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Strategies & Market Trends : Join stock club--Tang Fund

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To: Arthur Tang who wrote (138)10/19/2000 7:18:23 AM
From: Arthur Tang  Read Replies (1) of 145
 
October gloom and doom is perpetrated by institutions playing daytraders. However, it created many January effect opportunities.

Doom and gloom used to set fears in the public and created crash on Wall street. Doom and Gloom sometimes is spread by lack of earnings in public stocks. Today when companies announce earnings falling short of projection, market reels back. But the number of warnings usually are few; when majority earnings reports come in, the expectation are generally met. Quarter after quarter, 8000 companies report on time; how many surprises have been reported so far? That is the question?

But is it amazing that, no one tried to scoop what the majority earnings or all the major companies will do? Instead, people play on the ignorance and spread doom and gloom. Increasing number of increased number of new investors never learned the doom and gloom. The rumors fell on deaf ears. But the rumor puts fear into institutional investors. They are experienced and they have to do tax loss selling. They have to do window dressing. They have to make growth a priority to keep cash investment coming in.

Market makers have to train their customers, mentioned above, to buy the right stocks. That used to be the procedure for maintaining a market. To have new money coming in for stock and cash pool. Do daytrading market makers care for the long term? They have to think of old age and learn the right way.

If we don't train market makers to avoid daytrading and have a more stable market, then people will all try to scalp market makers. Some of them will fail and sell out to the full service brokerages? A few already sold, many hope they will find a buyer.
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