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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Softechie who wrote (43470)3/23/2002 9:49:18 PM
From: ChrisJP  Read Replies (3) of 99280
 
Hi Softie -- first, let me say that I think Fleck is the greatest ...

but I'm gonna have to break your heart with these 2 little tidbits of news:

1. we are rapidly getting to the point where everyone is in on this rally

Not true -- maybe everyone who wants to be in on this rally is in on this rally, but there are plenty of people with money who are still waiting for the REAL RALLY. So don't be fooled by the low VIX on this go-round. It doesn't measure people who aren't in the market.

2. the percentage of bears as down to 11%

If you have to choose between one or the other -- the worst of the economic downturn is most likely over and therefore most people are bullish. But how bullish ? I'll bet if there were a scale instead of a simple bull/bear decision, you would see that even though people are bullish, they are not so bullish that they are taking out home mortgages and putting the proceeds into the market -- like they did in 1999/2000. Also -- bullish on the economy may not be the same as being bullish on the stock market.

Regards,
Chris
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