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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (11228)	7/9/2001 8:21:03 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 52237

Well the most liquid stocks in the NDX toady ran almost a full 1% above the the less liquid ones. That hasn't happened in a long time. A lot of this market was being held up ( even during the down trend ) by less liquid stocks not going down as fast as the liquid ones. An example of what I'm saying is on this chart.. finance.yahoo.com^NDX&d=c&k=c1&c=^ixic&a=v&p=s&t=6m&l=on&z=m&q=l As you can see the NDX has been dropping faster than the Nasdaq.. That's always going to be a bear market at least for tech. When things get in gear the NDX beats the Nasdaq , no matter how strong the little guys get if the Big boys keep getting killed it creates a liquid problem, and a crunch on buying power..and that always spills over..and the market just has to keep selling off until those more liquid stocks can get a footing. Switching into small caps can really be a killer if the liquid crunch gets bad enough as no matter what he pundits say; a real crunch eventually causes insituations ( pension funds ) to sell off the small caps ( their winners ) as they get strapped for cash to meet their pay outs and when that happens they fall like a rock as the Small cap guys are not liquid enough to raise much money from. ---------------- Today not only did the NDX do better than the nasdaq..what looked even better was that the more liquid stocks in the NDX did better than the less liquid. Of course that may not continue, and if it don't we go down more, however the way it happened today sort of stealthy like is also a plus. ------------------ I have had my Mo Mo index reverse fast and even fool me really bad one time, however it's been right a lot more often than wrong. At least enough that I don't ever bet against it. The chart above is a 6 mo chart and shows how the NDX falls faster in a down trend..the next one is a 3 month chart and you can see that when we did rally the NDX out did the nasdaq, however in mid May that stoped, and down we went..then a brief rally that ended around June 8th..and the NDX again dropped faster Well my Mo Mo works like that but ( it's shorter term) and looks inside the NDX and I haven't seen it show anything good in so long that today surpised the hell out of me. finance.yahoo.com^NDX&d=c&k=c1&c=^ixic&a=v&p=s&t=3m&l=on&z=m&q=l That still shows the NDX droping fast , however a reverse set in today and it was inside the NDX as well. Get that two days running and it can be good for a 10% run up, or more for as long as the liquid stocks lead. If they break down I'll get short. ------------------ quicken.excite.com the black line is the NDX ... it has to stay above the nasdaq line my Mo Mo does the same sort of thing inside the NDX; but lets me see more detail, and shows IF the NDX is really strong or IF it's the non liquid stocks in it making it look strong. Today it had the real thing going for it, tomorrow could produce another picture I want to see it confirm before I get any more long. I'm only 20%..in fact a tad less than that. Jim Jim