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Strategies & Market Trends : AL is Not a Human Being
QQQ 629.07+0.5%Oct 31 5:00 PM EST

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To: Steve Lee who started this subject12/17/2002 11:31:42 PM
From: Psycho-Social  Read Replies (1) of 793
 
Fully Committed:
Completed my reentry into the Market today. I'm now 80% in stock funds, 20% in a Junk Bond Fund. Rationale: Contrarian indicators show overbought condition has dissipated. The Fear Factor (3-5wk lead) has risen modestly as terrorism fears have waned a bit. Perhaps most importantly, the large institutional players are in a bind, with the Market down 3 yrs in a row. They're desperate to at least mitigate the damage. The best way to do that is to use their spare cash between now and year-end to push up the highest weighted i.e. highest priced stocks in the Dow. For most unsophisticated investors, the DJIA is the Market. The Nasdaq and the Small Caps are also susceptible to this kind of manipulation because the Nasdaq's fortunes are heavily influenced by a handful of Tech large caps, and the small caps can be pushed up handily with a modest expenditure of $ over a period of a couple of weeks.
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