TIME TO HUDDLE UP THE GENERALS: A CLOSER LOOK AT THE "BIG 30 LARGE CAPS":
I backtest to maintain sense of market direction and flow. This from MITA 465:
"To put it more bluntly, when the bull troops (the broad market)don't want to fight the battle for Nirvana heaven anymore, the generals are the last to fight (INTC, MSFT, IBM). And when the generals can't bullshit the troops to keep on fighting for the mother bull, its high time before the generals fall in line to take the fall. The troops now total about 50,000 net new declines over advances since last APRIL of 98'. The worst (longest) breadth negative non-confirmation as measured by the NYSE A/D Index was a 16 month lead time before the market collapsed - that period was in 1972-1973 before the commencement of the 45% Bear Market Decline. We are now approaching month 16 to match that feat."
Now to the BIG 30: These are the top 30 largest companies by market cap in order:
MSFT, GE, INTC, IBM, CSCO, LU, WMT, XON, BPA, T, MRK, C, WCOM, KO, AIG, BMY, PFE, JNJ, TOYOY, RD, VOD, DT, BAC, BTY, PG, SBC, AOL, HWP, DELL, NOK.
Only a handful of stocks are up: WMT (good earnings report), the oils XON, BPA, and PG (soap stocks do well in bear market pockets), and KO.
Do the generals have what it takes to mount a "tet offensive"? Or should they retreat so we can pick em up at still lower prices?
Best, J.T.
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