LOL, Well stay tuned in <G>
I can't seem to convey to very many people the way a blow off
top happens & I've tried hard enough.
In short the small caps , and less liquid ones start a wild
run up, they actually take over and become the force that pushes the index up, the Blues run out of steam..while the Small caps continue
up, then the blues start a decline with the small caps still going
up, the herd don't seem to notice this, but with the blues easing
down while the less liquid run up the market losses it's ability
to be liquid, and then the hard retraction comes.
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I don't say there can't be an exception to this rule, but I do say
nobody but nobody can really tell when that will be, and it's
shear folly to think you can, and then bet that you have found the
one big exception to a rule that repeats itself over and over.
We have not had the final run up in the small caps that takes
the liquid out of the market and sets up the bigger down
turn.
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Contrary to what a lot of people think, the blue chip run has
also been as result of funds being cautious and staying in
more liquid stocks, other than the internuts there has been
a lot of caution in buying hard to sell issues.
Also I see funds in cash positions , not leveraged ones.
We still got a leg or two to the upside, but I sure glad
I did not jump in small caps yet.
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Believe it or not the Magic Ten are not just up, they are beating
the index, My server is giving some problems, so I can't check
but I'm most sure the Nifty Fifty are up and also beating the indexes, the tail will follow after the fear eases.
Jim
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