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

To: eichler who wrote (66793)	1/13/2001 2:47:43 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

eichler: From Don Sew's Update on SA, there is once again extreme sector rotation with money leaving the dow and entering the nasdaq. I have made such speculative comments myself, in fact I speculated in advance that that this would happen back in early 99. However, one must keep in mind, that this is what it is, speculation. Of course, it would be nice to have some reporting mechanism in place to confirm, I as of yet, have not been exposed to one. We have seen money chasing the "in favor" issues. Will this continue? I "think" at least for now the answer is yes, but not on the same scale! The following chart reveals the divergence between the two major exchanges as the NASDAQ inflated into a internut/hi-tech bubble. Of course the chart also reveals much of that divergence or bubble if you will, has now been deflated. Keep in mind that some divergence remains. Will that divergence eventually be complete rung out? Could we possible see an inversion? Of course, the question you have to ask yourself if you are expecting EXTREME SECTOR ROTATION from the Dow to the NASDAQ once again is, "will that bubble re-inflate" and if so how much? quote.bloomberg.com Regards, LG