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

To: Tommaso who wrote (31814)	10/16/1998 5:33:00 PM
From: bearshark	Read Replies (2) \| Respond to of 94695

Tommaso: I think Fosback and Malkiel read Gould. Gould named it the "Three-Step-And-Stumble Rule." I believe Martin Zweig attributes his thoughts on this appropriately to Gould. Gould's use of the dividend yield was called the "Senti-Meter" and the "Senti-Graph." I used Gould's method's last year and calculated a fair value of the DJI based on his work at about 4500. A number of things Gould used could be traced back to Charles Dow. Elliot and others used Dow Theory as a basis for their theories. Eventually there will be a bear market. I plan to play that fully. However, someone is going to have to stop this raging buying. Although I cannot say what the future holds, I know we have had our three completed down legs in many market indices. These fit a completed bear market in those indices. If there is not a fourth step down in these indices as Gould warned about in his "Three Step Rule," we may have seen a healthy correction in the DJI, INX, and OEX . If we have completed bear markets in minor indices and corrections in the major indices, there would be a good bull run coming up. We may be in it now.