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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?


To: Jibacoa who wrote (18682)7/13/2006 8:20:24 AM
From: Rarebird  Respond to of 23958
 
>>The NAZ erased all of yesterday's gain & a little bit more<<

The NASDAQ has been hit much harder than the blue chips, reflecting their sensitivity to deflation. Yes, deflation. When money is withdrawn from the system, it is literally deflation and technology companies are in a constant struggle to maintain profit margins in an industry with double-digit deflation annually. As is always the case, investors' reactions are to sell first and consider buying back later. Right now, we haven't reached the end of the "sell first" period.

Oh, by the way, the Bank of Japan also is holding billions of shares they bought to help resuscitate the banking system. Guess when they're planning to start selling those shares on the open market? If you've followed Terry Laundry's Advance-Decline T, you already know the answer: October 2007. Expect a crash.