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To: Ralph W. who wrote (156566)3/21/2002 1:56:24 PM
From: Horgad  Read Replies (1) | Respond to of 436258
 
Generally, I agree with you on avoiding jumping out of leaders into laggards, but the laggards that I am referring to are only laggards in a very short term sense. In the past, they performed just as well as the current leaders.

For example, I was thinking about rotating out of GOLD which was trading at its 52 week high today and into HGMCY which is about 10% off of its 52 week high. Both touched or came close to their 52 week highs twice last month at about the same time. (Their charts are almost identical.) Now they seem a little out of synch.

As for stocks that are consistently under performing their peers, I agree with you that rotating into them would be a waste of commissions.

In any case, I didn't make the trade, but it will be interesting to see if HGMCY plays catch-up with GOLD or not.