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Mix-Ansicht- Don't Worry About This Stock Market Getting Away From You! - Cosa, 27.06.2002, 10:22
Don't Worry About This Stock Market Getting Away From You!
Hi!
Der tägliche Kommentar (26.6.2002) von comstock.com - sind immer wieder interessant zu lesen
<fonmt size="4">Don't Worry About This Stock Market Getting Away From You!</font>
There is Limited Upside
For most of the day the major indices were weighed down by the revelation that Worldcom engaged in fraudulent accounting over the past five quarters. On top of the Enron debacle, that was the last thing investors needed to hear, and the market sold off sharply at the beginning and again after the Fed?s announcement of an unchanged Fed Funds rate at 1.75% and maintained a balanced risk assessment. The Fed also expects the rate of increase in final demand to pick up over the coming quarters, but cautioned that the rate of strengthening remains uncertain. Shortly after the announcement, the Dow hit new lows for the day, but the Nasdaq and S&P 500 didn?t fare as badly causing a broad based wave of buying interest that spanned the last hour and a half of today?s session. This may have been a short covering rally or a rally that was what we have described as a normal?unbelievable? rally in a bear market. To most observers it would seem to be a positive technical development for the equities market, but to us it just postpones the inevitable capitulation we referred to on 6/22/02 in the daily comment.
We received many emails after the 6/22/02 daily comment which was entitled?Adios Concern Stage & Usher in the Fear and Capitulation Stage? of the bear market. Many of them were concerned that the capitulation stage would come quickly and leave them holding too much cash while the stock market started a major bull market. We would just like to make it clear that the Capitulation Stage we are talking about will not be a one day or even one week phenomenon, but instead will be a process that will probably take weeks or even months in order to make a final stock market bottom. This process will also have to take the major indices down to much lower levels than exist presently. Please don?t worry about being left behind in a major bull market that might take place from anywhere near the present levels. Before this stock market bottom is reached there will be major liquidation by the public, driving the major averages to the normal valuations, or lower, as described in Limbo, Limbo on the right hand side of our home page. This stock market bottom should also be accompanied by most sentiment indicators achieving levels more associated with stock market bottoms, not stock market tops as they are now. We also expect liquidation by foreign holders of US stocks before a major bottom is reached.
Quelle mit dem Archiv
Gruss
Cosa
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