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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HighTech who wrote (543)	12/5/1998 6:09:00 PM
From: frenze	Read Replies (1) \| Respond to of 99985

Tell me. Why do I want to own a stock that is going to spin-off or ipo part of it's company? Like mall or navr. Can anyone refer me to a site that explains just how the stock of the spin-off is distributed or if it is? Just have'nt figured this out yet. Thanks

To: HighTech who wrote (543)	12/5/1998 6:57:00 PM
From: j g cordes	Read Replies (3) \| Respond to of 99985

HiTech.. "so what's the conclusion from this data." The large indexes have received the lion's share of funds flow through the 90's. This has been a well commented phenomena or recent times. This extra weighting of money into the 100, 500 and Dow average has skewed the historical pattern of market cycles, especially the late market topping observation of smaller stocks running to extremes (which some are now saying the internets signal). A 200 day cycle is a traditional moving average measure which I think may be past its relevance due to this change in index dominance. Its certainly not as relevant to compare the large cap indexes to the Naz as it once was because the cash inflow placement pattern has changed. However, it would be interesting (and perhaps predictivly profitable) to identify and count the number of stocks within an index that were well above their index average in July and see if within that index now there's a similar excess. I don't think the same stocks will always be extreme in each cycle, but the number of extreme stocks might correlate. There may be a general selloff rule which applies to index behavior when a percentage of stocks go to extremes. Jim