Price is right: After calling the recent market dip, BigTrends.com CEO Price Headley's rebound prediction appears on the money

FOR IMMEDIATE RELEASE:CONTACT:John BuzzardBigTrends.com (PRWEB) October 28, 2000 -7500(859) 269-7588john@BigTrends.comwww.bigtrends.comLexington, KY, October 25, 2000 -- Just as his recent bearish prediction in Barrons (9/11/00) of the current market correction was proven accurate, Price Headley, CEO of BigTrends.com, is urging smart investors to now look for bargains -- while they can. He sees the recent correction and uncertainty among investors as setting the stage for a dramatic market advance spurred by a historically unique set of factors. Headley points to recent rebounds from October lows as signs that the market has found a bottom.Investors who followed Headleys contrarian advice to shed certain tech stocks just as the Nasdaq was hitting recent highs have avoided staggering losses: on average, shares of his recommended pans" in Barrons -- Nasdaq 100 Trust (QQQ), Compaq Computer (CPQ), DoubleClick (DCLK), and Go2Net (GNET) are down more than 30 percent since early September.In September, Ariba, i2Technologies and DiGene were among the tech stocks we urged Barrons readers to buy in the midst of the upcoming correction, which is now upon us" Headley says. By the end of last week, they had shown some nice gains and should continue to do so in the intermediate term, moving up in tandem with the market." More broadly, Headleys analysis urges investors to use the recent panic selling to pick up quality stocks at bargain prices.Headley specifically cites the heavy equity option put trading over 10 recent trading sessions: The 10-day CBOE equity put/call ratio on Monday, October 9, registered a reading of 61.2 percent (61 puts traded for every 100 calls). His research finds only five prior examples of such pessimism going back to 1990. In each case, the CBOE 10-day average of the equity put/call ratios of over 60 percent occurred at or near major market bottoms, and they were followed by substantial moves higher over the coming months, as BigTrends.coms historical models indicate. In all cases over the
next 3, 6 and 12 months, the Nasdaq Composite moved significantly higher, and in 4 of 5 cases over the next month, the Nasdaq Composite rallied by 13 percent or more. Overall, the Nasdaq shot up an average of 36 percent in the three months following the put/call ratio peaks and more nearly 60 percent within one year.Headley believes that the consistency of these buy signals strongly suggests that Nasdaq should soon gain in similar fashion. Using the average historical gains for the same time intervals, he calculates a three-month target for the Nasdaq of 4568 and a one-year target of 5300.While BigTrends.coms technical indicators point to strong gains in the intermediate term, Headley is quick to caution that a rally on the order of last falls Nasdaq runup is unlikely. We may see continued volatility in the broader markets, even as we begin to see a modest to strong rally evolve over time. Theres still much opportunity to be wrung out of this bull market, but the uncertainty among investors means that
timing is more important than ever."For additional information, interviews or samples of products, contact:John BuzzardBigTrends.com(606) 269-7500john@BigTrends.comwww.BigTrends.comBigTrends.com offers advisory services and publications that provide individual and institutional investors with timely tools for successful trading in any market condition. BigTrends.com simplifies the process of stock, option and mutual fund investing by offering real-time guidance in creating focused portfolios designed to capitalize on major market moves.###