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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (1782)	10/24/1998 4:49:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 81101

Searle: Have you noticed that the small caps have outperformed in the recent rally? This is the new trend. Small caps and economically sensitive issues will lead for some time to come. BTW, I now feel the market has bottomed, but expect wide swings over the next few months. Looks like we are getting ready to correct significantly. The market is heavily overbought short-term. The VIX -- which measures invester fear -- actually fell a bit to about 30 on Friday despite the Dow's 80 point drop. The VIX probably will have to get up to the 40 area again before another sustained rally can begin. But I doubt if the Dow will go much below 8000 in this correction and the small caps should hold up even better. Time to buy economically sensitive issues on the dips. And gold stocks as well because declining short term rates will at some point blow the yellow over $300 on a sustained basis. But I have given up trying to predict exactly when this will occur.