Overheard On The Street
Here’s what they’re saying at mid-day:
Gregg Parise, General Partner, Dorado
Capital Management: “I actually like today’s market action. I think we got
some news that was extraneous to our economy and markets which caused the
selloff. I think we still haven’t quite reached buy-side capitulation. I think
you’ve seen sell-side capitulation over the last two months as far as the
analysts throwing in the towel at the absolute bottom which typically is a good
sign. I’m pretty much looking for one more down leg here, a good washout, and
the difficulty here is measuring whether it comes this week in front of the Fed.
“That’s really one of those things that’s buoyed this markets as much as
it has, and everyone knows the Fed is coming on Tuesday or Wednesday of next
week. So, I think we’re close. I think this is all good action in really kind of
putting in a final bottom here at which point we can see the ability to put some
money to work. For me, my levels are about 1850 on the Composite, 1120 on the
S&P, and I’m looking for about 9700 on the Dow. So we still have some work
to go, but it’s good work.”
John Roque, Vice President, Arnhold and
S. Bleichroeder: “Seems to us that the latest sell-side mantra making the
rounds is that there is a ‘stealth’ bull market going on because cumulative
breadth on the NYSE has been strong. The stealth bull case is that cumulative
breadth, which is the daily difference between advancing stocks and declining
stocks over time, has been trending upward since its Oct. 18, 2000 low.
“Definitionally, rising breadth means more stocks are advancing than
declining, and though we may not recognize it, the upward trending cumulative
breadth line says there is a ‘stealth’ bull market going on, particularly on the
NYSE and despite the continued hemorrhaging in Nasdaq. We believe this is as
good a time as any to add the ‘stealth’ bull market mantra to our previously
listed grouping of failing mantras because if there is a ‘stealth’ bull market,
then why aren’t more long only funds making money?”