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: Philipp who wrote (23797)	8/11/1998 4:50:00 PM
From: Philipp	Read Replies (1) \| Respond to of 94695

Simple question: was today a good day or a bad day? a good day? Undoubtedly analysts will come out tonight/tomorrow arguing that today's morning sell-off was the sell-off that discounted the Asian situation. Bounce-back was encouraging (manipulated or real) and the key support at 1060 (SPX) largely held (well, broken twice but not significantly). I am sure that the bulls will come back to their pastures claiming that the correction is over. They were remarkably quiet/restrained over the last week. Apropos Asia: there has been hardly a day without bad news from Asia. We are due for a day without bad news. Also note that Asian markets have started to discount a Chinese devaluation and that, when a devaluation has already been discounted, the actual devaluation is often accompanied by a huge rally (even in dollar terms). a bad day? Was today just the test run for the real thing, the real BK? One thing is certain now: if today's levels are broken again significantly in the near future, this market will go into free fall, accompanied by panic selling. And then we will know (again?) what free fall means. Someone on this thread said that he hopes that 8000 will hold. In a BK? Perhaps 7000. Probably 6000 (in the first leg), but at 8000 the market would only be slightly less inflated than it was at 9300. I don't believe that anyone on this thread or elsewhere knows what the immediate future will be. I think that we are still preparing for a significant correction (30% +), but the market could be up for a few days from here onwards. Good trading to all, Phil