To: BlueCheap who wrote (334 ) 10/21/1997 9:31:00 PM From: TechnoWiz Read Replies (1) | Respond to
Malcolm, I was about to respond by alluding to the fact that maybe most of the tax selling is already over, when the other guys did it for me. Given the way the transports came back from a near record selloff on Friday and with opening gaps in most indices today that were quickly left behind without so much as a retest, I am beginning to form the opinion that we are about to begin a major new upleg in this market. An upmove that should lift all boats, including FNTN sharply higher. Barring further sudden negative surprises, mkt has the feel it is about to go parabolic on the upside, with spectacular effect. Could turn into a mania between now and the end of the year. A test of todays lows may emerge in the next few days, but if this is successfully rejected, stocks could explode. With a lot of well known institutions having telegraphed the fact that they are reducing their holdings in stocks, they could be left (embarrassingly) out of the market. Institutions and mutual funds with excess cash will have no choice but to deploy or re-deploy these funds. Remember IBM rallied $70 (split adjusted) off its last base and it looked awful high back then.This new flag formation in IBM looks even more bullish!
