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Strategies & Market Trends : P&S and STO Death Blow's

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To: ajtj99 who wrote (17684)11/29/2002 8:15:32 PM
From: Jorj X Mckie  Read Replies (2) of 30712
 
I thought I already addressed that once. I reconcile that by assuming that the rally in the safe stocks is almost over.

Dow likes to do about 25%
stockcharts.com[w,a]daclynay[d19991101,20021129][pf][J8544526,Y]&pref=G

SPX likes to do about 24%
stockcharts.com[w,a]daclynay[d19991101,20021129][pf][J8544535,Y]&pref=G

If money starts rotating out of safes stocks and into speculative tech stocks, you can have the Dow and SPX inching up while the naz goes up another 110 points. It's not like we haven't seen this happen before. If you look at the Dow in April 1999 compared to April 2000 there is only a 7% gain. In the same time period, the Naz went up nearly 100%.

I'll look at more recent bear market comparisons, but I don't think we can discount the sector rotation thing to hammer these things out.
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