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 : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (3477)	7/15/2002 11:47:48 AM
From: t2	Read Replies (1) \| Respond to of 30712

Justa, There is a clear sign that international investors are bailing out of the US markets..when SnP and Dow have similar declines. SnP500 investing is the way non-Americans play the market. The relative strength of the Nasdaq could also be relatively lower level of participation by foreign large institutions. Can one make the case for some sort of capitulation? I see Tom McManus of BAC increasing stock allocations today and reduced bonds further..instead of taking it out of cash. He is known for buying the lows...back in April 2001 and September 2001. The only bullish case I can make for the markets really is the weak dollar; it might be time that the weakness in the dollar will create a MAJOR short term surge in stocks...a flight out of US bonds/cash..which are losing value. Stocks are not totally tied to a country's currency unlike bonds/cash. A panic selling of bonds will push the DOW up (along with commodities). I see the shorting the dollar currency as the best trade; stock market is too unpredictable short term with a dropping dollar. btw--weak dollar good for large cap stocks has not played out yet.....but it might start if we are seeing some international capitulation out of US stocks in the past few weeks.