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Technology Stocks : Jimbo's Playhouse/CPQ -- Ignore unavailable to you. Want to Upgrade?

To: Jimbo Cobb who wrote (4719)	10/18/1999 12:55:00 AM
From: Night Writer	Read Replies (1) \| Respond to of 12663

Jimbo, True, but if I remember correctly in 1929 the new telephone technology helped almost everybody get into the stock market. NW

To: Jimbo Cobb who wrote (4719)	10/18/1999 6:21:00 AM
From: Mao II	Read Replies (1) \| Respond to of 12663

Jimbo: I don't think the argument is volume equals mania. Rather it is almost the opposite. Certain issues in the NDX and OEX are pursued by institutional money managers without regard to underlying fundamentals. Hence the daily dollar volume of MSFT, CSCO, GE etc has become extreme, and valuations have been distorted. Most other issues have been in a steady decline this year. If indeed we are in a period where valuations are going to be brought into line with fundamentals (or even potential fundamentals) then the big market darlings are going to have to come down. Until this happens, the broader market will continue to decline, and no new money will come in to support it or reverse the trend because there is less and less available cash. (Hence the emphasis on DOLLAR volume.) That's the argument. M2