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Strategies & Market Trends : Drillbits & Bottlerockets -- Ignore unavailable to you. Want to Upgrade?

To: HG who wrote (3213)	2/9/2001 10:52:50 AM
From: John Pitera	Respond to of 15481

Tony Dwyer speaks words of wisdom this AM: 2/09/01 8:29 AM ET This morning as I went through the market charts and prior day stats, more evidence that all the market indices are in a trading range hit me. The DJIA again reached the 11,000 level, only to meet resistance, become overbought and lose momentum. The Nasdaq is still in the process of testing the January lows, but the new high/new low list suggests most stocks are holding up pretty well given the index weakness. Despite the pullback and Cisco (CSCO:Nasdaq) news, there were 80 new highs and only 30 new lows. Anytime the Nasdaq is weak, the Dow becomes strong. There has become a predictable rotation out of tech and into defensive stocks and vice versa. This happens when one becomes overbought and the other becomes oversold. Until something breaks that trend, it should continue and can be taken advantage of. A week ago, the Nasdaq was overbought and the DJIA was oversold. Right now it is the reverse.