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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: lizardK who wrote (5359)5/25/1999 3:44:00 PM
From: marc ultra  Read Replies (1) of 15132
 
Noah re <<<<< If this current downturn ends up in a full-fledged short term correction of the magnitude of approx 10% or so
on the NAZ/DOW/S&P,do you feel that BB's model will find this healthy as he stated a month or so ago, and set the stage for new highs or are we at the point of no return?? >>>>>

Excellent question I've also pondered. Obviously it would depend where his indicators such as money supply, rising rates sentiment etc. are. My guess is though his model was getting close to a sell signal he said he had visibility through May so I assume he was looking for end of May data that could tip things to a sell or not. Given a substantial correction at this point I would think his indicators will still suggest we're in a bull market and the correction would be viewed as positive. I think the most dangerous scenario would be a rally back toward the highs while money supply growth is still deteriorating etc. The worse scenario would be if his model proves a little too specific and a bit too low in sensitivity causing him to have missed the start of a bear but the market really is not showing signs of heading into a bear at this point

Marc
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