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

To: skinowski who wrote (128427)	1/25/2006 1:30:03 PM
From: Rarebird	Read Replies (1) \| Respond to of 209892

>>small caps are likely to fare better than the large caps - like the DOW... at least for a while<< The small caps are in a bull market while the Dow has been in a very long period of consolidation. The last few times the Russell 2000 hit new all time highs, it has sold off very nicely the next day. That tells me that investors/traders really don't believe it is in a bull market. Yet it continues to come back and hit new all time highs. So, it is in a bull market. But very few want to believe it so they sell the next day. Most think we are in a cyclical bull market from within the context of a secular bear market. But I don't see any evidence for that view once you look beyond the Nasdaq, S@P 500 and Dow. I could see a spike in the 10 year bond causing problems. But that won't happen until the Fed stops raising rates. Till then, I continue to see clear sailing for small cap stocks. Unless the Iranian situation gets way out of hand and we go to war, the bullish coast is clear till March. After all, even in a mild corrective bear, I'd want to be at least hedged if not net short.