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

To: Saulamanca who wrote (53565)	9/22/1998 5:39:00 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 58727

Is this the market breadth everyone has been asking for? Slow bleed in big caps with a recovery in smaller cap stuff, while the index churns aimlessly.

To: Saulamanca who wrote (53565)	9/22/1998 5:40:00 PM
From: AlanH	Respond to of 58727

Jim, re:New Highs It does make you wonder. Would YHOO be setting new all time highs in a bear market? Utilities index hit new highs today also. Sounds like uncertainty as to where to allocate cash... lots of greed, impatience, IMO. As far as internets, I wouldn't rely on these as a barometer of market health; these represent the height of mania and are subject to artificial supply/demand dynamics. My hunch is that the most speculative money will remain in the market far too long, thereby levitating internets. Concurrently, shorts may prematurely target inets as easy prey, ironically contributing to support, upside. Concerning utilities, far be it for me to argue with John Bollinger. However, utils are a proxy for bonds, and the bond/stock disconnect is in play. (I see this as a natural process of competitive vehicles.) A rally in small caps would not surprise me, provided that borrowing power remains strong. And, I have no doubt that pundits will point to small cap rallies as bullish. IMO this is simply a leveling of capital within equities. There is also much talk of foreign funds ex-pat'ing for US equities. Maybe so... the dynamics are far too complex for a simpleton like me. I guess we'd need to know who holds the cash, how much they still hold (ie, wealth evaporation), how risk averse they are toward additional losses in US equities, etc. Seems to me that if I'd lost 25-40% in "local" equities, I'd be somewhat conservative (ie, seek alternative vehicles). BWDIK Good luck, Alan