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

To: Philipp who wrote (24354)	8/15/1998 10:30:00 PM
From: Moominoid	Respond to of 94695

sort of just slowly rolling over and then falling off the cliff. I don't remember any correction like that historically or in recent years in currencies or stock markets. This correction is about gradual day by day grinding down of profit expectations. As BW says this week Q3 forecasts are falling 0.1% growth per day. It's not the sudden correction of interest rate moves or the like. Still some bad news at a fragile point could cause a sudden crash. David

To: Philipp who wrote (24354)	8/15/1998 11:21:00 PM
From: Investor-ex!	Read Replies (2) \| Respond to of 94695

Philipp, I would find it quite unusual to have a significant correction/crash without a decent counter-rally; sort of just slowly rolling over and then falling off the cliff. I don't remember any correction like that historically or in recent years in currencies or stock markets. Actually, we DID have the counter-rally from the initial sell-off from highs in the Russell and Wilshire indices. The large cap indices tried to do the same thing from April's highs, but shot off into lala-land instead. Whether this was due to fraidy-cat foreign inflows or the concerted actions of New-Era Pin-heads, I cannot say, but the charts have more or less already made the requisite initial rally that "normally" precedes a major contraction of P/Es.