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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: kleht who wrote (42926)	8/24/2001 5:59:11 PM
From: stan_hughes	Read Replies (1) \| Respond to of 100058

kleht - The biggest flaw in that analysis is that they only went back to 1992. For me, the "October Massacre" as we so fondly called it has been an annual event that I recall rather vividly going back well into the 70s when I first got into this game. The mushrooming of mutual funds has also greatly contributed to making October into a tax-selling period, second only to the retail tax-selling we see in December. In a year when most stocks are down YTD, it will be the same old, same old - the battered will get beaten up even more, and the few winners will get haircuts as offsets. I find it extremely difficult to contemplate that enough buying pressure is going to materialize at these P/E levels to absorb that kind of systemic liquidation. Therefore, the markets are predisposed to fall during the September-October period, for this reason alone if nothing else.