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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: High-Tech East who wrote (13830)	7/27/2002 2:02:24 AM
From: J.T.	Respond to of 19219

The equity risk premium has gone up dramatically as a result of international terrorism, increased spotlight on daily middle east war ravages, corporate fraud, insider trading, accounting scandal, and the option expensing conundrum for starters. Against this increase in perceived risk to own stocks, the market has adjusted from the failed V-shaped recovery in the economy early this year and subsequent market top in March, to a new question how real is the threat of a double dip recession. As a microcosmic example, you and I are like the market in this tug of war struggle you see double dip as inevitable and I see double dip theory as burnt toast and snowballs chance in hell. The market is trying to factor in all these elements of risk as p/e multiples get compressed back to reality. And just as we had market chaos in the asian contagion in 97' and LTCM debacle in 98', so to today we have all the above risk factors that make it difficult to remain in the market. And the shorting public is biting and chewing on all this increased perceived risk hook, line, and sinker. Meanwhile, the members are trying to do that altruistic favor (<g>) of taking all the worthless shares off the hands of the public who have great disdain for stocks. lol ...only to distribute these worthless shares today at significantly higher prices down the pike in the new market euphoria when it will again be 'safe' to get back into the market again. In other words, fear is good. And in chaos lies opportunity. Best Regards, J.T.