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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (19020)	7/1/1999 10:55:00 AM
From: James F. Hopkins	Respond to of 99985

Berney; End of the quarter for mutual funds was yesterday, they often window dress their Navs with last minute buy orders to run up their major holdings. They anticipate cash inflows in a day or two from 401ks so they likely spent all the cash they had on hand. Jim

To: Berney who wrote (19020)	7/1/1999 12:22:00 PM
From: Ken98	Read Replies (1) \| Respond to of 99985

Berney, most of that volume was related to rebalancing of the Russell indexes. The stocks that were added/dropped were bought/sold "at the close" thus leading to incredible swings and volumes in the issues affected. This is also what is leading to the drop in the RUT today, not the deletion of the internet stocks. Very few internet stocks were dropped out and several were added. Look at these charts of several stocks that were added yesterday and you will see what I mean: quote.yahoo.com And a couple that were dropped: quote.yahoo.com It's kind of funny like Jim notes that they never drop the high fliers. And they are able to keep the internets in the index because they use a "tradeable base" theory to say that because the market cap of the float is small these companies are "small cap" even though the total market cap is several billion dollars. Not exactly what most people think of when you say "small cap stocks." Most people would not consider CMGI or MFNX to be small cap with market caps of 9+ and 5+ billion, respectively. Regards, Ken.