Market Watch: A sampling of advisory opinion

August 1990
Edited by Kathryn M. Welling


July 23, 1990

The potential for a serious correction within the context of a "bull" market is at hand. Since 1984, all moves on the downside have been sharp, quick and, in particular, buying opportunities. A correction would last months rather than weeks or days, and only when most market participants believe that a long-term "bear" market is in progress, should traders consider long positions for more than a quick trade.

July 30, 1990

The majority of stocks look lower, including some quality stocks that previously had led the market up. Although I do not expect a "cascade" or "crash" except for periodic futures related "black holes," the overall market should trend lower, following the pattern of a typical bull market correction.

August 27, 1990

The market produced an impressive technical bottom at Dow 2500, thereby keeping the primary bull market in tact. Although, in time, another test is possible, I would expect broad-based gains in stocks in the next few weeks, especially if it becomes clear that geopolitical events have worked to our advantage.

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