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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (35247)2/20/1998 8:36:00 AM
From: marc chatman  Read Replies (1) of 58727
 
Donald, I don't know whether you consider money flowing into and out of the market, but (according to CNBC) AMG Data is reporting a net outflow of $.5 billion the past week - the first outflow in 7 weeks.

Of course, this may be an aberration, and I don't think it tells us much about levels of cash on which fund managers are still sitting. But since this is largely a liquidity driven rally, it may be worth considering.

Probably I'm repeating what everyone else already knows, but the reason the same stocks and the same indexes continue to outperform in this rally is that money comes into the same funds, and those funds continue to buy their favorite handful of stocks (especially on any dips). When we get to periods where the money dries up, the indexes which have shown the most strength may not look so attractive.

I think there is more juice in this rally, and I am more inclined to stay long.

Thanks for the index updates.
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