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

To: Rational who wrote (9180)	11/24/1997 12:33:00 PM
From: Defrocked	Respond to of 18056

Here's one for the classroom, Sankar. I believe markets often trade toward "maximum pain" which, IMHO, is currently to the downside. (I can not buy stocks here because I cannot understand where the unanticipated "good news" will come from that can drive markets higher and that has not already been factored into existing high valuations. BWDIK.) techstocks.com (Please feel free to recast my theory in a Lucasian framework. Sometimes I employ superscript and subscript exclamation points (!) when investors are surprised by the market and need Vaseline treatment <irreverent g>) Now that we have rallied back to pre-Oct.27 levels, other shoe may begin dropping in the Far East, that 16-ton Bozo-the-Clown shoe, right on Japanese equity valuations, for a testing of the 14,000 level. If the Japanese banking authorities do not quickly clean up their balance sheets, the markets will do it for them. Still a lot of risk not being priced into US equities yet IMHO. Yamaichi is probably not the only bank in Japan using Cayman Island facilities to hide off-balance sheet transactions. Just a guess.