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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (28764)	6/28/2002 3:49:11 PM
From: Sergio H	Read Replies (3) \| Respond to of 29382

Good point on BS and thanks for WDC peek. Ever check out When2trade.com ? See what you think of following Bollinger comments. Kind of along my investment theme more than yours, but opinion welcome. ---------------------------------------------------------- John Bollinger Recommends The Following I-Shares: IJJ, IJS, IWN, and IWS CHICAGO, June 28 /PRNewswire/ -- Bollinger Bands were created by John Bollinger to help determine entry and exit points to maximize trading profits. By using I-Shares rather than index funds, he is able to execute trades at specific target prices. Today he shares with you how to profit from his technical prowess and how to utilize I-shares in your portfolio. featuredexpert2.zacks.com . (Photo: newscom.com ) Here are the highlights from the Featured Expert column: Stock Commentary The weekly advance-decline line composed of the figures from Barron's each week has given up little ground during this decline. To our mind this suggests a timely variation on an old theme, "It is a market of groups and sectors, not a stock market." While the "market" is being "hammered" there have been sectors, groups and stocks that have been doing well and we think that will continue to be the case. We note that the High Low Logic shot up a bit last week and we expect it to continue to run at higher levels than it has in the past. One technique that may help in this market is paying attention to the new highs and new lows lists, both the daily and weekly version are useful. Pay especially close attention to the groups that the stocks on the list belong to. A few key stocks in a group or sector breaking out can be the key to getting into that sector early, just as a few key stocks breaking down can be the key to getting out of a group or sector in a timely manner. One of the greatest conundrums of the past couple of years is the discrepancy between the Investors Intelligence poll of investment advisors and the mood of the market at large. The II poll has continuously indicated a high level of bullishness at a time when most market participants were not feeling good about the market. Another conundrum: Why is it so fashionable to hate small stocks? In a word, we think it is envy. We suspect that those who are in such a hurry to declare an end to the small-cap rally love to hate small-caps because they don't own them and can't stand the thought of not having owned them, or, if they own them, they don't own enough. Note the two prior corrections since the birth of the up trend, the first quarter of 2000 and the third quarter of 2001. Two things strike us about them. First, both of these downturns occurred during periods of market turmoil. This suggests that the corrections were reflective of the fact that small-cap stocks are less liquid than large-cap stocks, so they can be expected to experience greater than "market" moves at times when liquidity is a key element -- such as when bids are hard to find. We had originally thought that the SML beta would be higher than one, but that turns out not to be the case. The beta for the SML versus the S&P 500 since April of 1999 when the small-cap run began is 0.89. So on average a 1% move in the market produces a 0.9% move in SML, but SML had an alpha for the same period of 0.0036. That means the SML is picking up three tenths of a percent per week against the SPX. That may not seem like much, but it is a big deal -- it compounds to 20.5% per year. Second, the current correction is of smaller magnitude than the first two, but it is drawing much greater comment. This suggests a greater awareness of the up trend in small and mid-cap stocks and from a contrarian point of view it suggests that the run isn't over. At a real top there are only believers, not doubters. Today we have many, many doubters. The following I-Shares are currently on Bollinger's buy list: S&P MidCap Value (AMEX:IJJ) S&P SmallCap Value (AMEX:IJS) Russell 2000 Value (AMEX:IWN) Russell Mid Value (AMEX:IWS)