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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.92+0.1%Nov 7 4:00 PM EST

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To: Rarebird who wrote (40776)2/19/2000 5:45:00 PM
From: Jags  Read Replies (2) of 99985
 
>>Is the reason why the Nasdaq has held up better than the Dow and
>>S&P merely on account of speculation or is there something more
>>fundamental going on here?

This very question has crossed my mind. Given the future possibilities
in the tech sector, it looks like fundamental strength. But then there
are sooooo many newbies in the market, caught up in finding that next
5x or 10x stock, that they do not care about *anything* else. And then
there is the ever increasing retail volume on nasdaq and the recent
increases in the margin loans. Then again, valuations are just as
speculative as the future possibilities are in the tech sector. If the
picture gets less rosy, valuations will readjust. Instead if the
picture gets more rosy, valuations will continue to get more out of
line.

Jags
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