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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: J.T. who wrote ()6/2/1999 1:12:00 AM
From: J.T.  Read Replies (3) of 19219
 
We are at a cross-roads in the stock market. Bulls contend that fundamentals have not changed, corporate earnings are strong, the economy is sound, inflation is reasonably tame, interest rates are low, and we can expect for the Bull Market to continue its upward course to new highs after a short correction. Bears argue that market multiples are at historic highs (SPX @ 34 p/e, DOW at 26 p/e)and can not be sustained, mutual fund cash levels are at dangerously low levels as investors demand money managers be fully invested to get high returns or your fired. Internet stocks are over-margined and mania-valued; savings rate is at all-time low levels; and consumers are spending on all cylinders and this will come to screeching halt if and when the FED raises rates to choke off the strengthening economy (or interest rates continue heading higher). These and other reasons, bears argue, will end greatest bull run in market history as Bull hits brick wall and gets stopped dead in its tracks. In between these two wide dichotomous views is opportunity. And once multiple stock indices are disected and analyzed, when the market breaks , in either direction, we will be there with it and not left behind. Feel free to comment or critique either viewpoint. I will take the low road and give examples of some recent previous posts to get a flavor for current market analysis. J.T.
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