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

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To: ajtj99 who wrote (41128)11/21/2002 9:08:35 PM
From: Jorj X Mckie  Read Replies (1) of 52237
 
Same way that I would explain the acceleration in the rate of change between the COMP and the SPX at the blowoff top phase of the bubble.
finance.yahoo.com

If I assume that the SPX is always around 50% of the COMP move, obviously I would have a tough time. But today it was closer to 40% and tomorrow....maybe 30%.

The answer is pretty simple though. Let's say that I am in a nice safe three letter stock that is in the SPX that has only gone up 10% instead of the 500% that INKT has gone up. I'm gonna be thinking...."sheeeeittt, gimme some of dat!", but since I don't have any free cash laying about because this bear market has been a bitch, after all, I sell my nice three letter stock that is in the SPX, causing it to go down, while repositioning that cash in more speculative trash on the naz, causing it to go up. et voila, disproportionate advances in the indices.

rotation rotation rotation

or course, I am probably wrong.
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