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Strategies & Market Trends : Making Money is Main Objective
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To: lightwave51 who wrote (24)12/25/2000 7:15:59 PM
From: David Lee Smith   of 2155
 
Nice chart. One thing people forget is that the NAZ falls first, then the S&P and Dow. Flight to quality, frying pan into the fire. Many investors fled to VALUE stocks, but they forgot how to invest in these stocks. Most VALUE investors have beefed up their exposure to Technology stocks or have defined value as a multiple less than the market. I say few good value investors remain. Now the old economy stocks are inflated and about to burst.

Next week:
1. Focus on FED and California utilities center stage. The FED is likely to do something if the utility situation is as serious as some claim. Anyway, a utility cutting its dividend will shake some investors completely out of the market...no place to hide. Safe stocks are an illusion, remember AT&T? First dividend cut in 100 years.

2. Last minute tax selling...people always wait to the last minute. There have been some nasty December 29 market endings historically. There will be some bottom fishers, especially in low priced NAZ stocks. Most big names fall.

3. No one in town. Professional traders will likely extend their vacation until Jan 3rd. Rule of thumb, markets rally before major holidays and when the pros come back, they sell. Some hope for the bulls next week here.

4. Negative earnings announcements. Many companies waited until after Christmas to pre-announce. My experience is that the worst is always the last to report.

On balance, I think next week will be BEARISH for the markets. Perhaps we see that 2000-2200 area next week before the first week of January. I have a free web page where I occasionally post my thoughts. For information on the MomentuMonkey model click on the following link:

www7.bcity.com
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