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I agree completely. I also think market psychology is now favoring the
bulls as well. According to CNBC, over $37 billion has flowed into money
market funds since the beginning of the year. That's a lot of firepower
just sitting on the sidelines waiting to attack the market. The so-called
experts can talk about high p/e ratios until their blue in the face, but I
think Joe Q. Investor is going to wake up one day next week and say "my God,
DELL and MSFT are 30 points off their highs, what the hell am I waiting
for?"
Bruce
-----Original Message-----
From: Earl Adamy <eadamy@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Friday, February 19, 1999 9:27 AM
Subject: MKT S&P Breakout/Breakdown
>Those looking for a big breakdown in the S&P might want to take a good look
>at attached weekly chart of futures. We've been in an 80+- point
>consolidation range for about two months now and the market has held the
>range in spite of some bad news including a big spike in rates. We have yet
>to take out the 1210 low w/e Jan 15 much less the 1147 low w/e Dec 18. Note
>also some of the similarities to 1996.
>
>While one should not dismiss the possibility of a breakdown, one should
also
>keep in mind that time in consolidation is a substitute for depth of
>correction. There is a very real possibility of an explosive breakout
>running several hundred S&P points before any truly deep correction occurs.
>The market will tell us which direction it prefers when it is ready.
>
>Earl
>
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