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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.31-1.1%Nov 6 4:00 PM EST

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To: Haim R. Branisteanu who wrote (43253)3/16/2000 7:39:00 AM
From: Tunica Albuginea  Read Replies (1) of 99985
 
Haim, at what point in MDD discussions do we start to factor in the unmeasurable:

Panic selling.

Is panic, as a human emotion/reaction gone? Forever?

At what point does the public panic and how will panic manifest in year 2000?

In 1928 there where times during the day when there were no buyers left to buy.

What will it take to produce panic?

Everytime the Fed raises rates the Naz goes up.

Now the Fed is about to raise rates , the Dow goes up.

I thought that the purpose of raising rates was to slow the
economy which will lower profits which would tank stocks.

Not happening. Barely a dent.

My view is that Alan will have to do several tightenings to stop this
to the point of reccession.
No soft landing here.

It will have to be a big recession though. One with Neon lights,

bells and whistles, the orchestra, a show.

This is so Joe Blow Day Trader can understand that the party is over.

It is like the legally required engraved warnings on handguns:
don't point this to your head and pull the trigger.That's dangerous .

Joe Blow Day Trader does not understand panic selling
does not believe in loosing control of a situation through panic.

So the Fed has to spell it out for them in Neon lights.

At the end of that show, I hope, many on this thread [ and me, :-)) ] will be there to pick up the pieces
[ with left over cash : -)) ].

cheers,

back later

TA
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