Overheard On The Street
Here’s what they’re saying at mid-day:
Ricky Harrington, Technical Analyst,
Wachovia Securities: “First of all, the market has two major factors on its
side right now. One is that we have had a tremendous selloff in recent months,
so the selloff has probably factored in and discounted a number of negatives.
That’s why first earnings reports appear to already have been discounted. The
fact that the market has discounted a number of negatives is a positive.
Offsetting those positives, however, is the fact that we still have over
valuation from a historical standpoint, and sentiment has not gravitated to the
level or degree that you normally would see at major market bottoms.”
Bernadette Murphy, Chief Market Analyst,
Kimelman & Baird: “The Dow Industrials rallied into a level where there
is a lot of supply. Remember a few months back when we were talking about the
10,300 level, and we broke below that level. That was the lower part of a broad
resistance area for the market, which stands from 10,500 to 10,700, and we
traded right into that because the move was so dramatic. When you compare that
with the Nasdaq market, the Nasdaq has supply around 2200, but its not major.
The Nasdaq doesn’t really run into more meaningful supply area until 2500.”
John Roque, Vice President, Arnhold and
S. Bleichroeder: “We’re not getting more aggressive because most bottoms
since 1957 involve a retest of some sort like a move above the 50-day moving
average and then a correction beneath the 50-day moving average. The pattern of
the DJIA does not make us confident that a new high is in the offing. The Dow
blew through resistance at 10,200/10,300 following the Fed’s activity and we’ve
raised our potential upside target to 11,000, but there’s tons of resistance up
to 11,000 and we believe it will be turned away there.”