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To: John Pitera who wrote (42164)5/21/1999 2:09:00 PM
From: NickSE  Respond to of 86076
 
Interesting...

I don't know why I always do this, but I always look for previous examples to key off of, and then try to fit the current condition exactly to the prior example. Of course, it frustrates me that they never are exactly the same, but sometimes it does help to give hints of what to expect in the current problem-solving experience. So, since we are comparing this period with the 13 trading days after the May 13, 1998 peak here we go again. We see that last year there were seven trading days after that high before the market had a significantly weak day. If this period did copy last year's example, it would mean that the first day of significant weakness would be next Tuesday. And even that day of weakness did not completely burst the rampaging bullish sentiment of the time, as the market did not experience another significant weak day for another week.

Oh well, we'll see. So far the top day this year was exactly on the same day as last year. And on the following days, every day has been in the same direction of being either up or down as the subsequent days of last year with one big difference. The Value-Line Arithmetic average is following the pattern that the Dow did last year, while the Dow is weaker than it was last year. That could very well mean that even if we see weakness in the days ahead, the Value-Line index (a proxy for the broad market) could rebound to new highs in July after these next few weeks of pause, much like the Dow did last year before the serious August decline.


wheatfirst.com;



To: John Pitera who wrote (42164)5/21/1999 2:24:00 PM
From: wlheatmoon  Respond to of 86076
 
thanks for the thoughts.

check out this comparison...i don't understand how CUBE could be compared to BRCM with BRCM's hand in set top tv chips....what am i missing?

"Despite a low price-to-earnings multiple of 19
compared to the broader market, C-Cube is still not
given the respect it deserves. Rivals such as
Broadcom Corp. (nasdaq: BRCM) trade at 92 times
2000 earnings. Add its booming sales of DVD
players to the list and the stock begins to look
cheap. And that is precisely why the company
begins to look like a perfect acquisition target."

A snippet form TODAY's forbes article

forbes.com