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


To: pater tenebrarum who wrote (50762)5/15/2000 2:58:00 PM
From: the Chief  Respond to of 99985
 
Predicition: CPI numbers will come in lower than expected tomorrow. Greenspan will raise rates .5% and the market will rally for two reasons. CPI will indicate that his previous hikes, that are now taking effect are working.

Result- the market will "assume" that further rates may not be needed. Nas will rally "too far" once again and then correct back to a normal level , that being 3650. Dow will also take off and possibly break 11,000 by the end of the week.

Gold will again be relegated to wastepaper and the Financials will continue to rise, why I am not sure, it appears to be part of the new "paradigm". The transition of "power" back to the Dow will be complete.

the Chief



To: pater tenebrarum who wrote (50762)5/15/2000 3:01:00 PM
From: Benkea  Read Replies (2) | Respond to of 99985
 
Are we seeing some short covering by those who expected a bigger tank today ahead of the FOMC?



To: pater tenebrarum who wrote (50762)5/15/2000 3:49:00 PM
From: Jacob Snyder  Read Replies (1) | Respond to of 99985
 
thanks. great article. The charts aren't attached, though.

Since January 2000, I've become more of a trader, and less of an investor. I've still been buying the dips (BIG dips, when quality companies are at multi-year low PEs). However, instead of then holding, I've been steadily selling into any strength in anything I own. My cash level this year has, on average, been the highest in the 5 years I've been investing. I'm not going to be buying CDs. But I'll be steadily rotating into whatever is the leading company in a low-PEG out-of-favor industry. Hopefully, that will keep me making money, even if his 20-year bear market (with lots of interim rallies) happens. Uggh.