Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (11759)	8/30/2001 10:49:39 AM
From: Perspective	Respond to of 209892

<Funny the effect of a lower dollar, negative inflows, and overowned equities...there is not a base of buying here..just traders scalping...for a few hours or few days, and shorts covering...> Yes, you can see that everywhere you look. I frequently examine the market by categorizing the available sources of purchasing power. The mutual funds can't buy because they are under sustained redemptions and are running cash levels at near-historic lows. Insiders remain huge sellers, with no interest in buys here due to poor economic outlook and continuing unsustainable valuations. The home investor has virtually exited the market as seen in the online trade statistics. The only remaining buyers have been foreign interests (gotta recycle that trade deficit somehow) and, of course, short covering. With the turn in sentiment on the dollar, that leaves only short covering. The implication remains that all rallies will continue to unfold as corrective behavior, with the impulses carrying gradually to ever lower lows, until you can swing another party besides short-sellers over to the buy side. Hmmm... NDX prints new lows... Was that the sound of a trendline cracking? BC