To: Dave Gore who wrote (119415 ) 12/19/2000 9:11:26 AM From: Lane Hall-Witt Respond to Dave -- Triple psychology: Yes! This is where I really have to hand it to the pure chart readers. They don't care who's trying to psych anyone out; they just wait for signals and buy or sell on the trigger. Personally, I find that the psychological warfare is just too entertaining to ignore entirely. <G> On a more serious note, I also do think the psychological games can offer useful clues to both short- and intermediate-term trends. The overnight and pre-market manipulation of the futures markets, for example, often are quite telling. More broadly, I'm still convinced that the big money worked very hard throughout 2000 to prop up CSCO while it was distributing most of the other tech stocks -- just to hide the internal performance of the sector behind the strength of the bellwether. That's why I think it's a good sign that CSCO is crumbling now -- not because I think we necessarily have an immediate V-bottom recovery coming, but because I suspect much of the distribution is behind us now. If this is the case, then it increases the odds that we're approaching the time when we can begin basing and rebuilding the techs.
