|
PureBytes Links
Trading Reference Links
|
Why is it that someone has to defend a position? With no position, you have
nothing to defend to yourself or your peers. At that point you can look more
clearly at the situation and analyze what the proper thing to do is under the
current market conditions. Constantly adding to a losing position does not
seem reasonable to me. It might to some. Will this be like the 1970s or like
1987? No one really knows. I will just look at the charts and do what they
tell me to do. The answer is correct 80% of the time. If this is like 1987,
look out for Monday. That time the market makers and specialists along with
the big houses covered most of their shorts on Friday. They had no bullets
left for Monday. If you have another Black Monday will the fed step in, like
it did then, and give unlimited credit to the specialists and market maker
clearing corps. so they can stay in business? Will all those who bought stocks
on the credit cards, home equity loans, and their 401K and IRA get the margin
calls and be forced to liquidate? What will fund liquidations do to the
market? Will there be an internet fund left after this debacle? Will all
those people who were going to get rich selling puts love owning those stocks?
If so what will they use to buy them with? So many questions so little time.
Have a good week end. Ira.
wong wrote:
> Hi All:
>
> MSFT traded down to my $75 price and below. WMF AH also traded to $ 5 5/6.
>
> Unfortunately, when I checked 5 minutes ago, my order was still not filled.
> I was told by my broker to check Monday morning.
>
> The game plan: If no fill today, then I would try to buy at $ 5 3/4 again
> on Monday.
>
> When filled, the next buy level on MSFT will be around $63, and the leaps
> will be around $ 3 1/4.
>
> I see that most of the posts are now quite "bearish". That's certainly
> quite interesting.... Most likely the majority of you may be right. But
> just in case...
>
> As far as I'm concerned, I'm still sticking to my point that the market is
> not bearish yet, even though NASDAQ is down 35% from its high.
>
> If anything, without lifting his finger, Greenspan has achieved his
> objective ofo deflating the market bubble.
>
> Most people are saying in the next FOMC meeting, he will raise the interest
> rate by 50 points. Perhaps with the "deflation", he may not need to raise
> 50 points. Maybe 25 points will be enough. Well, we'll know very shortly.
>
> Most high-flying internet stocks have plunged 75% or more. Even the good
> and solid non-internet stocks have plunged 35-40%. There's a lot of
> pessimism out there. Good for me. The more pessimsim (= oversold), the
> better, and the eventual rebound, when it comes, may be very sweet.
>
> Remember too, we're in an election year....
>
> Regards,
>
> Wong
|