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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (8943)	10/11/2001 11:13:35 PM
From: James F. Hopkins	Respond to of 19219

LOL; Some Mutual funds have been sitting on a lot more cash than they normally do..and now it's panic buying time. I notice last week it looked like a big balanced fund ( assest alocation type ) was doing a re-balance..sellin off bonds and bottom fishing for stocks to get their assest alocation back on target. Yesterday another big fund did the same..and word leaked out late in the day. Thoes plain old assest alocation guys that run the the not very exciting widow and orphan type funds have BILLIONS of dollars in assests..Their bond side does good when rates fall and if stocks are falling they get off their target ( they only make about 10% a year but they do it year after year after year with very few exceptions, and they pay a dividend. So if you look at the chart you have to consider it's not showing what they pay out. finance.yahoo.com The tip off is that when they adjust by selling bonds and buying stocks is interest rates tend to tick up a tad the same time stocks do. The Fed announced it was going to sell some bonds today as bonds were getting scace..well some one wanted to beat them to the market ( I think the fed canceled after seeing the move ) --------------------- It was the old neerdy funds that started this rally..the maket trades on liquid more than earnings, and the hot shot growth fumb dumbs will fall all over one another onec a move starts, they don't mind losing money as long as the others are losing too, the cardial sin is to fall behind your peers. Jim PS The type fund above is the type my sister buys, it would have a lot better up trend if you let the dividends stay in it for more shares. I look at her simple ways and shake my head, as over the years she has beat me and doesn't even look at what's going on, but she hasn't had half the fun I've had.