Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Stephen who wrote (15087)	5/27/1999 1:04:00 PM
From: pater tenebrarum	Respond to of 99985

Stephen, i missed it as well...see John T.'s post to me for details. the fed is facing the same dilemma it faced in 1929. how to curb stock market speculation without triggering a crash? i do not think it is possible at all (as was the case in '29). as soon as they raise rates for the first time, there will be a massive rush to the exit; if they do nothing, speculation will get even worse, and ultimately lead to an even more painful adjustment. i have already remarked several times that the market's behaviour reminds me a lot of 1987. the recent sharp correction, with sharp counter-trend rallies thrown in, reinforces this even more. i think in fact that it would be reasonable at this time to be on crash alert. the market has now gone down sharply on what was essentially no news. i suspect that some extremely negative news item is lurking just around the corner...in the current environment that could easily lead to even heavier selling. still, i do expect some kind of a bounce before things get really serious(no guarantees on that view though). regards, hb