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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (18914)	5/21/1998 12:57:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 94695

You make some very interesting observations here, particularly how the market can spike upward on non-events when there is pessimistic sentiment present. I also agree that the market on Friday's tends to move opposite of the predominant trend, perhaps in an uptrend we see profit taking and in a down trend we see short covering. But I do believe that the traders in the market tend to close their positions for the weekend, where there is enough of them doing this to make a difference. With respect to an extended weekend, I think this effect is magnified. This is my unscientific observation over the years. I agree that we have been in a distribution phase. The funds will need to find a place for their money even if for the short term during this transitional period of the market. I think there has been evidence of where this will be as seen in yesterday's rotation toward the more defensive stocks. This may include additional monies being placed in bonds. Time will tell. I want to say one thing here. As long as the funds are not stepping up to the plate in purchasing stock through their normal sector rotation efforts, the market will go nowhere. No bull rally of any strength can develop without the participation of fund money. So the "ball" is in the mutual fund's court. Bob Graham

To: Haim R. Branisteanu who wrote (18914)	5/21/1998 7:33:00 PM
From: Robert Graham	Respond to of 94695

I thought some of you on this thread may find this interesting. There is an article from today's the.street web site that talks about the profit taking experienced today as predictable pre-holiday selling, even quoting one market professional who called this selling "classic" where as far ass this extended weekend goes "anything could happen, and investors and traders don't really want to go long over such a long weekend," The article went on to say among other things that there may be rotation on a daily basis which will frustrate investors who are taking a longer term approach to the stock market. So this should leave no open questions about what normally happens just before an extended holiday weekend. All of you have experienced it now. I refrained from copying the article due to copywrite concerns and how Cramer is actively attempting to make the.street into a financially thriving entity. So I just quoted the market professional the article quoted. Now, where did those "exuberant bulls" go to and what is thier story about this week of the "bull run" that wasn't? Or is this "on the nose" projection now going to happen NEXT week? I hope they do not take my ribbing of them too seriously. Bob Graham