To: dennis michael patterson who wrote (16302 ) 10/3/1998 10:32:00 PM From: Lee Lichterman III Read Replies (2) | Respond to
Dennis, did you see my post on the TSO thread. I have to admit I am confused at the moment. I saw many signs of bottoming for the short term and am actually looking to enter on the long side (short term long) as I think many stocks, the OEX and S&P 500 have hit short term bottoms as explained in that post. There was actual fear in many stocks for the first time in recent history. High volume selloff then a bounce forming hammer bottoms. The only stocks that look like they haven't participated in these drops are DELL, INTC and some of the other street favorites. Most of the smaller and less "cult" followed stocks have dropped dramatically with the first to drop barely participating or going up during the last few days market drop. I think this is a scaled drop with certain sectors each taking their turn by order of size and type of investor holding the majority of stock. As you knew, I was about to go long on KEA when it dropped hard this week. It showed the type of pattern during the drop that I want to see in the whole market before I will say we have hit a longer term bottom with huge volume and a straight down drop. However, I think we could perform a short term rally again to form another bear rising wedge that will drop once it hits the downward sloping trend line connecting the July and August highs which triggered this last fall after failing to penetrate 2 days in a row. I think the upper limit of the wedge will be the old support line for the last wedge currently around 497 but rising each day.
