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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Judy who wrote (10536)6/23/1998 7:14:00 PM
From: LastShadow  Read Replies (2) of 120523
 
Russell X000

The additions and deletions are finalized on July 7, and the funds generally take about two weeks to adjust. There can be a feeding frenzy going on, with funds selling and buying, although most tend to place incremental buys for the smaller caps or set limits that the mm's find hard to refuse (due to the size). However, if you see large volume buys on the stocks moving into the index, I'd enter just on their coattails to ride the short bounces. Similarly for larger sells, although those usually precipitate their own selloffs with traders shorting on the first sign, so those are harder to play.

Don't worry if one of your stocks is one dumped, and don't get too excited if one yuou own is one added - about 2-4 weeks after all the buying and selling is done, they generally rise or fall back to the prices they were at before hand.

One other thought is that many of the mid and smaller cap stocks that are tanking are not recovering anywhere near a normal cycle. I would be real hesitant to jump on those unless you see some confirming price/volume action. The market is starting to respect some of the slower, but continual growth. Anyone with the extra time (since I am getting real short on sleep lately) might screen for fairly constant volume with month to month incremental price gains - by incremental I mean3% or so - 18% for the year doesn't sound like much perhaps, but when the and the Russian Ruble, and later the German Mark go under deeper scrutiny in the next few months, I think we are going to need some shelter...so we might as well start looking for the ones the big boys will be buying.

lastshadow
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