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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (72645)	11/21/1999 10:21:00 PM
From: stan s.	Read Replies (1) \| Respond to of 120523

Stealth bear market. Thanks for posting that Kendall. Oddly enough I was looking at the advance decline line for the NYSE and the Nasdaq this morning. He's right as far as he takes it, the NYSE advance decline line was on an upward tear from late '94 to April of '98...steep decline ever since with a few slight tries at recovery. Hope he doesn't look as the Nasdaq. Been heading south since early '94 with steep acceleration downward starting in October of '97. The interesting thing is that the Nasdaq has been able to buck the trend and go up while the A/D line declines...and on those relatively rare occasions when the A/D line has been healthy...the Nasdaq has absolutely soared higher...witness last year's incredible run from October to February....with a healthy A/D ratio...at least for a month or so before it tapered off. Of course the Naz is a more volatile and has many more companies in more adventuresome enterprises, so it's not surprising that large numbers of them show decline. As an addendum...don't know how long it will last but the Nasdaq A/D line is healthy at the moment and has been since the latter part of October. By the way here are some comparisons I put on another thread last week comparing last years surge around this time to this years...on the Nasdaq. The numbers surprised me. Message 11957440

To: kendall harmon who wrote (72645)	11/21/1999 10:45:00 PM
From: Northern Cougar	Respond to of 120523

Kendall re :Market performance.. here is a similar article, Along with a record high for the NASDAQ composite, which closed Friday up 22.14 points at 3369.25 (its 13th record in 16 trading sessions), the S&P 500 index also hit a new high last Thursday, the same day that the DJIA closed above 11,000 - it's first close above this lofty number in two months. While these record numbers may appear impressive, don't put too much "weight" into them! The Dow Jones is "price-weighted," which means the index ignores the market values of different companies and instead gives the most weight to companies with high share prices. For example, a $100 stock would get twice the weight of a $50 stock. As a result, through September the Dow was up 12.6%. Were it "cap-weighted," as it should be (like the S&P and the NASDAQ) it would have been up only 4.5%. But there's also a problem with "cap-weighted" indexes. For example, for the quarter ending September 30, some 65 individual tech stocks in the S&P 500 accounted for just under 25% of the index's capitalization. If not for these tech stocks, the S&P index would be down 9% for the third quarter and down 1% for the year at that time! According to a recent Wall Street Journal article, less than half the NASDAQ stocks are actually up for 1999, despite the index's huge overall gains. IMHO we're going higher my friend... N.C.