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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (12031)12/21/1997 2:25:00 PM
From: kas1  Read Replies (1) of 94695
 
>it seems rare to have them moving in opposite directions

yes, that's a valid empirical observation. i guess i was making more of an fa argument than a ta argument (oh no, on this thread?).
let me give you a hypothetical fa scenario. the diseconomies of scale and the law of diminishing returns put a big damper on growth of the dow companies. maybe 0 growth if not negative. at least for a couple of years. djia gets sliced to 5000 maybe. meanwhile, aol is making new highs, so are msft and psft and dell. do you call this a down market, or just a changing of the guard? do not become so engrossed watching price movements that you are not open to a realignment of the big picture.

of course, this is all moot, since you use the vgy instead of the djia anyway. :-)
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