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

To: Barbara Barry who wrote (19320)	5/28/1998 11:46:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Hi Barbara; Re > Worse yet,will this be a sort of stealth correction that will cause premiums to erode? << this really does look like the most valid to me. I see the consolidation going on and if we do not get a big drop by the 2nd week in June my guess is that the consolidation will have run it's course and we will be set for some more upside, right now it looks like we have dropped to a slightly lower trading range, unless some really bad news hits or interest rates go up sharply we may avoid a big drop, if we get past the upcoming earnings warning period with out any serious damage we should be OK. I also see a lot of short term speculators are now trapped in this trading range, it's an odd picture to me as I now ( almost funny ) I see both BULLS and BEARS in a trap at the same time. Shucks I have to give it to the Brokers and index funds they got the know how down on this game. I am really concerned that in the long run that all the computer program trading is going to take such a slice out of the pie that companies are going to be pressed harder and harder to show enough profit to validate the prices of their stocks. The basic premise of having a stock market is being eroded with excessive volume and the cost of churning the stocks as more and more big computer programs trading baskets come on line..( take a look at all the new index funds that sprang up just last year )..this kind of action is not free. And in time will set up a condition we never really dealt with before, at least not on this scale, how long it can run I have no idea, but it will sooner or later run into a wall if they do nothing to curtail it. The new circuit breakers came at the wrong time and are subject to also allow it to happen sooner than it would with out them. I'm convinced the SEC is in bed with the Wall Street gang but the American public is going to be the one that winds up getting shafted by them both. I want to add that when it comes to picking stocks and or sectors I have Bonnie Bear book marked, while she may not be the best on SI I feel she picks better than I do , or anyone else that I've come across so far. It's hard to play some one else's picks and I don't recommend that at all, but her insights seem almost uncanny at times, and are likely worth more consideration than mine. Jim