Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (39636)	4/14/1998 9:11:00 PM
From: Nancy	Read Replies (2) \| Respond to of 58727

lisa, market staying up that means market have a chance to hit new high because new money would not be scared off not to come in, it is a psychology factor, just mho. as opposite to market might collapse because it cannot stay up. staying up at least maintain the level of current momemtum, dont you think so ? they need to rotate among sectors so the hot sectors, i.e. drug, financials have time to take a breather and other sectors play catch up. That day CCI ran up 20%, at least 2 noted fund managers said on CNBC they sold either a portion or all of their CCI holding - think about it, if they have a good profit in it, may be 75-100% on CCI, at this level, wouldn't they lock it when the upside from here is limited while downside is quite big ? wouldn't they put their money into some relative lower valuation stocks which would have a bigger upside in the next quarter ? a rough calc is one point move in a dow component accounts for 4 pt move in Dow that is what I heard on CNBC, so it doesn't take too much to move DOW to new high, after so many dow stocks have split to under 100 level. cyclicals have a much larger porportion in DOW than in S&P - remember, Dow is called DJ Industrial Average - "Industrial" from the old days, are cyclicals. On the other hand, drugs have quite a large weight, so as Banks, in S&P porportionally as versus in DOW. I believe MRK, PFE are among the top 10 or 15 S&P. you want to look at the exact weighting of each industry in S&P - go ask Kevin - he should be able to give you the weighting, or at least the top 50 S&P - the biggies which matter the most. market is not weak at all - if you take the sector rotation into account that is why I told don dont be fooled by S&P looks weaker than DOW today. this is just my intuition thinking, nothing related to technicals etc.