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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (20853)	6/23/1998 11:19:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Well , "the trend is your friend" is an old saying that is more often true than not. Getting on the wrong side of it can be painful. ----- I'm been tracking this head / tail thing back to last August and the picture is now forming. That beyond all the knee jerk stuff, caused by index funds , and MO MO funds, you have a third party of funds that do Asset Allocation. So of the I.F Mo Mo and A.A. funds the first two set up most of the knee jerk , and work in a trading range. The A.A. does more to the MID term trend, and Political considerations setting the longer term trend. Bonds and currency all fit in here but effect both or all the windows. Asset Allocation is no small part of the equity market, the picture seems to be That they rotate into the Liquid Blue Chip Stocks, ( and bonds ); as they ease out of Mid & Smaller cap stocks, and do this in a way to let the indexes fall. Then at some point they start moving back into the Mid Caps, and this stimulates the indexes and lets them take some profits out of the more liquid stocks. It's not just a rotation, it's sort of how they use the new money coming into the funds, first aiming it at blue chips, then latter Mid Caps. They parlay the new money with the rotation, that lets them take profits first from one , then the other. These funds are not set up to trade stocks as fast as the MO MO or Index Funds, they more or less poke along..and that sets up the more mid term trend of the indexes, it's no fixed pattern to the time on that trend, as they also let the market tell them, and I believe they also look at that via the divergence & convergence, and aim their new money to take advantage of that. Jim