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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: MJ who wrote (2947)	12/23/2004 6:59:38 AM
From: Vendit™	Read Replies (1) \| Respond to of 8752

MJ, I very much liked your story about Grantville and your little girl and the newspaper! I too have one remaining child at home, a boy fourteen. As a toddler he used to sit in my lap and watch me day trade for hours on end. Eventually I bought him shares of AOL and other high fliers with his Christmas money and allowance and then built him a portfolio online so he could track his investments. Even today he asked to see how “his” stock market” is doing. His original $150 is now worth about $2,800, without trading it. Back to Grantville for a minute; allow me to explain why he may be moving towards the cautious side of the fence. Before you look at this five year chart of the NASDAQ and study the stochastic oscillator position let me tell you that it is perfectly normal year after year for the markets to collectively run up in December and into January followed by a correction that will sometimes last until the following summer months. The following chart is the NASDAQ composite viewed in weekly time frames over a five year period. 139.142.147.218 As you can see, all indicators suggest that the NASDAQ is well over-bought and at the top of this latest leg so we are about to enter a short or falling market period. A correction back down to the 1800 level looks to be about right by next Spring. (But this is to be expected). Reid