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

To: bobby beara who wrote (36209)	1/8/1999 11:52:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 94695

I received this from PEI. PEI: "Nasdaq Volume and the Art of Cooking" Date: Fri, 8 Jan 1999 23:09:45 -0500 From: James Smith <JSmith@mail.pei-intl.com> The study of "volume" is something like cooking. A little too much salt to one person is not enough to another. But to me, it tastes like too much salt! The excessive volume figures on the Nasdaq in the past few days (1.21Billion today; 1.14B yesterday; 1.2B the day before) suggest that the NASDAQ is at or near a top. Extreme volume which isn't matched by equally impressive price action often implies "distribution" before a fall. For every eager buyer there is an equally eager seller, thus the market goes up--but not to the extent that it should have done given the huge volume posted. The volume figures on the DOW are much healthier and the percentage price gain is more impressive. New Highs on "HIGH BUT NOT EXCESSIVE" volume suggests that 10,000 is within reach. Perhaps investors are shifting out of the Nasdaq into the DOW. Will investors get spooked at 10,000 on the DOW? We'll know in few days time--- but so far volume does not yet support a bearish view on the DOW.