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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (18741)	12/8/1998 6:19:00 PM
From: space cadet	Read Replies (2) \| Respond to of 69233

Hi Clint, Since the tech's have marched straight upward for 2 months now without even a brief pause (have we had even two consecutive down days on the Nasdaq in that period?) I'm a little puzzled at what lies ahead. Normally the big boys and mm's like to drop the market a little before earnings, while the warnings are about, in order to provide some nice headroom for the coming earnings rally. But with the techs trading at valuation ratios that have never been seen before by mere mortals what is going to happen here? Unless there is a brief correction in the next month it will be very hard to understand how a rally can take place, yet it is scheduled to take place anyway. Is this how bubbles form? Is this what happened in the late 80's in Japan? It looks like 2 peg is now the "norm" for the dell's msft's csco's lu's and emc's of the world. Apparently people crave earnings reliability and will pay almost any price for it. So how do you see earnings warnings weeks now, and the earnings rally later playing out? I'll predict that unless Greenspan lowers rates again (which most people doubt) that we back and fill for the next month, and then have a mild earnings rally- nothing like the wild fall rally. But given that so much money is about to deluge the market in the next few weeks, I worry that we could go still much higher. In any case, I expect the internuts to explode again sometime soon.