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

To: Les H who wrote (11599)	4/20/1999 8:33:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 99985

What happens if money departs in earnest. The recycling between sectors can't be accomplished and we may just spiral lower.

To: Les H who wrote (11599)	4/20/1999 8:34:00 PM
From: fedhead	Respond to of 99985

Its the same money bieng rotated. So when we move from cyclicals/small caps to the few techs breadth narrows but indices rise . Reverse is true when money flows out of tech into cyclical/ small caps. Thanks Anindo

To: Les H who wrote (11599)	4/20/1999 8:55:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

YES!!! That is exactly what is happening. I couldn't put into into such succint words, thank you. I've been watching it happen with the stocks I track. Unfortunatley, I am largely ignorant of index funds so I couldn't see it happening on that scale. But, the recirculation you described is right on the money! Each time it happens, the chest of this great beast gets puffed up a little further (DJIA) and everybody (J6P) can say all is well. Each time I mention something that was unhealthy for the market, to a friend at work, he retorts, "the DJIA is in record territory", and I respond, "all of our 401K funds are losing money!