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Non-Tech : Anyone using Indigo Software

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To: Dr. Stoxx who wrote (29)3/2/1999 7:36:00 PM
From: Jim DiFalco  Read Replies (2) of 42
 
Thomas,

Each momentum model uses the index that relates the most to that stock. There are 21 in all. As an example Mindspring uses the Wilshire Small cap, whereas Lycos uses the Nasdaq as a trigger index.

The momentum models are like a hunting dog, searching all the time until they lock onto a trend, then they just ride it until a reversal signal occurs.

A large change in the direction of the market daily can cause a certain amount of whipsawing in the momentum models.

Jim
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