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

To: Steve Lee who wrote (15145)	12/1/2002 1:24:24 PM
From: GraceZ	Read Replies (2) \| Respond to of 19219

The thing you always have to ask yourself is, if the majority is selling, who are they selling to? The public has been selling for over a year after almost a year of buying the decline, mutual funds and money managers have been selling for well over a year. The members became net long mostly against their will and against a back drop of their own heavy distribution during each and every counter trend rally because, like the public, they are convinced that stocks are worthless. One could say they got left holding the bag, yet this is not their historic roll in the market. During the rise to the highs they were net sellers, during the last year of this decline they are net buyers against the public action, but not because they wanted to be, someone has to buy what the public throws out. It's that function of taking the other side of the extremes of the public action which allows them to always make a pile while the public investor gets bond-like yields, the average money manager or mutual fund manager is lucky to match the indices and most traders go broke.

To: Steve Lee who wrote (15145)	12/1/2002 2:36:16 PM
From: J.T.	Read Replies (2) \| Respond to of 19219

Some of the outflows in equities has benefited high grade bond funds as reported by amgdata: 10/4/02: 3rd Qtr Equity Fund Outflows ($51.1 Bil) & Taxable Bond Fund Inflows ($43.5 Bil) Largest on Record Taxable Bond Funds reported record inflows of $43.5 Billion. Government Bond Funds received $31.7 Billion, 73% of the total, while Investment Grade and High Quality Corporate Bond Funds accounted for the rest of the inflows. *********** Now the smart money is already ahead of the crowd and moving into junk bonds. All you have to do is look at the junk bond market screaming higher day after day to see this economy is not going into double dip. As for the NYSE Members, I suggest you do your homework on the Dean of of Stock market research: Norman Fosback. Then decide for yourself - you be the judge. I have done my homework. An assistant and I are now researching the NYSE member data prior to the 73-74 bear market and specifically looking at the 30's and 40's on this very subject. Best Regards, J.T.