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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: SE who wrote (48925)	7/31/1998 10:49:00 AM
From: John Lacelle	Read Replies (1) \| Respond to of 58727

SE, I saw some interesting data on the "business report" last night. They were saying that the indexes remain high, but that the market is actually a bear now. Data provided: 70% of NYSE stocks are down 40% from the 52 week high. The DOW remains high just because a few of the companies are holding it up. The NASDAQ and S and P 500 held similar stats. From the Elliott Wave theory, the DOW is in wave 3...I am not too versed on the theory but don't they say wave 5 in a down trend is the "big Kahuna" and that breakout occurs after? Market sentiment: All of the market sentiment meters are turning down after hitting their high early this year. Cash flow: In bubble markets, cash flow must continually increase to hold the ever increasing valuations afloat. Cash flow is steady for the 401(k) industry. This is another bear indicator. Market Uncertainty Factor: Markets always hate an uncertain future. This is clearly the case with Asia, Clinton, and Currency markets. Rumor has it, that Red China is going to devalue soon which should trigger another major slide in currency throughout the region. Summary: Clearly the bear is here. The question is: What is everyone going to do about it? -John