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


To: Stcgg who wrote (30200)10/17/1999 11:16:00 AM
From: Ramsey Su  Respond to of 99985
 
home.earthlink.net

That is one great article indeed.

I see a couple of things that may indicate that "this time it is different".

The liquidity issue is most alarming, when you combine the "Dollar Trading Volume vs GDP" and the "Running out of buying power" charts. It seems to indicate to me that the current "mania" is driven by stock market valuation itself vs new money coming into the market. While one can opine this can continue indefinitely, any reversal, however, would have the same compounding effect as it did on the way up.

I was surprised to see that 1987 did not have the same signals as we do now.

Further more, while Greenspan may be taking credit for the round of correction, the media has not pay much attention to global issues which triggered last fall's correction. Japan, China, Brazil and Russia are all in no better shape today than last year. IMF recently published opinion (too lazy to find and link, go find it yourself if you like) stated that the world is still heavily dependant upon the US economy for recovery. If we take any steps backwards, look out.

Not suggesting that we are going to collapse, I wonder what strategy could be most profitable in the event that tomorrow is indeed another black monday?

Comments anyone?

Ramsey