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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: IKM who wrote (6426)	12/18/1997 9:02:00 AM
From: James F. Hopkins	Respond to of 13594

IKM; click back, like you said money wise it's a one point drop on a 30 dollar stock..but well that's not all there is to it, it's the volume..and the market cap..a 1 pt drop on a $139, can sometimes and often does drop more market cap out of the stock market, than a 4 pt would on the 30 as the 30 has such small market cap..money wise I'm often talking in respect to the over all market..any drop in MSFT..GE IBM..involves a lot of money even a small one..were companies with small market caps can have a considerable drop and not as much money has actually moved. I have hand made indexes that weight via market cap, and can tell that the way the Dow and such are weighted..they often toss you a curve telling you the market is up..when in reality the market cap is down..when that happens you can bet the DOW will soon follow it. Market cap based indexes can at times give you a leading indicator when you see them diverge from the price weighted indexes.. Jim