Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Vitas who wrote (19005)	5/24/1998 3:17:00 PM
From: Robert Graham	Respond to of 94695

Yes, I think the market will remain in a trading range. If there will be a start of another bull run, I think it can have its beginnings in next week trading. But I am at this point skeptical that another bull run will happen. However, I do not think a market correction will result either. The key to my reasoning here is that we have the funds rotating their money into other stocks without taking a position in cash or bonds. So the funds apparently are not anticipating a market correction, nor are they taking positions that can facilitate one either. The funds also appear to be stepping up their rotation efforts. I wonder what this means? Perhaps the funds are also expecting the market to take off soon? But perhaps we both can agree that there is limited evidence of a downside at this point in time, other than for the negative sentiment which I think we are all aware of right now. How does this sound to you? As a side note to this topic, just before the market adjustment that we have experienced, I noticed the funds placed their money in a "holding position" in anticipation of this market transition. They moved their money into visible second tier high tech stocks. I have seen them do this before. Sure enough the market adjustment happened. I also suspected this "holding position" for some of their money in the market was only temporary, until they can decide what they will do with the money they are rotating out of stocks and they can remove their money at a profit. Perhaps the blatant signs of a stepped up rotation is showing us that the funds have made their decision which is to move their money into DJIA and S&P 500 type stocks and are agressively pursuing the rotation now. I am even seeing evidence of funds selling their positions in the techs rather than the turndown in techs being the result of just public money. So perhaps the rotation is in its more advanced stages right now. Bob Graham