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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (24215)	8/31/1999 8:07:00 AM
From: Kip518	Respond to of 99985

money has been leaving the general market since last November, a lot of it got piled back into big caps (more liquid and "easier" to exit) and fliers - short term trading vehicles. I think Galbraith would label the money going into big caps as the money that thinks it will be able get out at the top. bobby, I've always liked Joe Granville's metaphor that the market is a bathtub -- money flows in til the tub is full (tubs also always pop to mind whenever Maria Bagadonuts [credit Fleckenstein]solemnly intones "money's flowing back into the market, folks") -- then, for whatever reason, the plug is pulled and out it goes. At the bottom of the tub, nearest the drain, is all the dirty water (junk and hype stocks) that goes first..most gone forever. Smart money, feeling the undertow, run to the Big Caps because they're floating with the Ivory soap and rubber ducky (also contributing to the illusion from the Dow that everything is really okay). However, the water level just keeps dropping til the faucet is eventually turned back on. The question is, how close will the rubber duck be sucked toward the drain hole before then? I'm sensing a sucking feeling now. How about you? (Hi, Lola)