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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: PMG who wrote (31740)10/2/2000 4:19:02 PM
From: donald sew  Read Replies (2) of 42787
 
PMG,

>>>> VIX measures OEX volatility right? Perhaps it fails to describe NDX moves good enough. I can't explain the ignorance of DJIA, OEX (+0,4%) when Nasd breaks important support and so much money is just absorbed <<<<

What I have noticed often is that there is too much focus on what the NAZ does. As bad as the NAZ/NDX was the overall market was basicly flat to slightly down when one looks at the 3 major indices(DOW/SPX/NAZ) from an averaging perspective. Many of those who mainly focus on the hitechs would disagree with me, but I basicly evenly weight the DOW/SPX/NAZ.

What has helped the overall market move up so strongly last year and early this year may also be what could cause the market to go down hard. That is the issue of SECTOR ROTATION. SECTOR ROTATION appears to give a false sense of security. Just move the money from one area to the next and everything will be OK. Thats what happened last year and by the end of the year the market zoomed to NEW HIGHs. Now could the reverse also happen. Possibly.

So what you call ignorance of the DOW/OEX, I agree and explain it as an false sense of security from the SECTOR ROTATION mentality.
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