John Hughs Seeing Quotations

We're getting to the year-end period and stocks are starting to drift. You're seeing that today, ... There's still a lot of uncertainty about the economy and about the change in Bush's economic team. We're also coming off a period where the Dow rose for 8 weeks and so you're seeing a little pullback. You saw it last week and I think it's continuing.

What we're seeing is this kind off continuing correction in tech stocks that began a few weeks ago. The money is leaving tech and going to what we call value stocks.

I think when you look at the rally last week, the behavior we're seeing from the market today is pretty constructive, ... We're digesting the gains from last week, and if historical trends prove right, we should close the week a little higher. Technically and objectively, the market is doing everything it can.

We are seeing money leave anything that's not technology, biotech or telecom and shifting into those very groups.

We like technology still because it is one of the better acting groups, ... We've seen a good push with the Internet stocks, but we're seeing with a bit of a warning that you have to be quick here if things start to deteriorate, to get out.

Everything came down to key support levels late last week and so I think you're seeing a bounce off that, ... You've also got some economic reports that are being perceived favorably, plus McDonald's earnings.

You're seeing a follow-through of what you've seen this week, ... On Monday, you had some profit-taking after Saddam Hussein's capture, Tuesday you saw a rally, Wednesday it consolidated and today we're up again. I would expect the week to end on an up note.

The chips and the Nasdaq, that's where the leadership was in the April to May rally, and after two weeks of sideways trading, we're seeing a bit of a resurgence in that area,