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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (10050)	11/19/1997 8:55:00 PM
From: Liatris Spicata	Respond to of 94695

Haim- Is the bull intact? Tattered, yes, but I suspect intact (the ingredients that made this market are still in place IMO). More rough weather is to be expected, and we may well stay in a trading range of say 7300-7800 on the DOW for a while (several months). Personally, I don't think that would be so bad- these 20%+ annual increases have lead to some disturbing patterns (I wish I knew how big a role debt financing has played in the market- I just know its a lot more than NYSE margin debt) that will only make the next downturn more painful. I've been surprised at how quickly the DJIA has come back, and I'd like to know what the Russell 2000 and Wilshire 5000 have done. Not so well, I'd wager- blue chips frequently lead a recovery. Testing the lows of October would be utterly unremarkable- so far we've only tested down to the half-way point. But at least I'm glad some folks reached the startling realization that stocks can go down! Regards, Larry