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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (16479)	10/8/1998 2:21:00 PM
From: TWICK	Read Replies (1) \| Respond to of 120523

I was able to get out of YHOO at 107. Crap. Glad I bought a small position. Didn't want to hold on to a looser. Today's watch list is a sad thing to look at. I have no position today and I'm not sure if I'm going to play tomorrow. I don't have access to real-time tools this week, so I'm not able to scan for reversals. Jenna, what's your take on next week ? Any chance we may see a rally. I personally doubt we will thanks to panic selling and general fear of most investor's to get back in. I happened to find a great article in the Sept 11 issue of Businessweek. A key point that seem very fitting at this point: Economic truths that have been confirmed by recent developements: 1. Massive short-term borrowing in foreign currency is especially risky business. 2. At critical moments in the world economy, whether it's the old economy of the 1930s or the new economy of the 1990s, human emotions can overwhelm market fundamentals. Euphoria about the Asian economic model, about development in Russia, about the potential of Internet and information technologies, and about the end of the business cycle in a world of flexible production techniques led investors to discount risk and to price equity markets for perfection. Then, as they began to realize that their expectations were unrealistic, panic blurred their ability to perceive meaningful differences in the economic fundamentals of individual countries and companies. "Iraational exuberance" gave way to an irrational rush for the door, and confidence, which is essential to the smooth functioning of markets, was shattered. Which just goes to show that no matter how sophisticated the world's technologies become, they may never be able to control the recurrent bouts of euphoria and panic that are part of the human psyche and an essential ingredient of the business cycle. TWICK