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


To: Crimson Ghost who wrote (41373)2/25/2000 7:12:00 PM
From: pater tenebrarum  Read Replies (3) | Respond to of 99985
 
George, i think btw. that like today, bonds and stocks will fall together for a while, as the sentiment indicators in both are perfectly aligned for the first time in a long time. yes, bonds will be a buy again, but NOT YET. bonds may get an artificial bid in a true stock market panic, but i feel that bid will evaporate as soon as it becomes clear that easy Al is trying to print his way out of the calamity. this time, the investment vehicle of choice will be gold, to everybody's vast surprise.
however, in the near term it may well sell off some more, in a shake-out of weak hands. it takes a lot to break the psychology of a 20-year bear market, just as the psychology of the 20-year bull market in stocks is a mighty force.
btw, i expect next week to be an extremely difficult one for stocks, in spite of the oversold condition of the non-tech indices.
once again, put/call ratios have been extremely low today, as speculation on a big bounceback persists.

regards,

hb