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


To: William H Huebl who wrote (26738)9/7/1998 9:13:00 AM
From: Monty Lenard  Read Replies (2) | Respond to of 94695
 
Hi Bill, I heard someone the other day on this thread mention Zweig. I pulled his book from my library this morning and was re-reading some of his "indicators".

Here is the 3 things he says virtually guarantees a bear market:
1) Extreme Deflation
2) Ultra High P/E's
3) Inverted Yield Curve

He elaborates on how he calc's these but generally, we have had all 3 in place (not sure about the extreme deflation---yet).

The inverted yield curve had been in place but don't know if that is still true.

The other interesting observation he had is that there are 2 holidays that historically extremely bullish(more than any of the others):
1) New Years and
2) Labor Day

Now, how do we view Friday's activity:

1) Bullish since it rallied from being down 180+ DOW points, or
2) Bearish since it closed down rather than up?

Monty

PS Is there a link where the yield curve is displayed without taxing this very tired brain?



To: William H Huebl who wrote (26738)9/7/1998 8:20:00 PM
From: GROUND ZERO™  Read Replies (2) | Respond to of 94695
 
Bill,

I agree with you, this is why I'm comfortable with this thread and the gang that hangs around it. So, here's my plan. I will let the coming rally fizzle out and wait for a retest of these recent lows in a few weeks. If my indicators give a buy signal at that that time, I will be buying for the next bull market, which I suspect might begin sometime within the next two or three quarters.

Of course, the above is subject to change if/when the fancy strikes me.

Enjoy.

GZ