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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?


To: DlphcOracl who wrote (12706)3/22/2001 6:15:00 AM
From: JRI  Read Replies (2) | Respond to of 37746
 
DO- If I may chime in....Naz had so overinflated (relative to Dow) in recent years...that we need 2000 (and early 2001) to bring that relationship back in line....historically, a 5-to-1 ratio...(ie. Dow 10,000 and Naz 2,000...which, ironically, we hit just the other day, at the same time)...

So going forward, I am looking for Naz and Dow to go down about an equal % ......I wouldn't count too heavily on a rotation thingy........Also, I know it sounds silly, but it IS easy to get fooled by absolute numbers..... 100 pts. on the Dow "feels" like more than 18 pts. on the Naz.....although it is same %.....certainly, in the press this past week, there has been a lot more emphasis on the Dow, and yet, the Naz went down a similar %..

(BTW- I believe Velo is looking for more downside on the Dow- especially particular issue than Naz...but I best let him answer that)..



To: DlphcOracl who wrote (12706)3/22/2001 9:22:33 AM
From: velociraptor_  Respond to of 37746
 
There might be some rotation into the Nasdaq but I would not count on it. The Nasdaq was far more overvalued than the other two, so the S&P and the DOW may merely be joining in on the decline.

I do expect some type of bottom to occur in about 2-3 weeks though, which should change the trend for up for the next 2 months or so.