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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: bobby is sleepless in seattle who wrote (380)	6/9/2001 11:45:35 AM
From: Susan G	Respond to of 26752

a good laugh... Message 15887962

To: bobby is sleepless in seattle who wrote (380)	6/9/2001 12:12:39 PM
From: Susan G	Respond to of 26752

<g> home.att.net

To: bobby is sleepless in seattle who wrote (380)	6/11/2001 12:01:47 AM
From: Susan G	Read Replies (1) \| Respond to of 26752

Not Good News for NYSE Stocks By Helene Meisler Special to TheStreet.com Originally posted at 9:54 AM ET 6/8/01 on RealMoney.com Everyone's watching technology stocks and the semiconductors Friday, especially after Thursday's action in the Philadelphia Stock Exchange Semiconductor Index, or SOX. But while most eyes will be focused on the tech sector, we should look at what's happened in the past several trading sessions on the New York Stock Exchange. There's been a subtle change on the NYSE. I mentioned this Wednesday, when I pointed to the less-than-spectacular rise in the advance/decline line on the day the S&P 500 tacked on 16 points. The A/D line was positive, but almost the same reading we'd seen the day before when the S&P was up only about 6. That doesn't show an expansion of breadth, and that's where the change has taken place. A very good advance/decline line has hallmarked this NYSE rise. The A/D line held steady on plenty of down days; sometimes it was flat or slightly negative, and many times it was positive, despite the averages moving lower. But in the past two weeks, that has changed. Back on May 23, the market took a dive. The NYSE A/D line provided us a net reading of negative 981. That's certainly not a great reading, but it was a day when the S&P lost 20 points, so a poor A/D is to be expected. The next day, the S&P rebounded only 4 points, and the A/D line added 118. That's the first yellow flag because for the two months before that, since the late-March lows, a day in which the S&P rose 4 points, especially after a fall of that magnitude the day before, would've been greeted with a significantly better A/D reading. For example, on May 3 the S&P fell 19 points, and the A/D reading was about negative 600, clearly a much better reading than the negative 981 we saw two weeks ago. But the days after that drop were key: In the following six trading days, the S&P lost another 3 points, but the A/D line added about 1,500 issues. Now, in the past three trading days the S&P has added 10 points, and the A/D line has added only 382 issues. That's quite a change from what we saw just one month ago, when breadth was clearly outperforming the averages. And this has manifested itself in having fewer stocks making new highs in here. I've already shown Wednesday how the number of stocks making new highs is no longer expanding the way it had been in April and May. Thursday, we had 40-plus fewer stocks making new highs vs. the day before, and the market was up -- not to mention that the new lows expanded as well, although not meaningfully. Technology stocks have proved time and again that they are not market leaders. They are lone rangers. These stocks rally among themselves and leave everyone else out of the party. In fact, most investors seem to view all other groups as a place to park money until tech gets hot again, sort of the way folks used to put their money in a money-market fund. But now that people think things are all hunky-dory in techland, it seems they're once again funding their tech purchases by selling those Old Economy names. All of this is occurring while the Volatility Index, or VIX, continues to hover at low levels. This is not good news for the NYSE stocks. thestreet.com