November 24, 2002 -- Words From The Bulls

Quotes gathered from Reuters, CBS MarketWatch, Bloomgerg, SmartMoney, and Prudential Securities.

“The market clearly smells a recovery. We are seeing signs of improvement in business spending. Real business investment in equipment and software has risen for two quarters in a row.”  Doug Greenig, market commentator at RBS Greenwich Capital.

Tobias Levkovich, institutional equity strategist at Salomon Smith Barney, feels that the current stock rally can extend since the market is far from overvalued, sentiment has not yet turned bullish -- a positive from a contrarian standpoint -- and much of the bad news on earnings appears to be priced in. Additionally, the strategist notes that liquidity remains positive and that the consumer does not seem "ready to collapse."

Terry Danish, director of technical research at Maxim Group, noted that both the Nasdaq and S&P have cleared important resistance levels.  “This puts in place the classic sequence of 'higher highs' and sets the stage for the first valid attempt at sustainability.”

“The quality of Thursday's rally and the move above near-term resistance levels by all the major indexes should indicate further upside potential for the market,” commented Lowry Research's Richard Dickson.

“Things have become much more positive as far as the stock market is concerned," said Bob Basel, a senior trader at Salomon Smith Barney. “Corporate earnings have been pretty good, (company) guidance was mostly better, interest rates are near all-time lows and economic data seems to be good.”

“The macroeconomic factors are all positive for the market to go higher,” said Art Hogan, chief market analyst at Jefferies & Co. in Boston. “The Republicans are in charge, interest rates and jobless numbers are lower, and inflation is nil.”

“Since the technical position ... has improved, the odds of a worthwhile extension to the post-October rally have improved considerably,” Martin Pring, of Pring Research and editor of the Weekly InterMarket Update, commented Friday.

Larry Wachtel, a veteran market-watcher for Prudential Securities, also spied signs of strong attraction. “If this isn't love, it will have to do until the real thing comes along.”

“The Nasdaq Composite and the Nasdaq 100 (NDX) both closed above their respective August highs. This represents, in our opinion, the strongest technical advance in these two indices in over two years and eight months. This development indeed places these indices in the ‘quality rally’ mode. This means to us that a sufficient base has been completed and that the stage should be set for the resumption of an advance that we consider sustainable (lasting many months).” Ralph Acampora, Prudential Securities

All data and information within these pages is thought to be taken from reliable sources but there is no guarantee as such. All opinions expressed on this site are opinions and should not be regarded as investment advice.
Copyright © 2000, 2001, 2002
FallStreet.com