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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (6979)	3/18/1998 2:23:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

I have two things to say related to this post. One observation is that a look OUTSIDE of the techs would be worthwhile. There is money that continues to be moved into the market which the DJIA and the tech indices do not represent well any more. I am not saying that these indices are not important. But when these indices are dropping there is still allot of money being placed into stocks where other indices such as the S&P 500 better portrays this movement of money. Also, IMO only interest rates over 6% will be a concern to the market. But we saw what happened the last time interest rates moved above 6%. This caused money to move back into bonds. Foreign money seeking attractive interest rates can be a significant part of this. I do not think they can find more attractive interest rates elsewhere (with comparable risk) in their search for a "safe haven". So the connection between bonds and the stock market is not as rigid as it has been in the past with periods of time now where the stock market and the bond market has actually moved in opposite directions this year. The point is that there is allot of money to go around. Once the available money is for the most part fully invested by the funds, then the character of the market will change. Perhaps at this time we will see a market consolidation or even a correction. I do not know. But I doubt if we will see a market correction before this happens. Bob Graham