To: ViperChick Secret Agent 006.9 who wrote (12793 ) 7/22/1998 1:42:00 PM From: Robert Graham Read Replies (1) | Respond to
Take note on how much market has dropped. Market has been in "weak" hands, which is the public speculator I have mentioned. They are responsible for the very exuberant tone of recent market. I find that public speculators who allow themselves to become to bullish to the point of being as a group irrational, where multiple stocks on same day go up 10 points on heels of very large runup of NASDAQ and key companies like INTC missing estimates but still goes up to name examples, can flip on a dime. Speculators have been playing the larger techs like they did the Internets. This is when the market is the most vulnerable. That is why this type of market action often happens right before a market turn. All it takes is negative news for the speculator to sell. And sell they did. Even dips were not being bought into today. LU blew past earnings estimates in an earnings surprise just to encounter a sell off. Greenspan comes along and burps, and the market falls. Starting yesterday, the market has fallen 260 points. The market has blown off Greenspan in the more recent past, having heard it from him before, so what is different this time? So when I saw the market events of the past few days, I decided to stay out of the market. Irrational exuberance was taking on unprecedented levels. I was waiting to be proven wrong by the market continuing its move up, like I have been proven wrong on some of those stock calls that I have recently made where the stock went up a large amount just to continue up in its very overextended position. Amazing!
