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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (40570)	2/10/2000 12:38:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

One Key point is that the Nasd makes it's price high after the broader averages in maturing bull markets. Many moons ago--perhaps over two years -- I said something along the same lines on the Kahuna thread, when some people were looking for a crash. I suggested that, more often than not, bull markets end with a frenzy of speculation where third and fourth tier stocks see dramatic increases. Perhaps in some respects we are seeing some of that nowadays; however, another aspect of that terminal stage is that the frenzy of speculation can last a long, long time -- and often some of the biggest gains occur during the last hurrah! The real challenge is to be able to exit before it is all over -- regrettably, that is something few are able to do, since we all get conditioned to the notion that this is one more dip and one more buying opportunity. This is one of the reasons that I have been checking out hedging approaches -- as I told someone in a pm, I am willing to give up some of the potential gains that I might make with a portfolio of growth stocks in return for the comfort of having some portfolio protection. If this can be structured correctly, then dips -- and even serious declines -- would be something that one can be quite nonchalant about! Not for a moment suggesting that we are in crash territory -- more that I'd like to not have to worry about it happening as we make this almost parabolic move that your chart showed so very clearly. In the meantime, I am waiting for the NAZ to catch up with the DOW and achieve parity:)