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Strategies & Market Trends : The Stock Market Bubble
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To: sammaster who wrote (2311)11/11/1998 5:56:00 PM
From: Ted Shelton  Read Replies (1) of 3339
 
Nope, all I had to do was buy to cover my short positions, and the bull tripped :-)

It is amazing how closely the primary "portal" Internet stocks actually follow one another -- every up and down tick is a virtual mirror across these stocks. To me this says that there trading has nothing to do with them as individual companies, and everything to do with the sector trading under a bubble mindset:

techstocks.com

To say the obvious -- it would seem that the short term likelihood of a major decline has everything to do with Greenspan. Will he cut rates? Will they remain the same -- tell me what you think and why.

I think he will keep them steady. He has already shown that he is willing to cut rates between meetings, so not cutting on the 17th doesn't mean no cut is coming. I think the market and Greenspan are playing a game of chicken right now -- the market has clearly become important to consumer confidence -- business managers being one category of "consumer" whose confidence is crucial right now. So the Fed can't afford a big dump in equity values. At the same time, the market is using this problem (that the Fed doesn't want the market to drop) to take equities to new highs, even as evidence grows that the economy is slowing. Greenspan can't let the speculators get to out of control either or the fall will be that much more painful. He is on a tightrope, and the middle path is not to cut rates on the 17th, see how the market reacts, and reserve the ability to cut rates in two weeks. Maybe on the usually slow trading day right after Thanksgiving.

My $0.02

Now, what do you think? I am tired of hearing the talking heads go around in circles with nothing new to say...

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