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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (6212)	10/28/1997 7:22:00 PM
From: White Shoes	Respond to of 9285

What I learned in the past 48 hrs. (admittedly not a lot of shorts on the go at the moment): when you don't know what to do, do nothing. It's working so far.

To: Roger A. Babb who wrote (6212)	10/29/1997 9:44:00 AM
From: Franco Battista	Read Replies (1) \| Respond to of 9285

Roger, I just had a very interesting chat with my broker. She claims that a lot of the money that came into the market yesterday was money that was sitting on the sidelines, money came from all types of investors, some small investors but mostly institutional. It was their busiest day ever with eberyone chasing prices as stocks went up. Most investors went in with market orders after failing to buy with set price orders. This explains why prices drove up so fast. They are expecting the buying frenzy to continue in early trading but think that the market will end the day in negative territory. The most interesting thing the broker told me was that she knows from her own clients and fellow-broker clients that very little of the money sitting on the sidelines was used yesterday! Many of her clients placed orders that were not filled. She says there is a lot of greedy money sitting on the sidelines waiting for the type of correction we just experienced. This tells me that we are probably very far from a bear market, and that we can expect a repeat of what we saw yesterday in a future correction. The next correction may come after the fed raising of the interest rate, and I would expect the same plunge followed by a sharp rise as sideline money kicks in. It would probably take several consecutive raises of the interest rate by the feds to finally break this kind of market pattern, we would then have entered into the bear market.