HI Barry: My ideas are not to be considered written in stone, I
look at them and often say maybe. But Why has she not tanked..
well there are a few others with very bad FA that also have
not tanked , "yet"..this was a darling "growth" stock..if you
bought her on margin you could buy more of her..the intrest
youn pay on the margin is offset with enough growth..as markets
turn down, and a fund needs money..selling one you have on
margins don't help a lot, it fact it makes things worse if your
not ahead..so they sell the stocks they didn't buy on margins
first..as they get dollar for dollar there..were here they only
get their percentage, AND if it's at a loss..their loss is
magnified, and perminate..were if they can hold it, then they
may be able to get out without a loss..( they hope)..lots of
this stock is owned on margins, I think that's why when she
falls below a certain support level, she will tank all at once.
If the market keeps going down..a critical point will be passed,
I'm not sure what it is, but when it happens she won't slide
down this time, it'l likly be one of thoes after hour, crazy, mad
mixed up nail bitting , yelling , knock down, sell offs.
I doubt they will signal us ahead of time. <G>
But I am watching as best I can big open call positions,
in Jan98 if they make a sudden big move..look out below..
Thing is they could close them, and sell off so fast that even
with my eye on them I may not have time to pull any trigers, let
alone load up with more puts, that's why I'm out in Jan98 puts,
and won't think of selling them before getting others.
You cant do anything when the selloff happens after the bell,
or before the open..how many of them I've seen this year !
You can't even trade options untill 15 min after open.
I don't think any kind of TA..signals the big sell offs,
the ones that go stright down..will that happen to AOL..
my guess is it will.
Jim
Jim
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