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

To: HairBall who wrote (9765)	4/4/1999 2:35:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 99985

Hey, Great Thread! I hope no one minds me reposting my thoughts here from the PQT thread.<g> Just seems more relevant here. Market Direction? Lots of people including myself are rightly concerned about market breadth. To few small and medium caps have been participating in this Bull market. With a majority of the blue chips and internets extremely overbought it's hard to take comfort in our strong economy. The likelyhood of a breakout above DOW 10K on this breadth is hard to swallow in the very near term IMO. The most likely scenario I see is a rather strong correction....but when is the $64,000,000 question? There are very large amounts of cash sitting on the sidelines just waiting to see what's going to happen. So I guess it's going to take something to trigger a correction....but what? The Fed is not likely to kill this bull market anytime soon with a rate hike, so it will have to be some other catalyst. I seriously doubt the large caps can continue to move us higher all the way to June without a major correction. I'm sure we will see the markets swing widely to coming earnings announcements and expectations. Other worldly events will also cause uncertainty among investors in the coming months. The same thing happened last year around this time. So just be very selective in your stock picking. I'm looking for a blowoff before another summer rally. That's the problem with market timing nobody knows when or what will cause the markets to move.....but rest assured market volatility is here to stay. ...more Zen to Investing Like breathing, endurance depends on self-renewing movement. Nothing that is simply static will endure. The movement that duration depends on has a definite rhythm, like the movement of planets in their orbits. Internal laws that control your character will not force you into rigidity, but will allow you the flexibility to adjust to circumstances. There are times when it is correct to follow others and act according to tradition, and other times when a more outstanding, flexible or creative approach is correct appropriate. The environment is temporarily laden with many events, ideas and situations demanding your consideration. You may struggle in your attempt to solve problems. Don't be bothered by misunderstanding and lack of appreciation from others of your attempts to solve problems. Maintaining your composure will help you succeed. Don't use forceful methods. Be flexible and prepare for quick transitions. I hope reflection helps people become better investors. After all we're all just looking for security and happiness.... Jeff angelfire.com