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

To: Hawkmoon who wrote (7393)	3/3/1999 11:19:00 AM
From: NickSE	Respond to of 99985

Ron, Since the tech wreck has begun, the market breadth has been terrible other than some gains in the financials and transports. The NYSE A/D line continues to trend downwards, already 40% lower than at the April high. Equity MF net inflows for the past few weeks have been between $1-2 billion which is low by bull standards. And Feb inflows have been 1/2 of Jan's. IMO, not good! Without further liquidity other than from the FED, we will either continue to tread water or sink like a stone. I'm still watching the RUT, hoping and praying that we see some form of orderly reallocation from the toppy big caps to smaller issues. (However, I am not under any illusions.) IMO, there's one problem with this idea. The smaller companies are less likely to have undertaken Y2K remediation due to their smaller budgets, whereas most of the big caps have at least started. This may make small cap investors a little nervous. And the RUT continues to be less exposed to overseas turmoil than the big caps, with the kicker that Y2K inventory building should boost profits for small caps to boot. Regards, Nick