To: Donald Wennerstrom who wrote (2210 ) 9/7/1998 3:14:00 AM From: Kent Sarikaya Read Replies (2) | Respond to of 2754
Don, I'm convinced more than ever that the small caps day is near. I think there is a pattern to the madness that is the market. Your charts Don, will help us see this sooner than later. One thing I am convinced of, is that there are a few individuals out there who really have a handle on things. I think the street has it's own. They know where money will flow. They move and everyone else follows, from institutional investors down to the small fries. By the time us small guys really get a sense of which way things are moving the market will have moved 20%. I can assure you that none of these individuals are anyone we have heard about before. They don't need to be known. They don't try to control the economy domestic or abroad. They don't need to. They know that money needs to flow, prices have to go up and down. They don't have to manipulate anything, they know how to read data and know when to move. They move quietly and quickly, their movements are noticed by other smart individuals and so and so forth till the average Joe has heard or seen the trend. They move way before the instituions do. They don't buy in huge blocks. They buy when others are selling and not enough to effect the price like when an institution moves in. I'm sure they are buying now, quietly and in small amounts. Slowly adding to their positions. They will be invested well before the institutions start buying and way before the average Joe. They are not the Warren Bufffets or George Sorros, they are smart enough to know that life is short, why work when you can use your brains and make a fortune in total anonoumity(sp). Before we had this massacre in small caps, I heard word on tv or from reading about was about to come, but it seemed very unlikely... things were just too good for technology. How could something so on track so hot go wrong so quickly? Well, it did and for so long. Well the same kind of words have been heard and read about the coming of age for technology and small caps again. I've posted the time frame I had heard about many times on this board. it called for a big decline in big caps that would come by Novemeber and the re-birth of our stocks following. The turn will come when it looks like it will never come, the moves will happen in secondary stocks first so it will go largely unnoticed for sometime. I heard this weekend that if the DOW was calculated based on the decline in the secondaries, we would be sitting at around 5500 instead of 7500. We have had a major bear market in these stocks and it wasn't talked about too much. The only ones who seem to know about it are those who owned these stocks like us. We just went through a much publicized major bull market that saw the Dow go from 4000 to 9300, how many of us have felt we have been in such a market owning small caps? Not many, I bet. Well the same sort of thing is going to happen in reverse. We are going to see a stealth bull market for us, while the world wide turmoil takes it's tool on the rest till mid next year.