vice President, Arnhold and
S. Bleichroeder: “We could be wrong, but we don’t believe the DJIA is going
to be able to rally big above 10,200 because there’s a lot of resistance in that
area. The Dow will be running into a downward slopping 50- and 200-day moving
averages. It is from this area that its most recent decline began to pick up
speed.
“Though we are less inclined to believe the Dow can rally big from
current levels, we do believe Nasdaq can do better absolutely and relatively.
Like you, we are aware of the signals that have been around for weeks — extreme
oversold, the very high number of new lows on Mar. 22, Apr. 3 and 4, the volume
reversal days of Apr. 3 and 5, disgusted sentiment, bearish magazine
covers, high TRIN, and high put/calls.”
Gary
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