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Strategies & Market Trends : Tech Stock Options

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To: Dave Lyall who wrote (2006)5/28/1996 2:42:00 PM
From: Pascal A. Mons   of 58727
 
Dave, My view on Dow stocks is that they are played by big players, institutions and the likes. They are part as well of Index funds. Since they set the DJIA index they move with it. They are all heavy weight capitalization stocks. Overall the amplitude of the move is often less than on stocks outside indexes. The reason beeing that these index stocks often move ahead of the broader market on macro-economic predictions made by high ranking economists. That was the case for the last 9 months at least. 1st you had a big jump on the Dow while at the same time you had Tech corrections or NASDAQ lagging behind then after one or two months the Dow had stabilized and the Tech & NASDAQ took off till out of steam... and on to a second Dow ride... we are right now at 2nd or 3td wave... I believe that the huge number of players on these stocks tend to result in marginal daily moves.

This is why to me playing Indexes stocks or Dow is very different from ordinary stock trading where usually Sector or Stock informations move the price.
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