Mao II: What do you make of the cross the board rise in basic materials and energy? It'snot just oil, you know.
In a post several weeks ago, I pointed out that I expected funds to begin to rotate out of the large cap issues, hi-tech and “internuts” that have shouldered the dramatic rise of the NDX/COMPX, DJI/NYA, DOT and a few other Indices off the Oct 98 low.
I expected funds to rotate out of the previously in favor large caps, hi-tech and “internuts”, into previously out of favor large caps, some medium and small caps, commodity/energy based issues and vehicles of safety such as T-Bonds.
I expected that some of the high flying Indices would show the fund withdrawal initially. (IE: NDX/COMPX/DOT) However, in the Dow 30 funds are rotating into some of the components that had been less in favor. This has boosted the Dow 30 even though I believe funds have begun to rotate out of the previously more in favor issues.
If this continues, as I suspect it will, eventually the TRAN will note the rise of the XOI. The rotational buoying effect on the Dow 30 will be over come by rotation out of the previous high flyers of that Indice and a continued rotation to safer ground could take its toll.
Was the overall Market top (at least medium-term) staggered in last week as I have suspected since last January or am I early or wrong?
As we often say on this thread which is oh so appropriate...time will tell...<g>
Regards,
LG
Disclaimer: My posts are my opinions only and I reserve the right to be wrong on occasion. Do not base any investment decision solely on anyone's views or analysis. Do your own research and take responsibility for your own investment decisions. |
