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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (45749)	8/11/2001 12:54:05 AM
From: Londo	Read Replies (1) \| Respond to of 56532

About LTK's prediction of Nasdaq 1000.. You'll have to quantify things a little further than that. Specifically, half of the Nasdaq 100's market capitalization is embedded in six stocks (MSFT, INTC, CSCO, ORCL, DELL, AMGN).. so if you wiped all of those companies down to zero market cap, you'd get your required drop down.. And the combined market cap of those 6 companies is roughly 900 billion. Lets pretend that one half of rest of the Nasdaq is 100 billion. So you'll need to knock off a trillion dollars of market cap from all the companies that trade on the Nasdaq.. my question here would be: From where? The only problem I have with the Nasdaq 1000 number is that there are (enough) small and mid cap companies that could probably keep up the slack.. That said, 1400 sounds better. :) My take is that if one must go long on this market, it's with companies with low capitalizations, strong balance sheets, and positive cash flows in non-networking/telecom/internet sectors. Anyway, keep up the interesting thoughts.