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

To: Kip518 who wrote (33077)	11/5/1998 8:36:00 AM
From: Terry Whitman	Respond to of 94695

I especially liked the first paragraph: <<Stocks bottomed on October 8th aided by a surprise quarter point interest rate cut by the Federal Reserve on October 15th. In October the DOW recorded its largest monthly advance since January 1987, rising 9.6%. Most investors believe that we have begun a “new bull market”. This proclamation is very suspect because the price-to-earnings ratios seen at the market's recent intra day low price of 923 produced a P/E of 23.7 for the S&P 500. Although, this ratio is well below the P/E of 30 recorded at the July all-time highs (reached at a 1187 price), it remains above the 23.2 P/E seen at the market's August 1987 high. If the correction is over, then, it bottomed at higher valuations seen prior to the greatest crash in history. >> On the contrary though, it's hard to be bearish now with the improvement in A/D and New highs/New lows. My micro-cap dogs are even joining the party. Hedged my shorts last week - so I'm basically cash now. Afraid to invest in the mania - afraid to short it with AG sitting at the rate reduction button. He's already burned me once. It looks like this bubble is going to expand even further... Regards, TW