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

To: Grandk who wrote (47337)	4/19/2000 5:04:00 PM
From: Crimson Ghost	Respond to of 99985

Don Hays also is talking about 2900-3000 as the low for the NAZ in THIS phase of the bear market. But he is looking for an ultimate low well under 2000. Seems to feel that value stocks will not go down too much though. He argued that the P/E ratio of the Value line average was 10 at the bottom of the 1987 crash. And now around 13-14 with interest rates much lower than 1987.

To: Grandk who wrote (47337)	4/19/2000 5:31:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

JK, there definitely was only a little fear at best. AND it was a great demonstration showing that liquidity can dry up to such an extent that it becomes nearly impossible to sell large positions. i think several institutional investors were jolted by this fact last week, and may try to sneak out in the current retracement rally. like i said, the RYDEX ratios are right back at extremely overbought levels, with the tech component at roughly 81% now. Bobby said it already, at important bottoms, the tech component tends to shrink to 20%. regards, hb