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

To: RR who wrote (58673)	7/15/2003 10:34:31 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 65232

Maybe I should have named the index Turtles instead of Momentum.. This will take a bit to load.. finance.yahoo.com It is the 15 charts of the Largest Caps in the S&P, compared to the S&P over 5 years and will give you a big picture. The dynamics of more and more Index mutual funds tracking the weighted S&P forces them to buy more of the big caps in upturns, and to sell more of the big caps in down turns. --- Beyond that are all the other mutual funds trying to beat the S&P and take advantage of this Mo Mo effect..they jump into these most liquid stocks as they can jump out fast. --- All in all, when things are positive the 15 BIGGEST CAPS "as a group" will go up faster than the index they are in, if you look good you will see they dumped faster than the index just as the market started down. Beyond that the Buy and Hold people who stayed with these 15 did over 20% better in 5 yrs than the S&P. The only thing used to pick them was to find the 15 with the largest market cap.. Turtles or not they will beat the index they are in over the long term thanx to indexing.. and go up faster during run ups...and signal a down trend by dropping faster at the start of the down trend. --- Now at this time.. finance.yahoo.com the 3 month chart is very mixed, and does not yet confirm a lot of money coming into index funds..while they are getting better they are not yet saying we are in a bull market.. ----- AS a group they will show the trend ..by out running the index they are in, it's built into the dynamics of indexing.. Jim .