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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 683.38+0.1%Nov 12 4:00 PM EST

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To: James F. Hopkins who wrote (2813)12/25/1998 7:09:00 AM
From: HairBall  Read Replies (1) of 99985
 
Jim: Well, can't believe I am up this hour on Christmas Day, but the male cat is unhappy with the visitors. He can't retreat to his own room...someone he does not know is in there...<g> He has been whining at me most of the night!

Your analysis of the S&P Index is a conclusion I reached years ago. NASDQ and Dow Indices are much the same. I know the Dow Indices are share price weighted as compared to market cap weighted, but in the end the results are the same, the strong stocks impact the Indices more than the weak ones. And, if a stock gets too weak on the top tier Indices it gets dropped and a stronger stock is used to replace it. Indeed, this skews the Market toward the positive!

I guess there really is no way to have an S&P 500 that speaks the truth completely. The very nature of using the top 500 stocks will not permit it.

Now my female cat is eating the ribbons off the presents. She has already forced my wife and I to reduce the Christmas Tree...ornaments are the she cat's favorite food during the holiday season. I guess the wife and I feel honored we are allowed to serve our pets...<g>

The stock Market serves its secondary purpose to provided a method for capital acquisition for Companies and it also serves its primary purpose as well...wealth redistribution.

Trust you will have a great Christmas.

Regards,
LG

PS: It took me an hour to write this...those darn cats...<g>
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