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


To: bobby beara who wrote (1445)8/31/1998 5:41:00 PM
From: WhipsawMcGraw  Read Replies (1) | Respond to of 3339
 
The short position has been increasing since 1996 at a record level. The biggest reason for the inflated market is that short position. Three buyers hit the market that create a inflated bull market.
1. People who are bulls
2. People who are investing in the general market
3. Those who are short the market, losing money and buying into the the market to cover the short position.
This also brings more problems in the near future. Buy programs may be nothing more than fake rallies for short covering. If this is the case then you will see many long positions losing because of that reason. The market is not over but the over inflation is. I predict the market will move sideways for the next couple years. Remember, in a bear market there is no such thing as oversold. In a bear market there is only over bought.



To: bobby beara who wrote (1445)8/31/1998 5:56:00 PM
From: Roger A. Babb  Read Replies (4) | Respond to of 3339
 
Bobby, I have been swamped with calls from employees today wanting to stop their 401k payroll decutions from going into the stock market. Last October they increased the stock market allocation on the day of that crash. Something is different this time.........