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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (19894)	3/13/1999 12:20:00 PM
From: dennis michael patterson	Respond to of 42787

Here is what the Princeton People said late last year: Sat, 14 Nov 1998 00:33:16 -0500 The stock market rallied Friday, closing the week on a strong note. It could easily go a bit higher into early next week, but we continue to emphasize caution on the longside. The risk of a huge downside move is still there. If the S&P DEC contract penetrates 1150 intra-day, you may see a move to 1177.80, but it is definitely not worth the risk in buying this market. Also, it is worth noting that next week is indicated for a Panic Cycle in the S&P Futures. A Panic Cycle normally coincides with a wide-ranging trading pattern. We may experience wild swings in both directions. If the market moves higher on Monday & Tuesday, it could easily end the week lower on Friday. Shorting the market is also quite risky until you see firm evidence of weakness in the market. We were as surprised as anyone to see the S&P December contract close above 1129.40 on November 6th. BUT this does not make this a sustainable rally. In his Annual Seminar our chairman, Martin Armstrong, noted that "the market wants to go as far as it can go in one direction until your head spins, then turn around and go as far as it can go in the other direction until your nose bleeds." We will all have to learn now to live with higher volatility in the stock market. Our computer models are showing increasing volatility over the next 4 years. Picking the exact high of the reaction rally will be difficult, but we continue to believe that it is not a sustainable rally. The next leg down in stocks will be a wake-up call for the "Buy & Hold" crowd.