Great Bear Market Tuesday 08/04/98 ÿÿÿÿ Special Report
"And awaaay we go!!" Go to bearmarketcentral.com
The late great Jackie Gleason brought life to this expression, as he
flapped his arms and dashed off stage. Today, the Bull exited, stage
left. The new Great Bear Market has taken center stage, and he
definitely has the audience's attention.
WOW did this new market take off in a hurry!! Today's 300 point "drop"
in the DJIA took most market participants by surprise. Hopefully,
surfers to bearmarketcentral.com were prepared, at least psychologically and spiritually. Hopefully, many of you were able to load up on puts or at least one of the bear-friendly mutual funds out there.
The ProFunds UltraBear Fund gained an incredible 7.66% today! Rydex Ursa profited by 3.8%. The Prudent Bear Fund lagged just a bit, up only 3.00%!
The DJIA has now lost 850 points from its peak just 18 days ago. That's down 9% so far, and the Bear has only just arrived on the set. Act I is just getting started!
The pundits blamed it on poor Ralph Acampora, the formerly perma-bull
who dared to accept reality and state "we're in a bear market!" Ralph,
welcome to the party!
One apologist blamed it on the fact that many veteran Wall Street money managers are on vacation, leaving their understudies in charge. These tenderfoots were puking in the john and wishing they were still managing their baseball card collections.
The pundits and mavens can rationalize to their heart's content, but
nothing fundamental has changed since the high of 9368 on July 20th.
What has changed is investor expectations and motivations. It is just
starting to dawn on the market movers and shakers that maybe the
business cycle and the laws of physics haven't been repealed. People are starting to get out of their chairs and head for the exits. It's not a mad rush, yet. That'll come in a couple of months.
Market technicals are definitely oversold, so at least a small bounce or pause should be expected soon. But as we go to press at Tuesday evening 10:45 p.m. EST,ÿ Asian stocks are following through and dropping like a rock. South Korea is down 4.5%, Indonesia down 3.3%. Australia down 2%.
Europe should follow suit. Let's see if Wall Street has on its
tap-dancing shoes, or its concrete galoshes. Either way, 1 billion share days on the NYSE and NASDAQ are probable. |
