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.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (13844)	1/5/1999 7:50:00 PM
From: Jake0302	Respond to of 74651

Lucius Lamar wrote "The Dow theory was invented in the days when the railroads carried most industrial products. The theory was that if companies were making a lot of goods and profits the railroads should have lots of shipping volume and profits, so the transports should confirm actions of the industrials. Today the DJTA has a lot of airlines, goods are carried by truck etc. so the underlying theory isn't valid. Despite this it seems to work more often than not. Market breadth means that most stocks are going up rather than averages being pulled by a few big caps. That becomes important if you own small cap rather than big cap stocks. Historically wide breadth ( a good A/D line) has been good for the market. In the last few years computers have allowed big companies to get ever more dominant so the value of this may be changing." Thanks for this useful background on the Dow Transport theory. It just doesn't seem to be a big deal in the digital economy. Consider the exception to the underperformance of the transports: FDX, which has been going up because Barrons said it was a cheap internet stock. The exception that proves the rule no longer applies?