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: mister topes who wrote (8124)	9/28/1998 3:21:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 42834

Ralph Acampora's market outlook (as of today based upon Friday's prices): ________ Prices as of close on 9/25/98 U.S. Stock Market Outlook Near-Term Last week the DJIA and the S&P 500 crossed above their near term resistance levels of 8100 and 1030, respectively. We previously stated that such a move would enable us to target further upside strength to the next resistance areas on these two important blue chip averages. Hence, we offered a potential near term advance to the 8400/8800 level on the Dow and 1090/1110 level on the S&P 500. A series of higher lows on these indices over the past several weeks and the market's ability to absorb increased negative news, underscores the strength of the recent lows (7400 on the DJIA and 940 on the S&P 500). Take advantage of this upward momentum and trade on the long side—but be very selective. Stock picking, not market timing, is more important at this juncture. Intermediate Term The recent trading range between 7400 low and 8100 high on the DJIA is expected to expand upward to the next resistance level in the 8400/8800 area. This new and wider trading band will see an increase in price swings. It will also coincide with the October period, which itself, is historically a difficult time in the market place. Hopefully, this anticipated rally is broad enough and carries as high as we expect, then the subsequent October decline need not break below the Dow's low of 7400. Long-Term The year 1998 is important to us because we are big believers in the ‘Four-Year Low Theory'. Historically every four years the stock market makes a major bottom—a time in which one can buy stocks for the long term at reasonable values. The last time we had such an opportunity was in November, 1994 and the time before that was in October, 1990. The good news about the market's July to September 1998 decline is that so far it has created quite a bit of value, especially in the large capitalization area. It is now time for those who have a long term perspective to start picking through the rubble of the past several months and identify those groups and stocks that hopefully will bottom out in the weeks ahead and will become new investment vehicles. Start your search now.