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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (24223)	1/31/2003 4:47:16 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 57110

The Worden Report (Thursday, January 30, 2003) Without Opposition Every day more individual stocks look as if they're going all the way down to “test” the October low. Almost all of the “Generals” - the giant tech stocks - look as if that is their fate. And it doesn't look as if the process is going to take long to play out. Despite the precipitous decline, I do not believe the market is oversold. The problem is that the October low, in terms of the SP-500, is a triple bottom. Triple bottoms will usually fail. When a stock price returns repeatedly to a low, it uses up the demand at that low. That's the theory anyway. Eventually it sinks through without opposition. I believe that the Iraq situation is providing the overwhelming impetus to the decline. Unless Saddam and close buddies decide to accept growing offers of a retirement in paradise, this is going to stretch out, and I don't see where the market is going to find a source of strength. But if Saddam and gang do decide to skedaddle, woe be to the shorts in volatile stocks. It is a dilemma. I believe the best protection is to stand aside. That's a personal decision for each trader and investor. All I wish to advise is that it is no disgrace to protect yourself. The stock market is no place to show off. -DW