The Nasdaq has a lot of support around 2300-2500 and most long term traders believe that that support will hold.
Maybe but I have heard that before at higher levels. It doesn't really matter too much to me now I guess unless it rallys enough for the near term options to be worth something. Otherwise I might be better served by another large drop which would enable me to get back in with a much smaller and more conservatively invested (no margin) position early next year.
Tim,
I understand your skepticism re levels and supports. The only thing different about these supports levels is that they have a lot more past activity (the more past activity, the stronger the support). In addition if you look at a two year chart of the Naz, at these levels the huge bubble of the past year essentially has been eliminated. Its this additional data that gives me hope that these levels will hold. In addition, its hard to remember this with all the churning on the Naz but the economy is slowing, not going into depression.
FWIW my strategy over the next few months is to trade tech stocks on a very short term basis while putting longer term $$$ in aerospace, drugs and some energy. Most of these stocks were flat or up in the latest 3 months:
KOSP, SCRI, ARXX, BEAV, ISSC, RIG....in addition bought some ENE yesterday..its an energy and fiber optic networking company growing very quickly that got hurt on rumors that they would not make their quarter and dropped 30 pts. The company came out last week with a release saying that they are very comfortable with their quarter. I bought some yesterday with tight stops in place and will buy more if it stabilizes where its at right now. And finally AREM, an international software company....I sold it Wed for a large profit...its been moving really nicely until the latest Naz churning. Keep it on your screen...its a really solid company that I rode up from $8 to $40....was very sorry to sell it. I will buy more of it if it dips to the 30's and holds.
Also with KOSP...its the biotech my cousin, the dr., recommended...bought initially at $10 and will buy more on a dip to $19. The owner is the previous owner of Key Phar. which was a biotech that he sold. He does this...grows them; then sells them. People near him predict in the next couple of years this will be a $60 stock...active in cholesteral drugs. Will provide more info on this and any of the above stocks in PM upon your request.
As for you losing the most $$$ percentage wise of anyone else on the threads, I doubt it. There are a lot of people who no longer post...I am sure many of them were wiped out completely. My cousin's wife is typical of many who could not stop buying on the dips...she has had so many margin calls, they're as normal as calls from her mother..hehehehe. and almost as bad. Seriously, this is the time to be getting it together for the next round. I intend to make back the $$$ I lost and then some...a little smarter with a lot less margin.
Stay active with the threads...I believe that these are places where you find out first current trends re the market and specific stocks. Good luck.
Later,
ted |
