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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (23786)	9/4/1998 1:00:00 AM
From: Math Junkie	Read Replies (1) \| Respond to of 70976

Somebody increased an estimate? How odd...

To: Gottfried who wrote (23786)	9/4/1998 1:51:00 AM
From: 16yearcycle	Read Replies (1) \| Respond to of 70976

What I am looking for, The assumption is the dow should trade at 5x the nas. As you can see, when it gets too high or low, corrections occur which bring it back in line. The nas overshot this ratio in July in a big way, which indicates a severe correction until in line again. On the contrary, should the dow move ahead too far, expect an out performance by the techs. I consider it a "sell" signal when the nas has run 5% past the 5x ratio. The farther it gets ahead, the more speculative the market is getting. If the nas is under performing, say it is at 1400 and the dow is at 7400, then it is a buy signal. This has worked well for years, but especially well if you use months of nas out performance as a sell signal. We would be neutral now, and waiting for the market to give us a hint.