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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: thisMatter who wrote (19171)6/26/2006 12:27:58 PM
From: James F. Hopkins  Read Replies (2) of 19219
 
RE>It basically says that new ETFs may indicate a market high, << Very likely true just like in the past
when we got a flood of IPOs..
A lot of new stuff gets it's money from the selling
of other stuff, this shifting of money has an overhead
that often is more than the new money coming in can
offset.
----
All in all for the market to go up it takes a lot of
new money, in fact it takes new money for the market
to just hold it's own, as the net cost of money flow
runs about 8%to 10%.( comish and spreads and other fees)
The market is not a net balance of Buyers vs Sellers
there always has to be more buyers or it will go down.
Jim
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