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


To: Greg Jung who wrote (8956)3/24/1999 12:39:00 AM
From: Casaubon  Read Replies (1) | Respond to of 99985
 
yes, but is there historical precedent for such a scenario here? Or better yet, statistically significant evidence, as Don would say.



To: Greg Jung who wrote (8956)3/24/1999 12:55:00 AM
From: HairBall  Read Replies (1) | Respond to of 99985
 
Greg Jung: Without going into a lot of detail, because it is late and I am going to turn in...

As the big caps correct, those that shouldered the rise of the Indexes as of late, I expect the money that will come out of those big caps will go into previously out of favor big caps, medium and small cap stocks with more attractive valuations and new stories.

The rise in these stocks will offset some of the decline of the above mentioned big caps as they correct dampening the numeric fall of the Indexes.

As this capital rotation occurs it will bring some equilibrium back into the Market. This will set the stage for another rally, after the Indexes find their bottoms, which I suspect will be above the Oct 08 lows.

In addition, there may well be a bounce before the Market continues the correction.

Of course I could be completely wrong, so...

(All Disclaimers Apply)

Goodnight all...

BWDIK as always...
Regards,
LG