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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Christopher Loe who wrote (57070)	8/24/1999 8:19:00 AM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 120523

Well, I'm pretty confounded by it, too. The fact that we see so little caution before the Fed and before the usual Sept-Oct weakness surprises me, to say the least. My gut feeling is that the remarkable trading rally of the past two weeks is about to turn into a sucker's rally, so I'm mostly in cash and am basically trading on a hit-and-run basis at this point. CNBC reported on an interesting sentiment indicator yesterday, which basically said that new (inexperienced) investors have an exceptionally high degree of confidence in the stock market right now and that experienced investors have an exceptionally low degree of confidence. I guess the question is: will the experienced investors (who presumably are sitting on cash) follow the newbies back into the market? Or will the newbies hit a point where they start drawing money out of the market? I'm enjoying the great trading opportunities in the market, but join you in feeling that this is a dangerous time. It seems like a good time to keep greed in check: take profits on winning plays, cut losers ruthlessly . . . play the tape.