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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (761)	11/19/2000 1:38:55 AM
From: Street Hawk	Read Replies (2) \| Respond to of 74559

Interesting to note how none of this was brought up at Nasdaq 5000. Back in early March, everyone seemed to think that it was only a matter of when the Nasdaq would hit 6000 this year, not a matter of if it would do it. A big difference between this year and last year was that people last year were more bearish then they are now in fall 2000. No one expected a powerful Nov-Dec rally in 1999, but almost everyone expected one this year. The supply of equities grew tremendously over the last 12 months. An enormous number of IPOs and secondaries were pulled off. Many were giant in size. As a result of all the IPOs, a lot of lockups are expiring and the resulting insider selling kills a lot of these tech stocks that depend on a small float for trading momentum. Not much will support this selling since these tech stocks have very little fundamental value beyond "sell to greater fool" value. Now this supply overhang is acting like a giant sponge soaking up Fed liquidity. The equity market has gotten flabby, and this year, supply has finally caught up with demand. When everyone begins to realize this, then it will get scary. And we are far from that point.