February 21, 2002
The Dow fell 1% to close at 9834 on strong volume. The Nasdaq 100 fell more than 4% to close at 1348.
The risk is high that the Dow will break below 9500 and follow the Nasdaq into a down-trend.
Tech stocks unnerve a shaky market
Negative news from Ciena, Cisco and Intel (more)
Australia - ASX
The All Ords moved lower to close at 3380 despite the earlier gains in the US markets. The MACD and Slow Stochastic are both below their signal lines.
Newscorp prefs drop on rumors that WorldCom MCI wants to offload its $1.2 billion holding of preferred stock. (more)
Short-term: Avoid new entries.
Long-term: Wait for a correction on the secondary cycle.
I frequently receive Emails asking me to explain my long-term strategy:
I believe that there is a strong likelihood of a correction on the Dow and that this will impact on the local market. Now is not the time to take long-term positions in the market and I am waiting to see the outcome of the current uncertainty. This may take several months. When I refer to long-term it means a 1 year to 5 year investment time frame.
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