In This Issue:
A Big Rebound May Be Close
Like Kids In A Candy Store
Super Stocking Stuffers
These Trends Are Your Friends
The Bottom Line This Week
Another
bear trap snapped shut last week when the 4.8% stock market gain from October 6
- 10 turned into a 5.4% loss for the Dow and an ugly 9.3% plunge for the
Nasdaq.
As
has been the usual pattern during this stock market plunge, the drop was larger
than the previous bounce. One of our group compared the market to a slot
machine that gives just enough money back to make people want to keep playing.
We
saw another inducement to play on Tuesday of this week when the market surged
nearly 890 points when it became known that the Fed would lower interest rates
again. When the official announcement came on Wednesday, stocks eased back 74
points. It was a textbook example of the old Wall Street rule to "buy on the rumor,
sell on the news."
...