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 : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jtech who wrote (41989)	2/5/2001 10:30:26 AM
From: Paul Shread	Respond to of 42787

The INDU went nowhere while the COMPX went through the mother of all bubbles. Techs have been sucking money from the broader market since April 1998. What you're witnessing now is a reversion to the mean. There's no way the Dow's going to drop to a PE of 10 while the COMPX/NDX maintains a 90 PE. As I posted here back in September, the Dow/COMPX ratio broke a two-year downtrend in September. There's been a long-term shift into value, which is even evident in the Nasdaq, where the beaten-down PC sector has been leading the Nasdaq this year. The Dow has a good chance of continuing to lead the market here because cyclicals like AA and GM are strong performers early in the rate-cutting cycle.

To: jtech who wrote (41989)	2/5/2001 10:36:52 AM
From: donald sew	Read Replies (1) \| Respond to of 42787

Jtech, >>>> What is so strange to me is the rotation from the ndx to the dow when the logical conclusion is from the dow to the comp <<<< One piece of logic that may be missing is that the P/E for the NDX is still around 100 while the SPX in the 20's. Eventually, I am suspecting that sector rotation will reverse back to the NAZ, eventually and could be sooner than most expect. Also when speaking of logic in term of sector rotation, I think its best expressed by a Yo-YO ggggggggg