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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: Bill F. who wrote (28929)3/30/1999 3:51:00 AM
From: Oblomov  Read Replies (1) of 86076
 
Here are my three indicators of an impending cras... um.. I mean,
dip:

VIX below 20. See

quote.yahoo.com^VIX&d=my

before the 1987 crash, and the 1997 and 1998 bear corrections.

30yr yield above 5.75%

At current earnings est for 1999, will make S&P 500 40% overvalued,
according to the Fed model.

OTCM below 7.25

OTCM is an excellent proxy for the underlying strength of the market.
See

techstocks.com

7.25 is support going back to January 1995, and it was resistance
during 1993-1994. If OTCM were to drop below 7.25, it would "undo"
the 1995-1999 bull market, at least for the microcap stocks.

I assume that not all three will need to become true before the
fun begins... 2 out of 3?

AA
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