Stock Attack -- A Complete Analysis Message Board

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

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To: Jack T. Pearson who wrote (34383)	10/31/2000 7:12:12 AM
From: donald sew	Read Replies (1) of 42787

Jack, >>>> I think I understand why people are pulling out of the NASDAQ--momentum is going the wrong direction for overvalued tech stocks. But I don't see what good news is making DOW stocks suddenly so extremely attractive. High growth in revenue and profits? Lower inflation? <<<< I just consider it EXTREME SECTOR ROTATION again. Going back to MAR-APRIL of 1999, we saw the surge in the "OLD ECONOMY STOCKs", at the expense of the NAZ. In MAR-APRIL of 1999, the DOW ran from 9200 to 11,000 in about 4-5 weeks, while the NDX was relatively flat gaining about 150-200 points in the same time frame. Once the rally in the DOW is over, I suspect that money will just move from the DOW back to the NAZ, reversing the SECTOR ROTATION as we saw last year. Will the NAZ move as strong as the DOW once/if the SECTOR ROTATION reverses in favor of the NAZ - I dont know, but should still produce a significant rally. My position towards EXTREME SECTOR ROTATION is that it is an ANOMOLY which will eventually get corrected, as we saw this year so far - strong correction after the sector rotation of last year into the spring of this year.

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