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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: ALTERN8 who wrote (464)	7/29/1999 11:25:00 PM
From: John D. White	Read Replies (1) \| Respond to of 48092

It doesn't look like a rolling correction to me. Watch the A/D and Hi/Lo indexes. Especially the .VIX. We won't see a decent rally until some real fear returns to the market. The public is trained to simply buy the dips. It is a young public. Too many folks have mortgaged the farm to buy stocks at 2,3, and 4 times historical mean valuations. That's not counting the inter-nuts. Everyone knows the market is easy money - right? But wait, haven't many of the latest IPO's flopped, costing the aftermarket players millions in the last week or so. Aren't IPO's a sure thing? Once the margin calls start coming due, there won't be as much money to move anywhere. Don't forget all the money sucked out of the market in those recent splattering of IPO's. For what? Brick and mortar? Hell no. We want to hire a bunch of 18 year olds to develop more pie-in-the-sky internet ideas using the publics hard earned 401K money. Reality is that much of this money went straight out of the market into the pockets of investment bankers and company officers. Markets peak when IPO's are the rage. 90% of these were NASDAQ. Any drain of liquidity is a negative for the market. I even sold all my penny stocks ($5 and under, that is). I once made the mistake of holding the little suckers in a down draft. They eventually drop more than the big ones on a percentage basis, but then take forever to base and go up again. It's easy to let this happen - a $5 stock drops a point, you let it go, then another, heck, now you are down 40% (and you had 5000 shares). You want to have that capital to jump back on the leaders when the market reverses. I made sure to dump 'em early this time. Then there's Alan. When Alan says we don't have to worry about capital leaving the US markets, It's time to worry about capital leaving the US markets. It almost hurts to talk like this. I haven't played the dark side so hard since 1981. I bet a lot of people forgot how. JMHO