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: Oeconomicus who wrote (20498)	6/16/1998 1:11:00 PM
From: P.T.Burnem	Read Replies (2) \| Respond to of 94695

It did spike up after the "market event" of last October, but that was well above current levels. Sure. If we have "learned" anything since last October, it is that a market that sells off in reaction to the Asian turmoil bounces back with a vengeance. There is not much to worry about. Let's ride this one out and save on capital gains taxes. This is a good example of a market changing its behaviour from one cycle to another. The Dow has dropped some 500 points off its high, yet few money managers are worried. The Dow drops 200 points in a single day, without much of a bounce. A bit of worry but still no fear: the VIX is only half of what it was last October. Here's the rest of the story. The market continues to trend down in listless trading. As the Dow gets close to having lost -10% of its value, more and more investors begin to wonder whether this is indeed a 10% correction or perhaps something bigger. The pace of selling picks up, put premiums and the VIX surge. The market either bottoms out (most likely) or crashes. PTB