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To: carranza who wrote (55199)12/20/1999 1:46:00 PM
From: Curbstone  Respond to of 152472
 
With or without the Pitbull Crash Index, I found the following information interesting:

How does the gizmo define a crash?

MARKET DECLINE: Less than 10% drop in the market before recovery.

MARKET CORRECTION: 10% to 15% retracement in prices.

MARKET CRASH:The key here is not the depth alone, but the minimum duration. If a price decline of 15% were to occur in less than 3 months, (1 quarter), then it would be considered a market crash. Once the decline deepens and lasts for at least a quarter then it is considered that we have entered a bear market.

BEAR MARKET: Most say a 20% decline, (I subscribe to 25%), from an Index-high, over a period of 3 months, (1 quarter), would be considered a bear market. If the selloff occurs in a shorter period of time then it is a market crash. Once the decline lasts for at least a quarter then it is considered that we have entered a bear market.



To: carranza who wrote (55199)12/20/1999 6:42:00 PM
From: waverider  Respond to of 152472
 
>>>It would have to lose more than half of its market cap before I start to lose money.<<<

Somehow I think if we drop 50% most of us would lose money...except for people who don't own the stock.

<H>