DSC Communications DIGI reversed a -98 eps on good
quarterly report. Also moving into the mid 20's on some
medium volume Friday. My guess is that if this is
indeed a break out, it could signal the beginning
run up of the telecommunications \ cellular segment.
Could that be the "hot sector" that replaces the
diminishing computer\semi sector this year?
===================
These others might fit the CANSLIM long term profile
much better, but may not have momentum:
PCOM
REMMICK
========
I've heard that "momentum" fades very quickly in
volatile up/down conditions as expected in this '97 market.
Opinions?
======================
Though this is "off topic" for classic CANSLIM, thought I'd include this little tag: (you can e*mail me any opinions off topic)
Theory on market (and of course your opinion or comment is encouraged):
**My question: is the peak of IBM, and cascade of CASCADE this week, a bemoaning of the ensuing correction as '87
is eclipsed by big blues unobtainable high?
** Foreign markets were
nervous about bonds early Friday.**
Perhaps labor stats. are tight, and liquidity
has been continually added recently.
Three spikes possible in the market this year?
One near term around Valentine's Day, one around
tax time in April and of course October this year
would be the antithesis of Bullish October of
last year. BUT, stocks
bought ON these spikes yield excellent long term
yields. Theory: unless investors buy on a serious
spikes and horrid news this year, the market will slap profits
out of their hands. The coveted cup and handle will look like a underwear dangling from a closeline after a dalmatian puppy has worked it over.
**ALSO**
I wonder what this educated opinion yields after this year
for maximizing profits?
Respected *Stock Trader's Almanac* author Yale Hirsch predicts Bear markets according to historical election cycle trends as follows:
1. The second term of presidents with years ending with "7" ie '47, 57, '67 and woefully '97 etc. indicates very big Bear news from historic trends. Guess is that yes; a 1,000 point DOW decline in '97 and some milit
ary spats in the Middle East and negative news cycles about Bosnia will perfectly Bear down the market through '97 for a great recovery and upward zoom into the ever spirited millennium year of 2000, kick
ing in gear by '98.
2. This market, he predicts, will be confused and unstable but deliver X-mas gifts '96 up between X-mas and New Years with new highs; but watch out during the winter months of '97!!!!!!
3. He predicts vast profits made '98 and '99 or a higher recovery growth in the market (as opposed to present impressive cycle of 70% growth.) My guess: it will in fact boost the market to DOW of 10,000 by ye
ar 2,000; making '97 the year to lock in stocks for quick profits in 2000.( Of course devaluation of the
dollar with inflation etc. is not a big deal to predict 10,000 DOW.)
4. He sees the big extra demand for securities and the indicators like dividends returned being popular, hasn't stopped yet.
=================================
Warren
------------------------------
From: Zoran Mitrovski <zmitrov@ee.rochester.edu>
Date: Sat, 25 Jan 1997 10:27:34 -0500 (EST)
Subject: Re: [CANSLIM] Breakout criteria and volatility in '97: Buy on the "spikes"?