Anyone scared of a correction, don't be because:
1. Houses correct markets not individual investors - They always advertise it in Acompora like fashion. Remember how we are always told the big boys ran not the individual investor, well if they were getting ready to run in order to correct, they would be scaring you. The only people trying to scare you is CNBC and other Media and small time analyst who have missed the boat. They scream how high the markets are then tell you that two thirds of the stocks in the DOW are negative for the year, NOT GREAT FOR A CORRECTION, too much damage to inventories of the Houses.
2. No Catalyst - don't give me the interest rate song and dance, I have heard it before. Around Oct. 30th, we were at 6.45 on the long Bond yield, give me a break, if the Houses were going to correct, they would have done it then, and be damned if a tick or two in the yield is going to ruin their New Years party now.
3. If Houses wanted to fabricate a Catalyst, they could use Y2K, they are not, great insight as to how they are thinking.
4. Earnings will be fantastic for quarter as evidenced by Oracle.
5. Economy too strong even for a rise in interest rates to pull back.
6. Too much liquidity, matter of supply and demand. Buyers are simply taking money that would normally go into some of those two thirds down stocks in the Dow and playing the Casino, big deal, sorry toilet paper and bank stocks.
7. Big Stocks are either too strong and desirable to correct like GE and MSFT or have already corrected and their money is going elsewhere
and from stocks like DELL and CPQ. The only area we could see 20% down side are the asinine valuated stocks like RHAT, LNUX, JNPR, EBAY etc.
8. Last but not least, Market is looking forward to Jan. and 2000.
Remember, if the Houses are not talking, there will be no correction!
Voltaire |
