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To: Clappy who wrote (711)	4/5/2001 1:22:26 PM
From: Didi	Respond to of 2505

Enjoy, apply & prosper, Clappy. Good luck :-). di eom

To: Clappy who wrote (711)	4/7/2001 1:14:09 AM
From: Didi	Respond to of 2505

Clappy, more "smart money indicator"... Beyond IBD's stats in my earlier PM to you. More "Cherry Blossom" festivity with my family this weekend. So beautiful!. Good luck :-). di ===================================================================== community.metamarkets.com Selected highlights + rearranged for ease of reading. >>>I mentioned the "smart money" indicator, described by its orignator Don Hays, in Barron's this week. It is simply the change in the Dow in the first 30 minutes of trading subtracted from the change in the Dow in the last hour. The theory is that the first 30 minutes are dominated by the amateurs and the last hour is dominated by the professionals. If the result is positive it is taken to indicate that the smart money is buying and if it is negative, they are selling. I have computed it now for just three days. On Tuesday and Wednesday the smart money was buying and yesterday they were selling big time. It remains to be seen if they were really smart. There was a major switch in leadership yesterday as well. Looking at the ETF's, there was mass migration from the value to the growth issues. The large growth did very well while the small value barely eked out a gain. Pretty much no one was ignored though, money was made by everyone except the bond holders. The put/call ratio dropped to .70 today, from .73 on Wednesday and .99 on Tuesday. This shows that some traders are moving out of puts, but there are still plenty of bears out there. I have reproduced the DAILY ARMS chart just below. Note that the ratio between the up and down volume was 6.4. This is rather rare and generally means that there will be some follow through. Martin Zweig writes that when the ratio reaches 9:1, that there will be a rising market for the following 6 months. ... He doesn't comment about a 6.4:1 Ratio, but it is not without precedent, as you will see in the next chart.<<< ------------------------------------------------------------ garzarelli.com ...4/6/01 >>>Even with lots of negative news, looking forward, we expect earnings to rebound next year and with good valuations, we would be aggressive buyers of our attractive industries right now. We believe the S&P 500 index is in the process of forming its final bottom. More stocks on the NYSE have been rising than falling since October and on most other indices since December. <<<