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Two weeks ago I posted that the FirstCapital Market Direction System had
given a negative signal and a top was begriming to develop in ernest. It now
appears that the top is here. The following is an excerpt from Stock Market
Timing the URL is:
http://www.firstcap.com
It is free.
It appears to me that the market is establishing an important top. Important
for two reasons. First because it is developing as a well defined classic
combination of rapidly deteriorating market internals along with a falling
FirstCapital Oscillator. We have also seen many of the anecdotal signs that
some armature market watchers consider important at tops, such as frothiness
and speculative trading (the Internet Stocks) and excessive confidence among
the public and professionals. That in itself is not the key. The second
reason is equally important. That is the way the market recovered from the
last correction bottom back in October 1997. At that time instead of the
usual regaining of internal strength and recovering rapidly, the market
vacillated and continued to show weakness for about six weeks until it
finally definitively turned up in late January. During that period some of
the most famous Wall Street Bulls began to question their faith in an ever
upward market and pulled in their horns (pun intended). When the market
regained strength they reestablished their targets of the market going to
Mars. Weather the market goes to Mars or follows the unsinkable Titanic will
be determined by what happens at the next market bottom and recovery.
Victor Weintraub
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