BEAR MARKET/CRASH OR CORRECTION Message Board

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Strategies & Market Trends : BEAR MARKET/CRASH OR CORRECTION

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To: Feraldo who wrote (6)	10/29/1997 4:40:00 AM
From: FIFO_kid2	Read Replies (1) of 10

Another good indictor of this sell off is the recent speculation in the microcaps. A nasty market sell off occurred in June and July of 1996 right after the run up of Comparator Systems IDID. The hint of something was soon to come was indicated by me because the market averages ceased to go higher and companies such as Safe-T-Lock LOCKC went from $.50 to $5.00 in two days. I couldn't exactly predict when the fall was to occur but I thought it was anywhere between a few weeks after the rise in LOCKC and the end of January of 1998. Regarding what is about to happen I believe if we continue to keep a positive interest rate scenario the market will probably digest this between now and early December then go higher. I don't see much more downside than 15% from the highs given the strength in bonds. However, I am more concerned this recent debacle will kill the positive activity in many microcaps. Since I always tended to favor microcaps I am very worried that many microcaps may lose their momentum. I believe we are in the process of developing new market leaders and the market will forge ahead in Dec until there are indications the Fed will raises rates.

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