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

To: nicewatch who wrote (9426)	3/29/1999 8:23:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 99985

Donald, IMP, Frank, thanks for your responses. I guess my thoughts are along the simple principle of supply and demand. Funds (not necessary mutual funds) chase after a finite number of shares. Needless to say, more funds = higher market and vice versa. Compounding the problem is the popularity of mutual funds these days. The major difference is the "other people's money" syndrome. Mutual fund managers have entirely different objectives as the clients they represent. Their buy, sell or hold decisions rest entirely upon net fund flow under management, regardless of market condition. Unfortunately, mutual funds are now the driving force of the market. Does anyone here have a subscription to AMG or TrimTabs (the fee areas) and can comment on that data? Ramsey

To: nicewatch who wrote (9426)	3/30/1999 10:12:00 AM
From: James Strauss	Read Replies (1) \| Respond to of 99985

Frank: Good point about the mutual fund industry growth affecting a steady stream of money flow into the market... Also, the automatic payroll deductions into 401K's provides a continuing stream of liquidity to the markets... The flip side of this is the growing number of people switching their funds between equity choices and money market choices as market conditions dictate... This can exacerbate moves to the upside or downside as those end of day switches plop on the markets... Jim