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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (298)	12/4/1998 8:35:00 AM
From: donald sew	Read Replies (1) \| Respond to of 99985

Enigma, Normally, there is not plateau since the movement upwards is parobolic. If it appears to be a plateau, it is probably not the peak yet and just a base from which it can go higher. If a plateau/base was to form, the next parobolic move up could be the peak. I wonder if one of the ways to identify the top of the internut craze is when the junk have lost their craze which is happening now, since many of them have already lost 50% of their value with parobolic moves to the downside. What I am saying is that once this craze is over, even the good ones will lose more than 50% of their value. Its like a fad losing its steam. They will still be around and making money but the craze that will keep them at such high valuations will lose alot of steam. Just from a logical standpoint a stock cannot indefinitely continue to rise in price without making money. At some time they have to show earnings. That could be years or very soon depending on the biz. Biotechs which take several years to mature fall into that category, but eventually they have to show something. I guess what I am saying is that there has to be a limit. Is the limit now - I dont know. I realise that the INTERNUTs have been around in terms of years - my premise is once the peak, as in price is set, then it will be within a year that they will lose more than 50% of their value, even the good ones. The really lousey ones will go out of business or lose 75% and more of their value and some will become penny stocks. Seeya