Rocketman, I think your comment:
So the Dow corrected, big deal. Hell, holders of Dow stocks ought to be thankful to have only corrected.
is being a bit dismissive, although certainly the emotion you express is one I hear from individuals and the media all the time. But, I agree, ignore the DOW, I say, except for its emotional value (which may be diminishing daily). Whatever.
But, lest you think I'm really agreeing with you, I ask you to consider not the DOW but the *entire* NYSE. All indications are that it is not only correcting but headed into bear market land. Hard to ignore.
And it broke its uptrend line from Oct 98, after having clearly set a top some time ago.
Now 30 stocks is one thing; thousands is quite another.
This divergence is much more meaningful and most likely will not go on much longer without something breaking. Either the underloved are going to rally very strongly (not just short term relief rallies) or it is more and more likely that the sickness will spread.
Eventually the divergence will get so great that even the professionals exploiting tech will have a fearful reaction (some probably already are). When the big money starts moving out, things will snowball.
It will be interesting to see if the latest runs in Canada, England and Japan all stall out too... and there are signs.
Have a jolly weekend!
Michael |
