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

To: Killswitch who wrote (10909)	3/1/2002 4:03:03 PM
From: Killswitch	Read Replies (1) \| Respond to of 19219

Well darn, the Naz couldn't wait to move into that gap. Oh well :-) In other news, I've seen two different pundits discussing today the idea that the Naz might do some catching up to the Dow. On article is here by Tony Saliba which has an interesting chart showing the ratio of the Dow to Naz: thestreet.com The other was a comment (also on realmoney) by James De Porre: "Mutual Fund Elephants 3/01/02 02:25 PM ET Women are like elephants. I like to look at 'em, but I wouldn't want to own one. -- W. C. Fields Mr. Fields definitely is asking for trouble with that comment. When I think of elephants, women seldom come to mind. I think of big, lumbering mutual funds. If you are trader, it is sometimes helpful to try to think like someone who manages a big fund. Close your eyes and imagine that you have a billion dollars to invest. You need to produce a return that outperforms the S&P 500 by a couple of percentage points to get the big bonus at the end of the year. You can't short stocks, and you can't carry a lot of uninvested cash. How do you play this market? You just got some cash in and you sold some of the highflying cyclical stocks, so you have money to put to work. The Nasdaq is trying to find a bottom and is making some pretty good attempts at breaking its downtrend. You don't want to be on the sidelines when the Nasdaq turns up. The DJIA is flying and you need to keep up. You have no choice but to be a buyer, and if you get a dip you are a big buyer. That is what is going to support this market right now. Fund managers are going to step up and buy weakness when they have cash to work with. Fund inflows have been light, but as Jim Cramer noted in a column, they have picked up and that is what supports rallies like this. If the flows continue, watch for the dip buyers to get more aggressive. I'm planning on joining them if the opportunity arises."