OK, I was gone practically all day and what happened? Who's fault is it? Yours Gary? JXM?
No really, brief me on what the news was the highlights the not so highlights.
I know LU pooped a big crayon, anything else going on?
So far the indicators aren't doing much which is really weird to those that haven't been around PnF. The buy and sell signals were even today. So, the indicators probably didn't budge.
Here is a little something from DWA.
FOOD FOR THOUGHT
It continues to be a wild ride for the market at the beginning of the
year. The financial news media is having a field day talking about
the "market." You know, the "market" of the NDX, SPX and DJIA.
The problem is that is really not the true market. It is important to
remember that these indices represent only a handful of stocks. They
are not representative of a broad, cross section of stocks. If the
prominent indices were representative of the average stock then they
would not have been posting gains for 1999 when 66% of the stocks
on the NYSE were down for the year. Here are some statistics you
might not have realized but are important to keep in mind when you,
and more importantly your clients, hear their favorite financial
newscaster talk about how the "market" was up or down.
The top ten stocks in the Nasdaq Non-Financial Index (NDX)
account for 46% of the movement in that index. Those ten stocks
are: MSFT, QCOM, CSCO, INTC, ORCL, WCOM, YHOO,
SUNW, DELL, JDSU.
The top ten names in the S&P 500 control 28% of the movement
in the SPX and the top twenty names control 40% of the
movement. The stocks are (in order of most influence to least):
MSFT, GE, CSCO, WMT, INTC, XOM, LU, IBM, C, AOL, T,
MRK, SBC, AIG, WCOM, ORCL, HD, KO, PG and RD.
The ten highest priced stocks in the Dow Jones are AXP, GE,
IBM, JPM, MSFT, HWP, PG, MMM, JNJ, and AA. Those ten
stocks account for 50% of the movement in the DJIA.
Considering the overlap, when the financial media quotes the
"market" as being up or down they are really reporting on the action
of 31 stocks! There's a whole lot of interesting things happening in
the true market like cyclicals, biotechs, financials getting oversold,
etc.
|
