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Strategies & Market Trends : Tech Stock Options

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To: Compadre who wrote (57931)11/22/1998 8:25:00 AM
From: donald sew   of 58727
 
Jaime,

>>>>>> I believe that there was enough of a sector rotation to cause the new highs to remain under 100. <<<<<<<<

My broker felt the same way you did about sector rotation a few weeks ago, and during that period there were some small caps which were rebounding nicely, and he felt that it would expand into more of the smaller caps. Just this past week he changed his mind - yes some small caps did rebound nicely so there was some sector rotation, but he started noticing that it was only a few that rebounded again.

If you look at the RUT and some other small and mid cap indexes, they are still below their levels when the DOW was in this range(9100-9200) back in the spring. Even the NYSE is lagging.

What appears to be happening is some rotations but at the same time increasing divergence amongst some indexes compared to the DOW/SPX/NDX.

Seeya
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