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

To: StockOperator who wrote (2199)	12/17/1998 2:22:00 PM
From: John Pitera	Respond to of 99985

I follow your logic on yhoo and Aol, just look at Cmgi booming up over 20 at it high of just over 100 today. In fact they can rise more to fit a preferred Elliot Wave idealized "B" wave rally of the DOt.x doing a .618 retracement to 390. See this post Message 6875452 Just remember that the net stocks are as speculative as Gold was in 1980. Small cap stocks are more undervalued compared to the big caps than at any time since wwII. So I'm not surprised you see insider buying in some. HOWEVER: I think this market is an analogue of the 1968 to 1974 market in that their was a massive small cap frenzy in 1968 Just like ours in 1993-94. The in the early 70's you saw a 4 year run in the nifty 50's just like we have experienced since 1995. This will conclude over the next few years with a Bear market of the magnitude of 73-74...ie 50% and in the 73-73 market the small caps that had already been sold down to low levels were sold to even cheaper prices and lower valuation levels ie (price to sales, price to book, PE ratio's etc) as capital left the stockmarket. Read Donald Sew's analysis on how the internets and how they will top out and then the market as a whole will go down in sympathy. Message 6873207 Passing observations, John