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

To: stockycd who wrote (30207)	10/17/1999 9:58:00 AM
From: Maarten Z	Read Replies (2) \| Respond to of 99985

Agree, excellent article. Presents a very clear picture to even most stubborn bull. Kinda reminds me of Perots infomercials during his first presidential campaign. when I read the article I could just picture the little dwarf holding up those charts and saying in his whiny voice "now look folks this here charts are showing we got us a serious problem" The last paragraph on derivatives really puts the nail in the coffin. THis, as all of us on this thread already know, is kicker for a hard decline. I have had arguements with friends of mine about the possibility of a crash. I point out the similiarities to 29 and 87 and they just shake their heads and say that things are different now. They will point out a repeat of 29 is impossible because of the short selling restrictions now in place and a repeat of 87 is equally impossible because of the program trading restrictions. I have to laugh at that because those restrictions were put in place as a consequence of those crashes. Beforehand noone realized those factors would be a catalyst in a crash only after the fact. Yes obviously those same factors will not be the cause in any current crash scenario - it will be some new factor. And that factor,which was not present before, is the incredible use of derivatives by large institutions. This will be the catalyst of any crash. And we have already seen an example with LTCM last year. MZ the