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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Lucretius who started this subject11/2/2001 5:53:34 PM
From: rolatzi   of 436258
 
Saw an interesting graph today regarding antitrust suits and average stock market price

They noted the dates and average stock prices at which antitrust actions were taken and when they were settled. The three that I remember were RCA, Alcoa and IBM. In all cases suits were initiated at the top of the market and were settled at either the bottom or at the end of a trendless correction (IBM). The Microsoft suit was likewise initiated at the top of the last bull market and it is very auspicious that it is being settled now. The article was very recent but the author did not know that a settlement with MSFT was in the cards. The explanation of the observed trend was that antitrust suits are an indicator of market psychology and as such are important signs of the market's prognosis.

What do people think?
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