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Strategies & Market Trends : Roger's 1998 Short Picks

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To: craig crawford who wrote (13786)9/16/1998 9:35:00 AM
From: Franco Battista  Read Replies (2) of 18691
 
I agree Craig. We are still in the polite phase of this bear market. When the Dell's and Msft's and Csco's get clipped, then all hell will break loose. I've read a great deal about bear markets and what I recall most clearly is that the nature of a bear market is to drag down as many market participants as possible, the bear is very clever, very sneaky. Many investors see spike ups in the market as the return of the bull, yet the market keeps printing new lows. For the moment it is all very polite, but a few weeks ago we got a small sampling of how nasty it can get, when even the market Darlings were hit hard, even Dell was down 18 points. Dell has bounced back, so did other darlings, this is giving comfort to investors of the big breath stocks. This is precisely the type of trap that a true bear market will spring. Next time Dell loses 18 points, most will not sell, rather they will probably buy more and get really hurt.
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