Overheard On The Street

  • March 13, 2001
  • Daniel Beighley

Here’s what they’re saying at
mid-day:

Peter
Eliades, President, StockMarketCycles.com: “You can still count
me in as being a bear although we are starting to see some signs that signal a
capitulation that could lead to some kind of market rally, perhaps even a strong
one. The Arbs index yesterday was up to 3.42 according to my calculations, and
that’s a really high number. It’s not surprising to see markets reach some kind
of bottom around those levels. Sometimes they are important bottoms, but I don’t
think this one is going to be an important one. I have a projection, which is a
technique that I use for getting cycle projections on different indices, and my
projection for the S&P 500 cash index that is down to just below the 1000
level at about 950 plus or minus around 100 points. So I would not be a very
interested buyer in the markets until we got down to at least that 1000 level on
the S&P.”

Frank Gretz,
Market Analyst, Shields & Co.: “Regarding
the Internet,
we’ve just found out, isn’t so special after all.
It’s just another business subject to the economy, no different really
than venerable, and vulnerable, companies like NY Times and Dow Jones.
The Internet isn’t really something new, it’s just another way of
doing old business. 
And when it comes to B2B, as someone so profoundly put it, the Internet
is to profits what the great meteor was to the dinosaur. 
One man’s savings is another man’s profit.”

Paul
Rabbitt, President, RabbittAnalytics.com: “One mistake commonly
made is to be early in a plunging sector that starts to look like a good value.
This has started occurring in technology where stocks have plummeted far
enough to start appearing on value radar screens.
Don’t be fooled. With earnings
estimates still falling at 1% per day and with strong down-momentum, it is not
the time to overload technology.

“Don’t
be afraid to make a few economic recovery bets. 
While we have not officially suggested large bets in manufacturing, this
sector moves higher far ahead of earnings recovery. 
The Fed is moving firmly to stimulate the economy. 
They are mainly concerned with the risk of recession.”