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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: J.T. who wrote (12427)5/29/2002 1:04:43 AM
From: ahhaha  Read Replies (5) of 19219
 
The public continues to do the work of the specialists shorting stock week after week non-stop since the first week in January.

Quite correct and corroborated by every trade money flow done across all markets. The flow - price divergence is the greatest ever measured. Money flow bottomed in April '01 and has been rising at an ever steeper slope ever since. The only similar degree of divergence occurred between Sept. '81 and Aug. '82, but that earlier version pales in comparison to what has developed since 4/01.

A massive short squeeze - the greatest of all time is in the brewing.

Quite correct and at this point, unavoidable. The squeeze will occur on an opening gap where many of the large cap NAZ will not be able to be opened for days. It will be driven by the $trillions held short by 6000 hedge funds trying to avoid disaster. I estimate that NAZ is 700 points below where it would be commensurate with net flow and so the gap should be about 700 points. Accordingly, for example, CSCO would open around 25.

The up move in the late '90s was a fraud, no doubt, a fraud built on the deceit of 'crats waging war on wealth, but operating beyond their domain has been a revolution in productivity which has persisted for so long that it can no longer be ignored. The fraud rightly produced the major upside structural break out for the wrong reasons. The stock market is always wrong. The stock market corrected itself. It pulled back to the break out point in the greatest shake-out in history. It had to shake out all the thieves and rid itself of the unworthy. You have to be long, and hold, and suffer, to be worthy and to make money.
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