Lee, LG , Don and everyone ... I'm too busy with other stuff to read all the posts here, so apologies if this has already come up.
It appears to me that for the best part of 2 weeks, the tick has been very negative, and the adv/decline ratio supports this. Obviously many of the fundamentals don't seem to exist to maintain this index level ... however, it is my understanding that there are two contrarian forces at work at the moment to explain the divergence ... the negative tax loss selling ... and the positive end of year putting money to work by the fund managers. Given the earnings weakness with many of the bluechip companies (BofA, Mrk, P&G Union Carbide, Coke etc, etc,), is it not possible that the only place to put money is the blue chip tech names (the positive factor), whilst tax loss selling of the small & mid-caps that haven't performed so well continues.
If that is the case ... surely it might just continue ??.
I am 80%+ cash at the moment and see no hurry to rush into this market ... but the rising bluechip techies may just continue doing that imho.
Any comments ??
Apologies again if this issue has been raised, and thanks in advance for your input
Stephen |
