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Strategies & Market Trends : The Millennium Crash

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To: bobby beara who wrote (3705)10/24/1998 12:30:00 AM
From: Rarebird  Read Replies (2) of 5676
 
This is the Bear market rally which puts the stake in the Bull's Coffin:

Hopes are high. The bear is sucking in more cash. When the rally fails to generate new highs, disappointment and frustration resurface. We then retreat and break to new lows. The Bear Market now becomes official. 19.6% in 45 days was fairly quick. It was to easy. Let's lull everyone to sleep under the pretense of a resumption of the Bull Market. Then a Bear Raid catches everyone by surprise. What is the catalyst? Another hedge fund failure? No third quarter growth? Downward Earnings revisions on the S&P for 99? More Deflationary Shock Waves in Japan? Don't fight the Fed? But can the Fed fight the global deflationary spiral by itself and win? The Answer is a resounding NO!
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