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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 685.66

+0.2%

Dec 5 4:00 PM EST

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To: jmootx who wrote (71384)	3/6/2001 2:33:53 PM
From: Doug	Read Replies (1) of 99985

Jmootx: It seems that the sentiment in the TECH's is very different than in other sectors that have been thru a downturn. Energy is still the largest Global Investment. Despite that in 98, as energy prices dropped, the Market dropped the P/Es to 6 for some drillers. Similarly when the pharmas were hit , they dropped the valuations to 20. Drops in P/E's in Sectors have been near linear with a few minor bounces. Every one knows that the TECHs are in a downturn which is likely to extend to Oct.. Yet we see a pattern of 3-5% rallies even on downgrades. This pattern of increasing valuations for the TECHs may as Cramer said be driven by Hedge Funds and day traders. I have not seen an equivalent in any other sector. Do you have any historical reasons for this.? .....Thx.

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