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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Jerry Olson who wrote (1453)3/21/1997 10:13:00 PM
From: Robert Graham   of 14162
 
Actually I think the drop in the Dow is a positive event. This is an intellectual decision though. Experiencing it it quite another thing. I am expecting like you that this to be a short term occurance. Now the markets have will have an opportunity to gain further ground in a more stable and sustainable appreciation, for instance there being a much more broader base of stocks particupating in the uptrend.

However, I am making one very significant assumption here. I am assuming that the investor is ready to "race a new horse" instead of the same one over and over again. I guess it is normal for people to go back to the same investments to receive their anticipated payoffs. However, unlike rats in a maze, the investor will continue going back to the same spot well after the payoff has stopped arriving for them there. This is what I am concerned with now. We shall see.

So lets hope this is the time for the broader based indices, and the overlooked and undervalued stocks.

Bob Graham
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