Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (41412)	7/6/1999 11:33:00 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 94695

Haim, the bond looks weak today...it seems to have an eye on the oil market. did you notice how Dow target inflation seems to be on an even steeper slope than the stock market itself? analysts are practically falling over each other with their predictions of ever higher prices. interestingly not one of them takes the time to explain how their predictions relate to the famous 'fair value' model which shows the market at it's most overvalued level ever. of course i have to concede that this unbridled optimism may be right on target, since this mania has a habit of shaming both pessimists and optimists alike, the former by refusing to collapse and the latter by exceeding their targets with unwavering regularity... i follow an interesting little indicator which tracks sentiment toward the Nasdaq as a ratio of sentiment toward the gold market; i will ask it's inventor if i may use it on my sentiment page in the future. i don't remember it's exact calculation now, but it has just given a strong sell signal. we'll see if that pans out, but since the ratio of bond yields vs. dividend yields is hitting fresh highs daily, it may take a while yet. the reason for this is that the ratio was at 5,07 this morning and if it rises to a Fibonacci 1,618 times the high of 3,44 registered in 1987 it would have to go to 5,57. this can be accomplished by either a sharp rise in bond yields or a sharp rise in stock prices. three guesses which it will be. regards, hb