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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 694.04+0.7%Jan 9 4:00 PM EST

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To: Square_Dealings who wrote (65873)1/4/2001 7:33:04 PM
From: John  Read Replies (1) of 99985
 
If the rate cut is so good for the market then why is it necessary to continue to selectively kill sectors?

Because the market ceased being an investors market about 3 years ago. It is now a daytraders market with different rules and quirks. The market seems highly unstable to me as a result of this. One needs to look no further than the NASDAQ's high volatility, and the increasing volatility of various sectors as you are describing, for confirmation of this instability. The struggle between the old school investors and the relatively new, online daytraders appears to be a mighty one. The race to get in and out of stocks is accelerating as you have indirectly pointed out. Where will this end? Will it take a 1929 style blow to force valuations to be accurately assigned again?

John
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