wmeubank@ocp.kcmo.com
TRIESTER ON THE MARKETS-OSPREY TRADING
111 Presidential Blvd., Ste 230,
Bala Cynwyd PA
(June 13, 1997) S&P 500 INDEX: The SPUZ rallied up to 898.00
as the week ended. Bonds have rallied 26 tics to 112-04 June. The new records
have come as planned. This was expected as the top was over the 885.20.
The S&P peaked at the 898.20 mark this week, rising impressively on
Thursday with a 1500-point rise in the first three hours. The trend is
up intermediately. The trading sellers and shorting sunk the tech stocks
and blue chip stocks on Thursday as S&P gained 4-plus points on the
day Thursday. A Fed no move on rates this week was positive. The overseas
were quiet this week with a nice rally in European stocks. The FTSE topped
4600 on Wednesday. We have not seen a short-term top in Europe DAX, CAC
IBEX, SMI, Milan. Professionals are long for the intermediate term here
as bond yields fell to 6.75% and a run to 112-04 in June bonds. The PPI
figure showed a drop of .3% in inflation. The Fed made no move on the discount
rate in FOMC action. The results were not far from estimates. The stock
market is trending up on a short- term basis as most technicians can see.
The latest target was 898.20 hit on the upside Friday. We prefer to stand
aside now as 890 traded. The next time point to look for a change is June
20. The mini trend is up, major trends are staying negative, except the
long-term trend up from the 1987 crash low. For now we will watch and observe
the action. The majors were buying. Salomon bought 2000 contracts as stocks
jumped sharply, then gave back all to the shorts by day's end. We look
for equities to remain trendy until the end of June. IBM fell to 88. and
Microgates hit 122.25 before pulling back to 120.25. Good earnings for
Dell Computer as well. May 8 was a high as expected. The levels to watch
are 902.80 and 7770 Dow Jones and we saw our 850.90 high this week on Thursday.
If these break either way, we will see follow through to the next support
or resistance levels--i.e., 902.80 and 7770.00. This technical picture
is clear as in the Dow and others and the NASDAQ breached 1400 on the OTC
Composite Index. The other indicators are now mixed up. Most of the buyers
have been rewarded this week as averages came back nicely. The other indexes
were selling off into lower ranges. Stocks ignited with a 120-point rise
on Thursday in the Dow to 7711. This was a 406-point rise on the week in
the Dow Jones industrials. The long-term trend is still upward. The great
ranges in the S&P continue at 1000-1600. We now expect it from this
market. The next target will be 902.00 and we can see if there is any signals
occurring here. Down and S&P was up in the third week of June 57 percent
of the years from 1956 through 1996. The U.S. stocks are on a tear. The
summer rally is on and should not be sold short. Yet! Stay a bit long now
as June continues. ADL, MO, PG and HWP are the leaders in the Dow.
September S&P 500 Index--Position: Last 898.20 new record high!
David E. Triester
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