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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (7197)2/7/2004 11:45:03 AM
From: Crimson Ghost  Read Replies (1) of 110194
 
Russ:

I rate the recent weakness in junk bonds as the most important bear signal in a long time. Unless junk reverses hard and fast, stocks are going to follow very soon IMHO.

The pattern of this market is that every 2-3% dip is aggressively bought. I have opined before that this market must either continue to surge or decline SHARPLY.

With many expecting a correction soon, my take is that it will not happen. When this thing turns, it will be much more violent that the modest correction many expect. Something more like a mini crash. The idea that the market will allow all those waiting to sell on the first sign of real weakness an easy out is absurd IMHO.
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