Grizzly's Growlings Current Report

Market Update
Monday 04/24/2000 7:00 A.M.

Loooook Ouuuuttttt Belllllooooowwwww!

As we anticipated, the markets rebounded last week in a thin but solid counter-trend rally. The NASDAQ Composite gained 322 points and the Dow Jones Industrial Average surged 538 points.

In our opinion, last week was a classic bear market rally, one in which investors and pundits alike are thoroughly convinced that the bull market is back to stay. They've "bought the dip" and presume that the buying pressure they've exerted in the process will reign supreme as the market pushes to new highs. We beg to differ.

So what's ahead for this week? Our view is that the counter-trend rally is over NOW, and the stage is perfectly set for the market to accelerate back to the downside. If so, we'll see several more mini-crashes similar to that frightful Friday the 14th.

Monday could be very ugly indeed. As this report goes to press early Monday morning, the S&P 500 and NASDAQ 100 futures are down solidly, -15 and -110 points, respectively. -110 for the NASDAQ 100 is "lock limit down." We'll have to wait for the opening of trading to see how much downside pressure there really is. Microsoft is down nearly 10 points to 70 in pre-market trading. 

US STOCKS REMAIN ON FULL CRASH ALERT!

We commented last Friday:

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. ... An historic crash is the last thing Al Gore wants to see on George W. Bush's campaign ads heading into the November elections.

Well, maybe that stunning front-page photo of the SWAT team commando brandishing an automatic weapon in the face of little Elian Gonzalez hiding in the closet may come to haunt Clinton-Gore even more than a catastrophic market crash.

For all you conspiracy buffs out there, how about this one: "The Taking of Elian Gonzalez." as FoxNews penned it, was carried out by the Clinton Administration as a means to distract Main Street from Wall Street and take the stock market out of the headlines and editorial pages. Such a strategy by Clinton-Gore would be one helluva gamble, but if things pan out as we suspect, we're in for one helluva market crash. 

A note on our publication schedule: Our next monthly "Monday Morning Market Musings" is due next Monday, May 1st. We will publish daily updates between now and then if dictated by any extreme market action, to the upside or downside. But remember, in bull markets, virtually all major surprises are to the upside. In bear markets the reverse is true. Stay tuned for another historic week!

"[They call it] a correction ... so that you'll stay in the stock market a month longer."
Syndicated Columnist Tony Kornheiser
  

grizzly@bearmarketcentral.com
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