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Grizzly's Growlings Current Report |
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Market Update Friday 04/14/2000 7:00 pm |
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WWW No, not World-Wide Wrestling, but WOW WHAT A WEEK!! The NASDAQ Composite CRASHED another 9.7% today, capping the week's total loss at a stunning 25%! Congratulations to the UltraShort OTC ProFund [USPIX] and its portfolio managers and investors. This "Great Bear Fund" soared nearly 21% on Friday, fulfilling its objective of being 200% negatively correlated to the NASDAQ. The fund is up an astonishing 73% this week! In Wednesday's Market Update, we asked: Is it Time for the Big One? Today's dramatic record-breaking action pretty much confirms it. And it ain't over yet, although a sharp but unconvincing counter-trend rally is likely to pop up next week. We commented on Wednesday:
We got a 355 point crash all right, but volume was average for the NASDAQ of late, a little under 2.5 billion shares. The capitulation and selling climax that is typically seen at major bottoms is still not evident. So what's ahead for Monday? Billions of dollars of margin calls will go out over the weekend. Undoubtedly, many investors will just sell their margined stocks, inducing potentially significant selling pressure Monday morning. Let's remember that 2000 is a presidential election year and undoubtedly, Al Gore will be calling Bill Clinton who will be calling former Treasury Secretary Robert Rubin who will be calling his friends on Wall Street. The last thing that Bill Clinton wants as his legacy is to have presided over potentially the worst stock market crash in U.S. history and done nothing. Who could fault them for trying to stop it? (Where was the mythical "Plunge Protection Team" on Friday?) An historic crash is the last thing Al Gore wants to see on George W. Bush's campaign ads heading into the November elections. We concluded Wednesday's report with:
Today's "action" suggests the markets may be approaching a short-term low soon, but it probably won't be THE bottom. A rally of a couple of weeks will take the markets into May, when THE crash may hit. People are finally worried. Jim Cramer of the street.com is "heartsick." "This is, by the way, a real crisis," he goes on to say. See http://www.thestreet.com/funds/smarter/920711.html Friday evening, CNBC Senior Market Cheerleader turned Funeral Director Maria Bartiromo essentially called Abby Joseph Cohen a "genius" for her call a few weeks ago to lower her equity allocation by 5%, to 65%! 65% long going into a crash is "genius!" What does she call those who were short!? US STOCKS REMAIN ON FULL CRASH ALERT! Stay tuned for the next historic week! |
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grizzly@bearmarketcentral.com
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