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To: MythMan who wrote (5886)	9/14/1998 10:17:00 AM
From: Cynic 2005	Read Replies (1) of 86076

MM, I read a comment in latest issues of Barron's, the market seems to find a 'magical' support whenever DOW hits -20% mark. I see this as an extremely encouraging sign (for a bear). Remember what happened to the suckers at bought the -10% magical buy mark? My thesis is that all the suckers who buy on "technical buys" (aka, oversold, DMAs, critical supports etc. etc.) are destined to be overcome by much more powerful fundamental forces. The recent damage done to the "frequent" traders around the world is enormous, IMHO. I am guessing that a lot of their liquidity is drying-up. Those who can still afford to borrow, will do so and increase their leveraged bets. They will only be surprised further with another nasty and very quick 7-10% decline in a single day. On the other side of the coin, the name of the game is to get more suckers in to the market. They will FORCE the governments to do something. This will only make things more painful as the people who get benefit from this are the irresponsible speculators. There is no real cause for the market. The good thing that can happen to bulls is Clinton resignation. The second best thing is his impeachment. If he stays in the office the US markets are doomed for the next 2 years. Here is why: 1) weakness in dollar begins immediately. 2) He will lack clout to influence the G7 to make any important policy decisions. 3) America will be viewed as a nation that dodges responsibility for her own actions and the public sentiment is tilted towards protecting the stock market bubble than making the President pay for his crimes. To summarize, I think the bulls are still in danger zone. We may still have another day of rally for 3% or more. And then, the bottom should fall out. JMO.

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