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

To: Tommaso who wrote (767)	11/19/2000 11:57:20 AM
From: tradermike_1999	Respond to of 74559

We had another wild and volatile week. Up 100, down 100. You know the drill. A lot of people were hoping that the Federal Reserve would give the markets a gift and signal a change in bias. Instead they gave investors a black eye and warned that they feared inflation more than anything else, despite signs that the economy is slowing "at a pace below the productivity enhanced rate of growth of its potential to produce." The markets promptly sold off and put in a small bounce Friday afternoon. The path of least resistance is still down. The Nasdaq has yet to put in a real bottom so we should expect another test of the 2850 level soon. I'm looking for a rally as an opportunity to short several issues. A rally could come at anytime with the possibility of a resolution to the political election mess between tweedle dumb and tweedle dee. Any rally will meet stiff resistance at the 3300-3500 zone. The big time of testing will be when we see the magnitude of the fall after the rally. It will either bounce again off the 2850 support or else fall through. A close below that will create the risk of another Nasdaq crash that could bring the Nasdaq down to 2450. Alan Greenspan and the Fed won't cut interest rates to save the Ameritraders and the margin nuts so don't think they will bail it out. It will be pure hell for Stuart. But his disappearance is what the market needs to create a real bottom.