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Strategies & Market Trends : Tech Stock Options

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To: Lyle Abramowitz who wrote (19872)	8/16/1997 11:58:00 PM
From: Judy	of 58727

Dear Lyle, Fib for dynamical systems ... people apply Fib retracements to individual stocks and indices are just a composite of individual stocks. The sample size of stocks comprising the indices further tunes out aberrations. The Fib ratios are applicable under various economic contexts before resumption of the uptrend. In the most positive context, one which we have now, a 1/3 retracement would be typical in the scheme of things. We have had a continuous runup from 5200 to 8200, using round numbers. A 1/3 correction brings us to 7200, quite feasible given the market action we saw last Friday. Others can bring forward more sophisticated theories ... yet they arrive at the same approximate results for one of the possible outcomes of the 'big' picture. Ike is really the one to ask. Mind you, a 33 percent correction is not a slow bear. It is a healthy and needed correction. A thousand points over a couple of months is nothing. '87 yielded a 500 point drop in one day and that was in '87 dollars. Come, come, no one has a crystal ball and I am not a market timer. You and your boxes ... no comment, my dear.

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