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In a message dated 5/22/99 12:33:05 PM Eastern Daylight Time,
petena9090@xxxxxxxxxxxxxx writes:
<<
Being short the futures sounds like something that would itself need some
insurance (hedging) unless you are awfully sure of a DOW crash. And if you
are sure of that, why hold the stocks?
Why not write covered calls?
>>
HOW ABOUT YOU JUST SHORT VS THE BOX FOR THE
30 - 60 DAY PERIOD YOU ARE CONCERNED ABOUT.
also, you could sell outright 3/4th of holdings and park the proceeds
in Money Market at 3x the dividend yield of stock. Also, you
can buy CAllS, which allow you back in to the very stock that
you exited, in the event you are wrong. It also, creates an
off setting capital loss if not exercised as a offset to the gains
that you have taken.
If the market breaks here, it is not "crash insurance" you
need, it knowledge of how to trade a bear market.
Try obtaining Harry Shultz's classic, Bear Markets, how to
survive them...through interlibrary search ...or the current
best seller BEAR MARKETS, by John Rothchild.
Tactics are easy. KNOWING where you are, is more
important.
There is little or no time left, IMHO,
The addage "Sell in May, and go away" maybe more applicable
this year than some. In that it is now the May 23rd, you can
SEE that if a break comes, it could prove fast and furious.
Sell the weak sisters NOW, Research later.
All the best,
GerryB
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