Hi Tom; It looks like a sort of adjustment to me, Money came out
of the Magic Ten, and even the Nifty Fifty , and it's finding
it's way down stream a bit. What I call the third tier just below
the Nifty Fifty has moved up today. From time to time this has
to adjust some as the huge caps just get to huge if it don't.
You can see the OEX is down more than the SPX, and at times I
would say that was bad, ( if we were topping ), but right now
I see it as asset reallocation, and a broadening out from the
Top heavy effect the index funds create.
I would not want to be a small stock picker with this pumping going
on. I think after we get over this adjustment, we will have a
kind of flat period some what like we had last Nov. Dec., but then a strong rally this year before Xmas, to kill the tax write offs.
Taht last part is a quess, and based on we just had our OCT
sell off a little early this year.
Time to look back and find which funds did ok during that
flat period. We will likely make a stab at a new high, but fail,
then fall back to this level for more adjusting, then start
back up with a wild rally in Nov.
I don't rule out moving on down to the 8000 level if by
some chance 8400 don't hold, but that was a 10% hair cut ,
and will likely wind up having been the bottom.
Jim
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