HI Monty; Long time no hear from you, thanks for the update.
The run up has been narrow, and mostly in the Nifty Fifty,
and the magic 5 of the Nasdaq 100..
In a way that the broad percentages have not improved all that much
doesn't surprise me, but thanks for the conformation.
This move into the really liquid big cap stocks could be not such
a bad sign. Narrow as it is it's still in liquid stocks, so that
has shown some caution on the part of the big buyers.
I'm not sure how it will play out, normally at the end of a surge
the smaller caps take off, and their rate of gain exceeds the
gain of the big caps , they have yet to do that on this last run.
Will the big caps start down before the small caps make their
run, if so maybe it won't be much of a down turn.
The face of this market could be making a change too , more people
going into index funds all the time, and more of them coming on
line. They have to play the big caps more in order to stay in
step, as the bigger the cap the more it's weight effects the index,
it's almost like a self perpetuation system that forces the big
caps to get even bigger in an up market and the bigger they get
the more the index fund has to buy them.
Where this will wind up is to bazaar to think about.
Jim
Jim
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