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

To: LTK007 who wrote (36320)	3/3/2002 10:08:26 AM
From: t2	Respond to of 99280

you sure were right about friday when you said about an hour before the bell, i think this is going to be a really big day (upwards,that is). max, that was my "gut" feeling. It really had to do with the Thursday economic data being good but the market selling off late in the day. As soon as the news about the big inflows in mutual funds (Trimtabs) hit CNBC, that was it. People needed more than good economic news to buy stocks. There was the fear that there were large redemptions going on in tech funds. The NVLS update also helped. Just gave people enough confidence to go ahead and buy. As I see it the good economic news on Friday was a smaller factor to the rally that day. I would give 75% of the credit to what happened afterhours on Thursday. Just wondering whether to buy any dip on Monday for a long trade or not...probably will. Still believe Nasdaq is headed lower but we are in the middle of people funding their retirement accounts..so have to keep that in mind. Still believe the new money will go to more conservative funds that have not chased tech stocks in the past. I see that as a reason to still trade large cap value stocks (cyclicals) over Nasdaq names as the money will head into funds that buy the old economy names. My guess is they will keep adding to existing stock holdings, creating upward pressure. I am looking at the big AmericanFunds--3 are about 50 billion; looking at their holdings and deciding which stocks they will be putting more cash. They don't like tech and at current valuations, I bet they still don't! I am using this sample to do my trading.(they also had large cash positions as of Jan31). I realize a lot of TA believes Dow should be underperforming the Nasdaq near term but I don't agree with it; think it will be the opposite; whether on the way up or down. Still think Nasdaq is heading a lot lower but might have to wait until more people get caught in the trap that is being set up now. jmho