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Strategies & Market Trends : VectorVest Prographics -- Ignore unavailable to you. Want to Upgrade?

To: Darth Trader who wrote (85)	4/19/1998 11:30:00 AM
From: Les H	Read Replies (1) \| Respond to of 140

A group that has come into favor is Telecom - Equipment. This week, they have 20 stocks hitting new highs. I own GIC which is among them. I also own CTV which supplies fiber optic cables. It stands to reason that the sub-1000 pc's led to boom in internet usage (evidenced by internet stocks). The increased load will lead to boom in infrastructure investment which was held back by cable cos attempting to improve cash flow and by mergers. There was an analyst comment regarding investment increasing from 400M to 700M this year. Other groups with a lot of new highs are Textile - Apparel and Retail - Apparel with cheap Asian goods coming soon. And Closed-End Funds, most of the European funds are hitting new highs. There were over a 1000 new highs this week it is hard to discern new trends. Another possibility is to look at the new lows list and look for shrinkage. Those will likely only be good for short bounces due to overhead resistance. Also, the Dow/S&P are now 13 weeks in this run. I believe the first top may occur by first week of May. The next run in April/May/June will be led by small caps with a severe correction after the second top in late June, early July. The Value Line Extended Survey of small cap stocks now has a 20% lower P/E than the Dow/S&P. I ordered 4.0ext to enable more backtesting.