Forum Archive Index - July 2002

["winner69 ." <wwinner69@hotmail.com>]

See the NZSE40 has fallen below the down trend line (the one that begun way 
back in late 1997) which was broken early this year.

The NZSE40 only stayed above that trendline for a few months. Last weeks 
activity has seen it drift below that old trend line. I assume this is a bad 
sign. Maybe Phaedrus/Arco can confirm.

Suppose one could say that the activity earlier this year was a bit of 
'irrational exuberance' or,maybe, just giving the fingers to the rest of the 
world.

Sometimes overshooting (temporary) a long term downtrend has been described 
as traders folly. Was this the case, if you read Richard's piece about NZ 
Inc making a profit (!!!????!!!) the other day maybe our over excitment at 
seeing a market rise was a bit of traders folly.

Closer to the truth is the impact that the likes of AIR, CAH and BRY have 
had on the index. Every dog has its day.

Suppose we are back into the world of reality - a continuation of the long 
term erosion of capital for those followers of the NZSE40.






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