Jan.
25 Hotline
(Jan.
25, 2000)
This
is the weekly market commentary that is a part of the service you receive when
you subscribe to Wall Street Winners, Courtney Smith's
stock letter. For more information click here: www.kci-com.com.
Market Commentary:
All
major indexes are coming under pressure as I told they would last week.
The
high volatility we have and are seeing suggests a near term top. The big news
is that the tech-heavy NASDAQ has finally joined the selloff after not only resisting
the bear move but making new all time highs last week.
I
look for all the indexes to suffer a modest correction including the NASDAQ. This
will tend to hurt our WSW stocks but I think that you will see that they will
hold up better than the averages and will lead the market higher when the market
turns back to a bull market. Our portfolio is heavily weighted toward tech stocks
right now. However, the stocks we have in the portfolio will do better than the
average stock because their underlying fundamentals are so much more bullish.
My
suggested strategy is to hang on to your existing WSW positions through this correction.
Our stocks will not hurt as badly though I would expect to see a few names stopped
out. Keep the cash created by the stop outs to the side and get ready to buy the
remaining names in the WSW portfolio when the market starts to turn up.
It's
too early to call for a resumption of the bull market. We need to see a little
more time to the downside first.
