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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: bill meehan who wrote (67320)10/8/1999 4:12:00 PM
From: Cynic 2005  Read Replies (3) of 86076
 
David Tice had a plug for you:
<<As we have seen repeatedly this year, just when it appears that some air is going to come out of this bubble, weakness abruptly gives way to a rally. The rally then proceeds until it develops into a panic buying meltup, which then gives way abruptly to a sharp market decline. Today, we again entered the "meltup"/panic buying stage. The heart of this panic is, once again, in the technology and Internet sectors but also includes many heavily shorted names. This afternoon on CNBC Cantor Fitzgerald's Bill Meehan made an important point, stating that investors should not become complacent in regards to market risk just because the technology sector is reaching record highs. In 1987, the tech stocks made one final 10% speculative run over a two-week period with the Pacific Stock Exchange Technology index setting a record high on October 5th, only two weeks before the crash. Technology stocks were then decimated, losing about 40% of their value in the 15 trading sessions following their record high. Today there are many ominous parallels. We certainly see all the necessary characteristics for a similar scenario after the unprecedented speculative run following the Fed's financial system bailout last fall. Over the past 52 weeks, the NASDAQ 100 has gained 113%, the NASDAQ Telecommunications index 99%, the Morgan Stanley High Tech index 158%, the Semiconductors 179%, and The Street.com Internet index 302%. This incredible speculation has continued unabated despite the unmistakable signs of growing stress throughout our financial system. This is very dangerous.>>
prudentbear.com
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