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Well, if you don't believe in TA, perhaps you believe in psychology ...
there has not been nearly enough fear to make up for the years and thousands
of points of greed. The virtuous circle of managed earnings and executive
compensation has now been interrupted and they're just getting started
wringing the crud out of the books, executive compensation, and options
grants.
Earl
----- Original Message -----
From: "BobsKC" <bobskc@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, March 19, 2001 5:07 PM
Subject: [RT] Tail wagging the dog?
>
> Most of those here know that I'm not a technician and don't put a lot of
> stock in it. Even so, I have come to respect many members on this list
for
> the hard work they do and I have come to appreciate that when most of the
> technicians agree on one thing, it is like to happen due to their belief,
> if nothing else. I spent some time this weekend looking at the economy,
> what large caps are saying and what the firms that supply them are
> saying. My conclusion is basic.. I believe the tail is wagging the dog.
>
> Some have compared the current situation to the democratic inspired mess
of
> the Carter administration and it's 22% interest rates , freeze on wage
> increases etc. The Reich mess. (I probably mispelled his name). Lets
see
> where we are. We have low interest rates and they are dropping. We have
> nearly zero inflation. We have a business environment that is healthy but
> dropping off the greatest growth cycle in our history. Why is it
> dropping? What is the catalyst?
>
> In my opinion, it is the stock market. It's cutting 50-90% of a firms
> market cap and the borrowing power and purchasing ability that goes with
> that. Filter that down to the mid caps that supply them and the small
caps
> that supply the mid caps and you have a mess. Japanese banks aside, if
> people begin to buy stocks again, I believe you'll see a magical recovery
> in the economy. (Of course, the same is true for the end line consumer
> once his/her savings/investments begin to recover as well).
>
> Last, I believe this event/bearmarket/correction was needed and needed
> badly. Now, the bubble is burst. The pie in the sky throwing money at a
> dartboard of equity names is over. The throwing money at any .com stock
> that comes along is over. The market is returning to common sense and
> while this scares many folks into a panic and predictions of disaster, one
> needs to consider what is wrong with the market and if it's just the
market
> itself, once it turns, the economy will turn with it and the shorts will
be
> just like the fanatics were two years ago .. they won't believe it can
> actually go back up and will get hammered.
>
> Anyway, I try not to post too often these days so I hope you'll tolerate
my
> ranting. :))
>
> Good investing to all .. be nimble
>
> Bob
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
>
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