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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Boca_PETE who wrote (7880)	8/18/1999 10:24:00 PM
From: Investor2	Respond to of 15132

Some thoughts on divergence: 1. Bob hasn't publicly stated how long the divergence can continue before it becomes a problem. 2. Before the current "divergence," in which the Dow is outperforming the S&P 500 and the NAZ, there was another divergence. Late last year and early this year the S&P and the NAZ were outperforming and the Dow was lagging. Actually, if you look at this chart, the divergence isn't too obvious. finance.yahoo.com^DJI&d=2ys 3. There is "divergence" between the Dow and the other indices only to the extent that the Dow neared it's highs and the other indices were slightly more than 5% below their highs. If the S&P 500 and the NAZ catch up to the Dow, and all move to new highs, the divergence will have vanished. If the Dow drops 5% and the S&P and NAZ stay flat, the divergence will have vanished. If the S&P and NAZ drop 45% and the Dow drops 50%, the divergence will have vanished. 4. Talk about divergences, check this out. finance.yahoo.com 5. One more view of divergences, or lack thereof: quicken.com Just random thoughts on divergence. Best wishes, I2