Overheard On The Street
Here’s what they’re saying at mid-day:
Ricky Harrington, Technical Analyst,
Wachovia Securities: “In reference to time, I think we are very close to a
significant rally, but I think in the very short term there is still a
possibility for a move back to the downside. My target on the Nasdaq has been
2500 to 2700. That’s based on a couple of factors. One, I think that what we are
seeing is almost a replay of what happened in Japan in 1990, but more to the
point, I think it may take a move to 2500 to 2700 to create a situation where
sentiment is negative enough to substantiate a decent rally.
“My target is still a possibility of 2500 to 2700, and if we see that,
it’s probably going to occur within the next week or two. From that point, I’m
still looking for about a two-month rally, a year-end rally. I still think we
can get one, but I don’t think we’re quite ready for it to begin at this point.
Looking at the big picture, I still think we have been in a bear market for a
couple of years, and I think it’s going to continue into 2001. Despite the fact
the Nasdaq especially is down 40% for the year, valuations continue to be very
high.”
Barry Berman, Managing Director of Equity
Trading: “The market was oversold. We finally have a Fed meeting, and I
think you have some short covering and bargain hunting going on. I don’t think
it’s much beyond that. I really don’t believe that the political thing is that
big of an issue. It might be a short-term excuse, but the market is doing what
it’s doing because of lower earnings and lower revenues. Prices are adjusting to
that, and I don’t know when that process is going to be over. It started with
third-quarter shortfalls, which kind of spilled over into the fourth quarter,
and now you’re looking at lowered projections for next year coming from
different companies. Right now, you’ve just got the market adjusting to
that.”