Analysts, Gurus & Pundits: THE YAMAMOTO FORECAST

» Normxxx - THE YAMAMOTO FORECAST

By Irwin T. Yamamoto | 11 May 2005

THE YAMAMOTO FORECAST
P.O. Box 573, Kahului, Hawaii
808-877-2690

STOCK INDICES: FUNDAMENTALS-- The doubts on earnings, interest rates, inflation and the economy have lowered stock prices to more reasonable levels. A bit more. No, they are not cheap by historical standards. Yet the quick market downturn makes equities a better bargain than they were a few short weeks ago. Hence, the reduced prices can attract potential buyers when and if the business backdrop improves. I believe the aforementioned will eventually be realized. In other words, the economic picture may brighten. Well, at least the perception about it will. Let's address the issues on a near-term basis.

TECHNICALS-- The making of an oversold condition opens the door for a technical bounce. I've spotted trading volume multiply on the downside. A sign of the weaker players tossing in the towel. Additional periods of selling might create a "bottom."

Meaningful resistance levels are being removed. The opportunity for a tradable rally exists. A chance for near-term profits is forming. Then again, keep in mind these possibilities must be seen strictly as a trade, and not as investments for the long haul.

The contents of this letter/report does not necessarily reflect the opinions or viewpoint of normxxx. They are provided for informational/educational purposes only.

The content of this message is not to be construed as constituting market or investment advice. It is intended for educational purposes only. Individuals should consult with their own advisors for specific investment advice.

-- posted by Normxxx