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Gold/Mining/Energy : Position Trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Tam who wrote (1734)	10/15/1999 9:16:00 AM
From: Ward Nicholson	Read Replies (1) \| Respond to of 2259

Thomas: I'll try to answer you on the week-end. I do know that market crashes hit ALL stocks. I guess we're about to find out. YEAH BABY YEAH! (been waiting all summer for this) This is going to be a busy next few days. WN

To: Thomas Tam who wrote (1734)	10/17/1999 12:53:00 AM
From: Ward Nicholson	Read Replies (3) \| Respond to of 2259

Thomas: so if the market were to tank, would crappy stocks like say that yogurt company :), decline any further? Or would the correction essentially involve the big names in both Canada and U.S.? Say if Microsoft corrected 10-15%, that could drop the S&P 20 points or more, by itself. I guess the question one must ask of the market is "where is the action?". Clearly the North American markets are seeing money flow into fewer equities like the TSE's Nortel and USA's Mr. Softie. From a pure risk:reward standpoint I think the most risk has got to be with the bigger caps right now. By the same token, any rally in the markets will be directed at the bigger caps because they are still where the action is. I don't think the smaller caps would be hit nearly as bad as the large caps in either a crash or a grinding bear market. However, that's not where the action is, so you probably won't see sustainable rallies in them either. The smaller and mid-sized caps have been in a bear market for quite some time and I don't see that changing anytime soon. If the DJIA and TSE were to see a massive drop I'm sure they'd be hit, but you just look at YF.A as an example. It doesn't really have much further down to go...it's dead money for now. But hey...the Russell 2000 could double in the next 6 months and I'd look like an ass. The above is just my current opinion. Check this out... arts.unimelb.edu.au WN