>> Look at the deteriorating percent of NYSE stocks above their 200-day average. This is no broad bull market<<
Are you saying this is like back in July 98 when only a handful of blue chip techs breaking out to new high while the rest of the market was going down? I attribute this condition to the combination of the growing internet business and the economic problems in other parts of the world like Asia, Russia, and Brazil. If your business is all about the internet, you are growing like crazy. If not, you're pretty much dead or facing deflationary force everywhere.
Without the tremendous growth in the internet, I don't think MSFT, INTC, DELL, CSCO, SUNW, AMZN, YHOO could do well recently. This condition may continue for a long time till the non-internet economy coming back. In the meanwhile, I think the leading internet stocks will continue to outperform the rest of the market. They may correct some here but if you have to own stocks, what are the alternatives? The internet craze can't die this easily. We need a catalyst for it to die and I can't imagine what that might be. |
