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

To: kahunabear who wrote (6577)	10/30/1997 3:00:00 AM
From: Bilow	Read Replies (2) \| Respond to of 18056

I think a substantial percentage of the population believes that stocks are essentially equivalent to lottery tickets that never expire. They buy them, and only cash them in if they are winning. But don't think that this prevents further sell offs. The number of shares traded the last few days is minuscule compared to the total number of shares. I believe that only 0.6% of the market traded Tuesday, and probably 60% of that was flippers, and another good percentage was institutions. So the vast majority of stocks currently owned are sitting on pretty gains, and people do sell in fear of losing gains. Like that math a post ago, Joe G! It's about as mathematical as most of the people in this market can get. I'm looking at puts/shorts on LLTC, MXIM, and VTSS tomorrow AM, basically semi high-flyers. Any comments anyone? -- Carl

To: kahunabear who wrote (6577)	10/30/1997 8:13:00 AM
From: Joseph G.	Read Replies (1) \| Respond to of 18056

Britt, they just can't sell much, anyway. On Mo, less than 1% of market cap was traded, and much of it in day trades, round trips. If they sell just 10%, Dow will be driven to ~4,000. And, there is always a net sothing taken out of the market by retirees, brokers, etc. It used to be less or = than dividends (3 or 4%), but now div is under 2%, so there is net outflow in that. And techs (and some non-techs) are just priced ridiculously. When in 29 RCA was bid to P/E = 34, people could not believe so high P/E (with long bonds at 4.5 - 5%), now large caps got to 50 and 60. Joe