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

To: Johnny Canuck who wrote (19724)	2/6/1999 8:42:00 AM
From: j g cordes	Respond to of 70325

Inflation is not dead, if I may paraphrase Nietche, its alive and well in the stock market. Sort of a catchy way to put in perspective some of the gains our markets have experienced. Another way to look at it is that valuation is a relative number, in a global system of capital flows. Valuations have pushed up the bidding on stocks as a socio-economic asset class. Inflation fled commodities, its fled debt instruments and hard assets in favor of the enterprizes and machinery that create new products and services. This is a long wave of change with many explanations that make some sense of the matter, but the most compelling argument seems to be that technology works, it fulfills real needs at lower costs with better results and that's what history has opportuned the United States to excel at for this moment in time. Bear in mind that this paradigm of 'practical efficiency' ruling the economic world, is just one choice we have. Historically there've been religious, despotist, and hard asset collection models that have ruled. Remember in the novel Dune, he who controls the spice controls the universe. The same could be said of technology today. Technology is the drug of this asset bubble that's undermined the commodity based universe for a time. All of this is a partial note to your exclamatory comment "We have a heck of a run so far. I just got my January statement and considering I have only did one trade this month, the balance at the bottom of the statement really amazed me. I not sure your supposed to make that much money in a month without doing anything. I really think we need to rest for a while. Most if not all the good news is out. There is nothing till the next earnings period to push the market higher." Having gone to such an abstraction, I'd like to be able to say "sell" or "buy." While I agree that the upward slope needs a rest, I also think there's enough unclaimed exhuberence territory before this bull finishes snorting. <g> Jim