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Strategies & Market Trends : Tech Stock Options

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To: Robert Graham who wrote (42593)5/7/1998 6:08:00 PM
From: Tom Trader  Read Replies (1) of 58727
 
Re the market

I basically agree with your analysis--the quality of the next market rally from whatever lows we make during this current pull-back should be quite revealing of the health of this market.

If I had to hazard a guess as to the next move, I suspect that we will probably see a strong rally in some of the averages to new highs because the bonds will likely support the rally. Like I said the last go around, there is too much caution and pessimism for the market to fold at this point and sentiment indicators do not support a major decline.

Not sure what the trigger will be for a more prolonged decline -- but I know that some have suggested that the end May/June time frame for a cycle top and may be this together with technical weakness and perhaps Asia's problems combined with a damaging report from Starr, that is expected in that time frame, may be the catalysts.

But ultimately, all of this is mere conjecture.
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