John,
>>>> However, the DOT could already be a dinosaur. A year ago there were only a handful of inets to choose from and the mo-mo boys played em big time. Now, after they've split a few times they don't move like they used to. The momentum crowd has moved on...to RBAK, ARBA, JNPR, CMTN, PHCM, GOTO, BRCD, STMP, KOOP, CYBS, etc. <<<<
You have a valid point and going back several months ago we had similar discussions of such. From a stock pickers point of view, yes
there are still internet stocks which are still moving. By the way
if you include BRCD in that list, then the highest flyer of all the internets is ANCR which could have been bought easily at 1.00 by anyone last year and got as high as 38 recently.
However there is an importantance for specificly the DOT.X, since some believe that once the former leaders lose their momentum, such is
a leading indicator that the whole market will lose its momentum. How far ahead of a leading indicator is the DOT.X, who knows. The verdict is still out if such is true.
Now why do some use the DOT.X specificly as a leading indicator, and I think the best support of that is the market cap. When the DOT was at it highs, the total market cap of the DOT.X then was near 500 billion, which was about the same as the 15 smallest DOW components combined which included AA,ALD,CAT,IP,UK,DIS,EK,GT,JPM,MCD,S,UTX,CHV,etc. At
that time, the DOT.X was one of the largest sector indices and probably still is.
I had also given the analogy of IOM in relation to SOX.X/DDX.X indices where subsectors will still sprout with strong momentum.
seeya
Seeya |
