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Strategies & Market Trends : Waiting for the big Kahuna

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To: John Dally who wrote (4782)8/31/1997 7:03:00 AM
From: Arik T.G.   of 94695
 
Thanks John,

I believe '87 wasn't a crash, in the sense that the recovery was too fast. Maybe a market failure of some sort that enhanced that needed correction to a massive sell off.
I'm not saying that a scenario like that cannot be repeated. However, if it will, IMO it won't end the same way. If we do get below SPX 820 it is most likely that the snow ball will be too big to be stopped, and the situation can deteriorate to a great depression like in the '30s.

Anybody has data on the behavior of small caps 8-10/87 ?

ATG
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