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Strategies & Market Trends : Movers of the SPX -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (8)	3/7/2000 1:23:00 PM
From: fut_trade	Read Replies (1) \| Respond to of 20

Market observation: The strong stocks don't seem to be very strong now. The long portfolio will probably be down agian today. All but one of the stocks in the short portfolio is given positive returns. It's quite possible that the longs stocks will drop more than the short stocks, and the total portfolio will have a negative return - due to the overall weakness in the markets. In times like these, it would be better to exclude all long stocks that don't have a sufficiently high strength rating. The same goes for short stocks which don't have a sufficiently low strength rating. Since there are many more weak stocks in the SPX now than strong stocks, it would be better to have a larger short portfolio now compared to the long portfolio. A balanced long/short portfolio is only wanted when the market is directionless or when there are equal numbers of strong and weak stocks.