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Bill, allow me to go on. 4) Short interest positions still very heavy which usually adds additional upside fuel to the bull market. But this theory does not always hold true as eventually, and after much pain, the shorts turn out to be right. Three cases in point: A) PRST. Money continued to short PRST from 50 all the way up to 200, and the stock collapsed back down to gravity below 50 2X as fast on the way down as up. Record short interest was there all the way up and down. B) ASND. Stock was heavily shorted all the way up to 70 and retreated 3X as fast on the way down as stock plummeted below 40 in the face of heavy shorts. C) At the 1929 top, there was a record amount of stock held short, just as their is today. Today's short position may not be bullish as some contend. In fact, more long-term bears have crossed-over to the bull camp in droves. Joe Granville, the consummate gloom and doomer, says we are in a "new era" and the Dow is going to 14,000 before the year 2000. Has he seen the light of day or the white's of his eyes??? Heavy Short positions therefore, can work both ways and only tend to magnify direction changes very drammatically. Unfortunately, history teaches us that things go down twice as fast as they go up. Gravity, no? 5) Dow has now set 220+ new daily record highs from '91-'97 and we are still counting. The previous high was 212 set back in the period from '23-'29, certainly when a "new era" existed and new technologies and breakthroughs were to lead us to the New Age of Promise. Just an observation. 6)There have been twice as many mergers in the last 12 mos. than in any previous year on wall street. The previous high? The 12 mos. prior to the 1987 crash (3,300 mergers). Today, 6,500 + and counting. 7)31,000 + investment clubs have formed in the last 2+ years, more than double the 13,000 clubs formed for membership in Jan. 1995. Stocks, the only game in town? 8) More mutual funds have a minimum of $1 million initial investment than no initial investment whatsoever. In the late 80's after the crash, they were begging for your money. Now they turn you away b/c you don't "qualify for minimum standards". They don't want the peanut "joe-lunch bucket account" but the "big fish KAHUNA" to fit the elitist minimum standards. Is the mother of all HOOKS baiting the biggest fish of all before our very eyes? More... JT |
