I must say. As a professional who takes big risks, I WOULD NEVER PUT 100% OF A 401K INTO NITE!!!!
I think the Internet bubble is burst and it will get ugly. When it does AMTD, EGRP, NDB, SCHWAB... will get hurt. Investing is not trading. When the tide turns, trading will be as unprofitable as it was profitable while all these stocks rocketed 20 fold over the last year. Then selling will set in.
I think the group is rolling over after a 50% retracement from its
two month decline. To test the hypothesis I shorted 5 yhoo July 180 calls in front of the earnings when the stock was at 168. I just figured there was so much optimism not much could push it meaningfully move it up. After "blowout" earnings, the stock is sinking. The next day I bought 50 August 40 puts on nite, the following day(Friday) I bought 100 puts on AMTD the Aug 25s.
Now I am just making small bets to hedge positions in NOK, EMC, and MSFT (real internet companies), but this market looks like it is putting in a top and after these earnings are released, I think things could get ugly as the internet stock sink and Y2K fears start
becoming a source of uncertainty for the millions like yourself who have become internet empowered investment novices who may not have had meaningful commitments to past manias and experienced personally or had clients who watched portfolios lose 80% or more.
Trust me. People talk about their good tades not their bad ones. They typically just want people to think they are smart, rich or future moneymakers so babes will do them.
Have you noticed how the boards have gotten quieter? The tide has changed, and my advice is you cut your position in half and don't let a gain turn into a loss. Your arm maybe caught in the proverbial
meat grinder, and I don't want to see anyone get drawn in to their shoulder or worse.
Cheers, Typhoon |
