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

To: Haim R. Branisteanu who wrote (51378)	5/20/2000 10:30:00 AM
From: Stephen M. DeMoss	Read Replies (4) \| Respond to of 99985

Haim, Seems to me all the analysis on this board is technical in nature. Isn't it true that at a market bottom, everything will be 'pointing down'? Seems to me that before the strong rally last Oct., it looked foolish to go long, as it does now. Rarely are bottoms 'clean and neat'. When the reversal comes, it ignores the ugly chart patterns etc. I am self-employeed and business is booming. If it is true that the economy is also very strong, it is implied that real wealth is being created. My 'non-technical' question remains, "WHAT DO WE DO WITH THIS WEALTH?" Because of the markets present trend, I am starting 2 new side businesses with the extra cash. However, they too should create more wealth. At some point the wealth that is being created HAS to be invested. Where are we to put it? I contend that the market will be the ultimate resting place for these monies and thus you have to be bullish on the future of the stock market. It is a real dilemma for those in business who have made monies that they have no use for. If this 'non-technical' aspect of the market is not considered, I think those short will be hurt badly eventually. You can't have both a strong 'overheating' economy and a crash in the markets (my contention). Thoughts? Steve D.

To: Haim R. Branisteanu who wrote (51378)	5/20/2000 1:52:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

Haim: I suspect one signal of a market bottom will be a big drop in the old economy. No way will market bottom with Dow over 10,000 and the financials looking absurdly overvalued in many cases. This overvaluation will be even more striking when the economy starts to slow. BTW, with Bush now pushing to invest social security money in the stock market, both parties have an interest in a strong market coming into the election.

To: Haim R. Branisteanu who wrote (51378)	5/22/2000 9:17:00 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

Haim, yes i noticed. some of the put buying was related to expiration roll-overs of hedges, but nevertheless, i got two buy signals late last week based on my p/c based indicators. at the very least that should result in a bounce-back as you suggest. overall the sentiment data are mixed...more bullish than bearish though. meaning we are approaching a low in time, if not yet necessarily in price. it seems that lately sentiment keys off the Nasdaq, completely ignoring the relative strength of the rest of the market. regards, hb