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If I remember correctly, that is the basis for the AIQ program. First, the
market timing, than sector timing and than you can scan inside the sector
it self. It is also the philosophy behind the C-A-N-S-L-I-M system, where
you can check out the industry's relative strength first and look for the
highest relative strength stocks within the industry. This is a great
system in theory, but I'm afraid that the IBD guys (New USA fund) have been
less than successful at demonstrating it. I hope that you are implementing
it better.
Even if you are a technical trader you will see the same phenomenon of a
whole sector rising and carrying the stocks with it, you will get buy
signals on all the strong stocks within a sector.
Shay Horowitz shay@xxxxxxxxxx
Zeus Investments, LLC.
13918 E. Mississippi Ave. http://www.zeus-holdings.com/
Suite 245
Aurora, CO 80012
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> From: Gregg Murray <eastus@xxxxxxxxxxxxxxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Gen: a thought worth remembering!
> Date: Wednesday, October 15, 1997 10:44 PM
>
> Don,
>
>
> It appears you're on the right track on this. A few months back
> <italic>Investors Business Daily</italic> reported that some studies have
> indicated that a stock's performance is 49% due to the industry, 31% due
> to the market, and 20% due to the company itself. I think intuitively one
> might believe that the company itself has a much, much greater effect.
>
>
> Gregg Murray
>
> 10/15/97
>
>
>
> At 04:02 AM 10/16/97 +0000, Don Green wrote:
>
> >The basic movement of a stock is determined by the following.
>
> >
>
> >70 percent of a stock's value is based on the general movement of the
>
> >overall market.
>
> >
>
> >20 percent is based on the industry or sector the stock is in..
>
> >
>
> >10 percent: only 10 percent of the value is based on the actual stock
>
> >itself...
>
> >
>
> >Regards
>
> >Don Green
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