well if we use this site than I guess the entire market is doomed. Seems everything is overvalued.
That statement could be very true. I just received the following from Alertline:
Market Update
A L E R T N E W S L E T T E R . C O M 8/03/98
===============================================
I don't like being the negative guy... I really don't.
H*&^, I'm usually as positive as the next guy. For weeks
now I have had to rain on everyone's parade and talk about
the negatives of the market. We are told some one even
threatened to sue one of the wire services because of
our negative release that hit a couple weeks back.
Cold hard truth is the market can't keep going like this.
I was ready to sit down go through some charts,look at the
indices, some large caps and doggone it, I was gonna find you
a large cap stock, oversold, just ripe for a bounce... Well, I can't do it.
Not comfortably, there are some sure, but I see more down side
ahead, probably fast and furious.
There are a couple stocks that are pretty scary.Great companies sure,
but they are WAY ahead of themselves, they are major components of
the Dow. It doesn't take a rocket scientist to figure this out either:
IBM, EK and JNJ. Before you start shouting about us being Un-
American(some guy even called me mean over the weekend),
remember, I recognize that these are good companies with good
earnings momentum etc. etc. But mark my words they are gonna roll
back over and fill those gaps.
In the short term, the market will be struggling to stay above 8823, below
there is where all hell starts to break loose again. I have had my eye on
this 8665 level for some time. I am beginning to believe that the 8665
could just be a short stop on the way to test that 8450. Breaking that it
gets uglier still. The question becomes do the institutions step
in then ? I gotta think they are pretty fully invested and wouldn't mind
locking
in some gains. What about margin calls, what about when people get fed
up and finally just want to get out at any cost, then what?
There is value out there, you just have to look in areas that others are not.
Call me crazy, I know some of you will, for now...
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