Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (6521)	10/29/1997 9:53:00 AM
From: Cynic 2005	Respond to of 18056

To all, after a lot of brain burning thinking, here is my take on what might happen in the next few weeks. The shake-out is not over yet, IMHO. The main reasons for continued shake-out scenario is that an overhead resistance built by psychological factors - there are several investors who are happy to lock-in the remaining gains in the market and some are eager to cut losses. Whether the remainder of the shake-out will result in a BK or not will depend up on these things: 1) evidence of weakness in leading indicators (I know their reliability is a big issue.) 2) further shake-out of foreign markets, especially europe and latin america 3) extreme strength in bond market (yield below 6% is a death-blow to the stock markets.) 4) dollar drops 5% or more against yen. On the other side of the coin, in the absense of any of the above and a DOW close above 7700, we are off to another big-blow off top ~8500. Joe's magic number of 7600 is very vital. But, is is possible that a close above 7600 can give false signal and hence I said 7600. -Mohan