stock reserves

Paul Henry Rosenberg rad at gte.net
Fri Mar 12 09:45:34 PST 1999


Doug Henwood wrote:


> Steve Perry wrote:
>
> >Could you explain what you mean by "market top"? Thanks.
>
> The high point of a bull market, just before things fall apart. They can
> take a long time to build, though usually not 14 years. The ideal type
> would be: market makes a high, falls back, recovers (with fewer stocks
> participating in the recovery, though there can be intense speculation
> focused on a few issues), falls back again, recovers again (with even fewer
> stocks participating), etc. Professors of finance laugh at these
> descriptions, arguing that markets don't follow such predictable patterns,
> but they're widely accepted in the markets.

This should be fairly straight-forward to quantify. The number of stocks moving up vs. down, the number of stocks moving up more than the market average. The average size of stocks in both those categories, that kind of thing.

So, have the professors done this and found nothing significant?

Or is it beneath their dignity?

How about market analysts? Have they done this? It would seem to be very much their bread-and-butter kind of thing.

-- Paul Rosenberg Reason and Democracy rad at gte.net

"Let's put the information BACK into the information age!"



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