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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?


To: OldAIMGuy who wrote (2067)6/5/2006 1:16:41 PM
From: James F. Hopkins  Read Replies (2) | Respond to of 2103
 
Tom I love those Charts, Thanks..However as Much as I
love them I'm still puzzled as to the why the equal
weighted have been doing so much better than the cap weighted.
--
There is something Phoney about the market when this happens
in an up market and it's been Phoney for some time.

By rights all the index funds to track an up market should
be having to buy more and more of the larger caps..
Which is what was going on before the 2001 fall.

I can think of several reasons this might happen but
I can't put my finger on any one of them, more than likely
it's a combination of most of the likely suspects.
With Hedge funds at the heart of it.
No matter what all it is , I don't think it healthy
over the long term, as it has to be bleeding capital
out of the market while at the same time using several forms
of leverage to move the market higher.

However just tracking and knowing the same group
of stocks are doing better NON weighted than weighted
could be useful , Like short the weighted ETF and go
long the Non weighted one..Thats a lot of leverage
with out interest if you use the short money to buy the long money and ride the tide.
Jim