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 : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: M CAHILL who wrote (1168)	8/19/1998 2:15:00 PM
From: Gwolf	Respond to of 3339

The rally will probably become very selective and in short spurts. I just happened to reread Arch Crawford's letter last night and I think his description may be very much on target. He sated that he is looking for a head and shoulders pattern to form before the big decline. If you look at a chart of the S&P right now you will see a left shoulder and a pointed head, all we are waiting for right now is the right shoulder. According to technical analysis these right shoulders are usually weaker than the left shoulder.What usually happens is that the leaders rally to some degree in that final stage while the rest of the stocks in the average stocks are floundering, so the averages don't really go to far. One other thing that Crawford pointed out is that external events from Asian could cut this attempted rally short at any time. I think our rally will be in bits and spurts and lead some stocks higher but most will be meet with a sigh of relieve that the stock has come up somewhat and selling will ensue. Gwolf