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Pastimes : Richard Ney and the Wall Street Gang -- Ignore unavailable to you. Want to Upgrade?

To: BenYeung who wrote (154)	2/4/1998 7:50:00 PM
From: m-top	Respond to of 492

Ben, You never know for sure to what extent the MM's accumulate on a given decline. You can only make an educated estimate. I think as a general rule issues that are massacred such as these, have sold off so far so fast, that the public and institutions will buy thinking its a bargain. And it might even be true. But more importantly, particularly if you have a shorter term investment horizon, the stock is broken and has lost its sponsorship at least for the near term. I know Ney recommends buying on sharp declines but he also advises doing so with Dow or Dow quality issues. For good reason. As components in the Dow, one day they will advance again to participate in the next bull raid on the market. If you are looking to buy "dips" I'd focus on healthier issues that have not been blown out of their mark up phase. Issues that remain in a healthy uptrend but have sold off sharply without completely breaking down. For what its worth, I do not buy issues like these. Most will remain down for some time. In a bull market like this, there are too many other promising opportunities. I think the "buy the dip" traders though will soon have their day. It works well at the beginning of strong bull markets as it has with this one. Lots of people doing it these days. One day soon the music's going to stop for this crowd. As far as how high will the market go from here, It would be hard to believe the market won't be pushed to new highs from here. The psychological impact would be too hard to pass up. Don't run out and buy OEX calls, but with non-farm payrolls out on friday, I'd bet on new highs in the Dow friday. From there ?? John