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Has anyone heard of the Dow Theory? The theory is when the Dow Industrial Average (DJIA) and the Dow Transport Average (DJTA) fall below their support level at the same time it signals a bear market. The same theory is applicable for their resistance level which would signal a bull market. This system has been wrong 5 times (from 1897 to 1990) out of 50 bull and bear signals (not a bad record). In June (1998) both indexes fell below their support level at the same time. If you were an institution or a hedge fund manager and you wanted to cash out, How would you do it? I know if I was in that position, I would take advantage of short squeezes and short term buying to push the stock higher. keep in mind, you own a lot of stock in that company and it will take some time to cash out completely. Another route to take is to play the 'Shell Game'. I would buy heavily into different sectors (Internet, Biotech,..etc.) to create a run in those sectors. It makes the whole market look appealing, adds more support to the stock your in, and generates good money in the feeding frenzy of that sector. It's time for the Divorce! Unlike October of 1987, this market has disinflationary pressure driving prices down. It's time to fall out of love with the stocks in your portfolio and review their fundamentals. What will happen to your stocks in a market downturn? Whether your stock are up or down - Get Out Now! It's better to take a loss in stocks that are down now than it is to take a real hit in a market downturn. There are plenty of momentum plays and short plays to recover your current losses. There are intermediate plays also that will do well in a bear market. It's time for all bears to come out of hibernation. We've been sleeping too long. We're emaciated. It's time to go hunting. We will look for easy game. We will prepare for the comming winter. It's time to add bulk. We will hunt selectively and follow the market flow. This is the Time. Let's unite! This thread is dedicated to sharing information on: * Intermediate Longs - That can hold up well in a bear market. * Intermediate Shorts - That are severely oversold and/or sickly. * Shorts - That make excellent Bear Attacks. (quick kills) * Momentums - That the big boys are offering. (quick kills) * Potential Armageddon plays ( Is there a future 'Black Monday') We fall out of love with stocks and back in love with cash! | ||||||||||||
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