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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum

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To: Luce Wildebeest who wrote (5644)3/1/2001 4:48:49 PM
From: Dave Gore  Read Replies (1) of 6445
 
Calvin, right....and being a contrarian and psychological thinker, I would rather have the Market think we can't rally without capitulation, which I don't think we are going to get. The Market will rally most if people are not expecting it, as those short-covering will fuel its advance. That's why I didn't expect much action from a Fed cut even if it did occur. Too many were expecting the Market would go up. Catching those shorting unaware is much better.

Like Lane and others have said, the Mutual Funds who largely do not short, have huge positions in techs they may still be trying to dump into the Market. If so, this short-circuits rallies as they sell into the volume buying coming in from we small guys.

The key is changing the mindset and building confidence so that they start buying more than selling. Hopefully most of their selling is done.
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