Overheard On The Street
Here’s what they’re saying at mid-day:
Bob Basel, Head of Listed Trading,
Salomon Smith Barney: “Big volume because of triple witch. Volatility not
related to triple witch because that usually plays out in the middle of the week
to Thursday as opposed to being intraday on Friday. Indecision as to what
Greenspan’s thinking for next week, whether it’s going to be 50 or 75 basis
points. Sellers obviously are having a better day than buyers, but I think it’s
more than a lack of buyers than it is the sellers overpowering buyers.”
Paul Desmond, President, Lowrey’s
Research: “The trick is to stay on the sidelines for a longer-term investor
until you see that the buyers recognize that the bargains that exist at that
point are substantial, and that’s when you see a 90% upside day. We’re not
seeing anything close to that that yet. People are looking for capitulation
here, and almost everybody that comes on CNBC is talking about capitulation.
Capitulation is really two things and not one thing. What they’re looking for is
a heavy selloff as an indication of capitulation. But past bear markets have
shown that that’s only half of the picture. The sellers have to panic and knock
prices down to bargain levels, but the second half is that the buyers have to
come in and grab up those bargains with enthusiasm and sustained demand. You’ve
got to have those buyers come back in and until then, we could move
substantially lower.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Equity funds showed inflows this
week of $1.4 billion, and the majority went into large-cap growth funds. Money
Market outflows showed $2.8 billion moving out of these savings funds. Positive
aspects are that as opposed to two weeks ago, the money market outflows
correlate cleanly with inflows into both equity and fixed income funds. Negative
aspects are that the consistency of outflows from higher growth funds,
especially technology and health care show a continued lack of buying support
for underlying stocks.”