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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: t2 who wrote (28962)2/9/2002 8:29:17 PM
From: Psycho-Social  Respond to of 99280
 
Nasdaq vs S&P:
I've frequently referred to 1yr Info Tech Business Expectations, which is a reliable leading indicator I've developed and validated. At the start of 2002, I started a comparable indicator (along with 3-5yr expectations as well) for the broad Market, i.e. the S&P 500. I've been hesitant to trade on it because it's new and untested, but it seems to be functioning comparably to the Info Tech leading indicator.

Recently, 1yr Broad Market Bus Expect has been starting to trend up, while 1yr Info Tech Bus Expect has started a new downleg after a brief upmove. As you may have noticed, the S&P has been performing much better than the Nasdaq during the past week or so. The divergent paths of the two 1yr Bus Expect indicators suggests that pattern of better S&P performance will continue. The S&P correlated indicator is still experimental, but I'm going to switch a portion of my investments from Nasdaq correlated to S&P correlated funds.