Overheard On The Street
John Roque,
vice president and technical analyst, Arnhold and S. Bleichroeder Inc.: It’s
interesting how Tuesday the Nasdaq came off right at the confluence of its 50-
and 200-day moving averages. If there’s going to be a pullback, it’s probably
going to be around here, but even if it’s not, I don’t think there’s a lot of
upside here. This is primarily because there are other things to look at in the
market. That’s evident in the continued, steady, improvement of the performance
of the cumulative breadth line of the NYSE. It’s sort of like your grandfather’s
market, not your son’s. Utilities still look good and I still think oil service
stocks are going to work on the upside.”
Barry Hyman,
senior market strategist, Ehrenkrantz, King, Nussbaum: Our forecast in March was
that the best chance for a bigger, broader tech rally would be in the second
half of the year. And we haven’t changed that forecast at all. Last Thursday’s
intraday turnaround was the type of day you wanted to see. But it’s only one
piece of the puzzle. This is usually a tough period of time anyway, the
August-September period. I think you’re going to get a primary low during this
August month. It’s critical that Cisco’s maintenance of that 60 level hold. I
think that’s what saved the market last Thursday. We’ve lost the .com world,
we’ve lost telecom, we’ve lost chips in most cases. We’re constantly looking at
the selloffs to buy…looking at these big drops in the market and not saying
“we’re entering another bear phase,” but taking advantage of those to
buy and then sell into the rallies.
Â