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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Haim R. Branisteanu who wrote (76910)3/7/2001 9:54:32 PM
From: pater tenebrarum  Read Replies (1) of 436258
 
Haim, i keep pointing out that it is not so much the net commercial short position that is of concern - it is the fact that the small speculators hold a record high net long position.
the commercials hedge - they presumably hold a lot of offsetting inventory. the fact remains that no major market bottom has ever occurred with the small speculators heavily long. that's just not on.
lots of small, and especially mid cap stocks have moved higher while the extremely overvalued big cap segment has been shredded. the result is that those mid caps are now overvalued too, while the big cap valuations are far from having corrected to the point where they represent value.
so now there's no value anywhere.it's a traders market, yes. but imo not one for investors.
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