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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (36424)	3/9/1998 7:19:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 58727

Lisa, I'm short the market expcept in a few exceptional cases. I agree with the Briefing commentary, indeed I think I've written it a few times to people who feel this market is just about to take off. However, there is something I'd like to add to it. This market is still receiving good amounts of money for long term investment, its still a market that represents a well employed and productive and spending economy. All these things have made it sanguine of success. Some have, like the Briefing article, said that we are in for it given valuations.. which I agree with in principle. Here's the rub, most all rollovers are from rising interest rate fears or from central bank actions to curb money supply. That's not going to happen in the near future so what were having are sector decimations, crashes that jump on one sector then another as mini-corrections. This is significant, an index can float much higher as elements within it sell off then gather steam again... compared to an overall interest rate induced selloff. In '87 it was interest and currency, a combination that affected most stocks at the same time. Yet this is as severe when a sector like semi-conductor stocks sell off. Those who owned DELL and CPQ these last few weeks know as brutal a correction as had the market dropped a thousand points. Look at the correction in the oils, the drillers, which sector will get it next while money then rolls back in to recover the fallen. It is possible that one sector will spark a few others to correct at the same time and that will pull the Dow or S&P off 8-12%. Jim