Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Haim R. Branisteanu who wrote (39472)	2/9/2000 1:24:00 AM
From: pater tenebrarum	Respond to of 99985

Haim, all correct, but these divergent internals have been with us for so long...they're just not useful for timing purposes. the rules have to a certain degree been suspended by the explosion in the money supply. however, the divergences have worsened considerably. just to give an example: in April of '99 over 60% of NYSE stocks and over 90% of the stocks comprising the OEX were above their 200-dma. now we're looking at only 27% of NYSE stocks and 34% of OEX stocks...there's a whole litany of divergences in fact, but this is one of the more glaring ones. it may explain why index put dollar volume is so low...the indices are simply not a useful hedging instrument for the AVERAGE portfolio anymore, since obviously the majority of stocks is in a bear market, while the constantly re-weighted and re-jiggled indices are not. regards, hb