SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jon Matz who wrote (39638)4/21/1999 9:41:00 AM
From: James F. Hopkins  Read Replies (2) of 94695
 
That's part of what caused the head to fall off a cliff Monday,
Most of the TOP CAPs droped like a rock.
GE has 358B in market cap , then take UK at the bottom has 7B
50 to 1 difference in their cap ( and liquid ) Yet each one
moves the DOW index the same amount per $1 change in it's
price. All things equal say GE loses $5 , and UK gains $5
then the index don't move But the market cap just fell like
crazy and the Dow just lost a lot of it's liquidity.

Looking in side the TOP 10 hold 4 times the liquid,
the bottom 20 hold.
If I'm big money I can ease a lot of money off the table and
not drop the index by selling the Top 10 while supporting the
bottom 20. I can then pull out of the smaller ones and the
index adjusts to the liquid level real fast often going below
it.
What I see is a running liquid level as to where the index should
be ( it's a relative thing,) and I see the index adjusting
to that liquid level in a delayed fashion often dramatically to
spill past it , both on the up and down side.
Normal TA one would use on a stock can't be used on the Dow, as
the index is only a mirror of where the liquid level was.
The index trails the liquid level but goes on both sides because
of public reactions.
--------------------
There was some real fast damage done to the liquidity of the Dow when
I posted that the head just fell off a cliff post
I expect more down side.
Jim

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News