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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.

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To: Topannuity who wrote (1965)2/24/2001 2:40:04 PM
From: James F. Hopkins   of 2103
 
Hi Top; Well it's not all a P/E game , I tend to think
markets trade more on liquidity than earnings, and that
the way they do earnings is to try and make that
curve fit or justify the price.
I try to look outside the P/E thing for indicators.
However if we are to look at p/e it will be the
Largest Cap stocks that will influence the
index the most, and we still have some of
them trading with at high p/e.
-----------------------
We should get a bounce but if liquidity don't get
better fast & being we set a new low we could
wind up in a melt down after the bounce.

I'm not saying we will but the possibility is
real enough.
Markets tend to go to extremes
once they tip beyond reason, panic has to
have it's say ..at the top it's always shorts
who panic buy. or are squeezed, at the bottoms
it's the bulls who sell to cover margin calls.
Jim
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