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To: Peter V who wrote (3303)	9/23/1998 11:08:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 14427

take it w/ a smile. Beebs asked me about the strong internals today and I responded w/ this below. i thought I'd post it... The internals should look good for a few days, but they won't STAY good. That is the key. Consider that all stocks have been going down over the last few months. At some point in the bear mkt rally (near the top) they all rally as if they're going to break out of the slump, and then they dissappoint and all bomb together. Similarly, in a bull mkt you get corrections where the A/D line has been good for so long and then the mkt takes a downturn and it goes severely negative as all stocks sell off. Does that mean a bear is imminent if the bull is still intact? NO! What happens is the bear doesn't appear, and you get a HUGE rally like we did last Spring. Last Oct new lows shot up and Declines shredded advancers every now and then, but the majority of days were basically positive. Think of this bear mkt "correction" as last Oct except that the huge rally will be down. Soon it will be over. tomorrow will be VERY telling. we should have a little follow thru, but it should be weaker than today. My guess is under 100 up. Maybe even flat but it doesn't matter. Keep in mind that this rally is even weaker than the last Al rally we had. The mkt CANNOT go down w/out squeezing out most of the shorts. We have been doing that for the last week and shredded alot of them today. I guarantee you that most DELL, MSFT and CSCO shorts ran for the hills and the YHOO shorts have filed for bankruptcy. I would have ran too if I didn't own Jan puts. (G) Take a look at any historic top Japan, Hong Kong, 1929, 1987. they all have this rip-roaring rally before the DUMP. if you don't get a rip-roaring rally, you DON'T dump. I'm giddy w/ glee that we pulled this little stunt today. It clinches the bomb for me. G and MER are the keys for me. G could not rally back thru its neckline today and had weak vol. MER is not even close to its neckline that it blew thru weeks ago. These stocks have been leading the mkt CONSISTANTLY for the last couple months.