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 : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: stock bull who wrote (7689)	9/6/1998 12:04:00 AM
From: DD™	Read Replies (1) \| Respond to of 42834

sb: My gut feeling is that the markets should open up in the morning, based upon the favorable interest rate comments of Greenspan. Make no mistake about it though, this follow-through from Friday's rebound will be short-lived, as the institutions will use the strength to further unwind long positions. We are in a bear market, there is heavy distribution continuing, selling which began in April. Last Monday after a weak so so morning the market turned ugly in the afternoon and sold off in waterfall fashion. By the end of the day the DOW was down 512 points on extremely heavy volume, extremely negative Advance-Decline numbers and 1183 new lows. On Tuesday morning, after a small opening rally the waterfall continued down to DOW 7400, an additional loss of 139 point before a rally from an extremely oversold position set in and the market recovered to gain 288 points for the day. Tuesday's volume was a record at 1.2 billion shares. The A-D was positive by 796 issues, not big for the size of the advance and new lows were around 900. For the remainder of the week the DOW was down each day while the A-D line was overall less negative and volume began to subside, but was still very heavy. For the week as a whole the DOW lost 411.43 points (5.11%), the S & P 500 lost 5.19%, the NASDAQ lost 4.46%, the S & P Mid Cap lost 2.74%, the Wilshire Small Cap lost 3.52% and the Russell 2000 lost 3.20%. On average the A-D line was negative by 438 issues daily, new highs averaged only 14 per day while new lows were a staggering 633 per day. Late in the week the secondary averages recovered more than the blue chip averages. This has given some analysts the faint hope that a bottom may be near. October will be a month of cleansing, as weak hands will be frightened into selling during this the "Crash Month". Be patient, be aware of this opportunity, for it may be the opportunity of the decade to buy stocks at historic low valuations. DD