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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (58649)	7/13/2003 3:53:52 PM
From: lurqer	Read Replies (1) \| Respond to of 65232

If I follow your argument 1) Cheap money liquidity results in cheap Futures leverage play. 2) Trough Fair Value this implies "pressure" for index funds to buy Big Caps. 3) Believing that the "run-up" so far has been mainly small caps, then comparing the biggest caps in the S&P with the index, should revel when the anticipated big cap move commences. Got it? it's not real healthy as of yet, but it is getting better, however a relapse has almost a 50% chance. Guess I'm having trouble with a healthy market that's based on pumping. For me, the higher the pump and the more extended the valuations, the more unstable the market becomes. So while Futures escalation may "spill" into big caps, I'm not sure how that would increase the "health" of the market. I don't see any relapse ( if it happens ) getting as bad as it was.. but one can never tell if other complications will mess things up. Stressing your proviso "one can never tell if other complications will mess things up", we're in agreement here. Thanks again for your efforts to explain your perspective. I share your propensity for creating indicators.<g> lurqer