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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (24568)	8/18/1998 9:53:00 AM
From: James F. Hopkins	Respond to of 94695

LG; So far it's a more work than I thought it would be, and I'v limited my Index vs Market cap to the DOW 30, Yahoo tracks them for me, and I adjust the weighting by hand, it's not 100% accurate the way I do it,but at least I'm aware of that. The point I try to get across to people who TA on an index, is that it's like looking at the clouds in the sky and making out all kinds of faces. You can almost always identify what you want and then explain it to some one. Curves can be sought out to prove almost any premise, but people who TA or wave count an index seem to refuse to accept that the index curves them selves are like wisps in the air, sometimes high above , or way below the actual market value of the underlying issues that make up the index. Most any index can be over influenced by a minority of stocks instead of the condition of all the issues it is allegedly reporting on. On one hand this creates an illusion, on the other hand if you keep an eye on the total market cap in it, often the divergence between that and the index can signal over bought or over sold condition, but that's about the limit of their usefulness in respect to TA. Using one without the other, is a random walk that insists on past history = future performance , even though you know the history itself is often distorted. Jim