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

To: Pink Minion who wrote (186)	2/23/1998 12:21:00 PM
From: Robert Graham	Respond to of 492

Market is showing great strength and the institutions are still moving money into the stock market. So the market IMO will continue up. This recent selling activity by the market when it made its new high was predictable. The trick here is to see if the institutions are taking advantage of market selloffs to continue their purchasing. This is important since the institutions are attempting to move allot of money which impacts the price of the stocks they are purchasing. Institutions cannot afford to chase the market up. They will tend to wait to be more aggressive during market selloffs where there is a ready supply of stock to purchase. Evidence of this institutional purchasing is to be found in the very mild market selloffs we have had so far. This volume purchasing cut market losses from where I think they would of been much greater. I see an unusual degree of market speculation and exuberance up front. This can lead to impressive gains in the market when they do happen. But this market activity can help engineer the next market correction down the line. As I stated earlier, this type of market psychology is what is normally seen at the end of the bull market run. So I will be careful and short term thinking in my approach to this market. However, with the amount of money that is being moved around by the institutions which represents the public's interest in the stock market, the market top will take a period of time to unfold. But this is what will be misleading to many. This will provide plenty of evidence of a bull market to those who are looking for this to rationalize their continued involvement in the market. This will make it easier for the big money like the institutions to move their money out of the stock market. Also this upcoming market situation will make it easier for any manipulative forces in the market to prevail in fooling these eager speculators into believing there are further gains to be had in the market. Do not forget manipulation can also come from the big money. They know that they money they are moving around impacts the market. They can intelligently time their sales and how it impacts the market to their benefit. They can act in a way as a group in their efforts. This is because market price will provide leadership for this group who have shared goals, and they will respond to what they see how the market is acting. So they do not have to be explicitly acting in concert for them implicitly to have the same effect on the market. I think he most important question is has the market top already started to unfold. Only time will give us the information we need to make this observation. Bob Graham