Overheard On The Street
Here’s what they’re saying at mid-day:
John Roque, Vice President, Arnhold and
S. Bleichroeder: “With yesterday’s intraday low of 2070.03, Nasdaq got
pretty close to our downside target of 2050. Some said that’s close enough for
government work and so ‘you’ve got to buy them here because your target was
essentially hit.’ Hold on a second — You mean you go from bearish to bullish on
a dime? In this environment? Coming close to or hitting a target doesn’t
necessarily mean that item (in this case the Nasdaq) reverses quickly. Rather,
should our 2050 target hold we expect there will be a transition phase — a
period of sideways action which will involve a retest. That’s where we’ll feel
more comfortable picking stocks. Gutless? Maybe. But it’ll take more than a
one-day reversal to convince us to get aggressive on the long side.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Equity funds saw outflows of $309
million last week. The majority came from Large Cap Growth and Technology Funds.
Money market funds saw outflows of $5.5 billion last week which were the first
weekly outflows this year. The outflows from Growth Funds mirror the broader
stock market trends, and we believe that the correlation of outflows from equity
and money market funds during the same week is providing just another
ambiguous data point to an already confused marketplace.”