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

To: Fun-da-Mental#1 who wrote (21901)	8/3/1999 6:58:00 PM
From: James F. Hopkins	Respond to of 99985

Yes if the market does an 87 type crash then I would expect AOL would also dive but be one of the ones to come back first at least up to resistance; after that rotation may happenm from the former hot stocks into a new group which will gradually produce new leaders. --------- The idea is the hottest trading stocks before the FALL , are the ones who recover first from a market wash out. These are almost always big name stocks, most but not all have the largest market cap. HOWEVER these stocks were also GOING UP prior to the washout and I'm not sure if AOL fits that, so for safety's sake I would say the Hottest trading stocks that were on the rise before the wash out. Yet I would be tempted to try Both AOL and Yhoo if a market wash out came. Fact is I broke my rule today about staying with the indexes an not picking stocks, but volume on AOL was so high as she came off $86 I bought her , I hardly ever buy an internut out right, <G> I didn't hold her long but she was over half of what I traded today. ---------- After the OCT sell off in 97 I tracked stocks by market cap size, and then after the bounce the market stayed like almost flat until well into Jan of 98 , but those Biggest caps as a grope were up 10%, the only others to make gains during that time were the very small micro caps which were not even in an index. The other exception was the very active stocks before the wash out, it took me a while to catch onto that. After that I took some old value line charts and checked 87, and found the same thing. Jim