. . . Some near-term thoughts. . . .
Keep your composure. Do not trade out of emotion. . .good or bad. That is always a trap.
Consider the larger picture. . . and do not lose sight of it.
Careful you don't get stuck in stocks that aren't taking part in todays move. If this didn't move them, I don't know what will.
I did not like the way that this morning the TICK was acting so eratic just ahead of the announcement. . . .as though someone knew something. . . could there be a leak at the FED? Hello, SEC? Did you notice this?
Today was broad. . . but consider the number of short shares out there. . . so much was short-covering. No guarantees that shorts won't find reason to fight momentum. . . .hard as it sounds to pull off. . .I've always been amazed at the lengths short-sellers will go to force the markets back in their favor. . . .Let's see. . .some rumors of Greenspan being terminated in some way would be the most obvious. . .or a resignation. . .
The QQQ is up 17%. . compared to the Nasdaq up 12%. . .indicating that the best and biggest tech stocks are still the place to be. The rest is more speculative.
3-to-1 A/D line is extremely good and encouraging that this is a real rally and not just a knee-jerk on exciting news. This could actually have tipped the scales in favor of the bulls. Notice the immature short-seller disappears into the woodwork, when the market rages.
Be careful with allocation. Look over your stock port carefully and be sure that it is properly balanced between growth, value, large, small, safe and speculative.
There is a good chance that the recession may be eclipsed by this rate cut. . . meaning that 2001's outlook may be brighter than first expected.
Be prepared to profit. In 1998, we were willing to give up a certain amount of profits. . .knowing that there were huge gains around the next corner. In 2001, we must hold on to our profits with both hands. . .and take them when we get them.
Plan your trade and trade your plan. That will never change.
Mr Greenstocks has given the green light that we discussed at length. . .Remember how many times I said that we could not have a reAL rALly with out AL"?
CEO's who were tapering down their expansion for 2001, may be going back to their original plans.
If you lost your brokerage, quote server or other important site today when you needed it most. . . .it might be worth taking time out to make the necessary changes. . . .I still believe we'll see more BURST RALLIES. Be prepared. Just be aware that between these bursts, there will probably be steady bad news and declines. . . so be careful what you are holding when.
Don't put all your eggs in one basket. I shouldn't have to say this anymore, but I still get surprised by some of the email I get.
I am sticking to my long-termers like GLW, LMG.a, WCOM, YHOO, LBRT, MCOM, GILTF, LPTH, EBAY, ATHM, CPQ, etc. . . .did I say LMG.a? . . . .because to me they seem safer than some of the higher-fliers. . . .yet I am playing higher fliers while there is sufficient momentum. . . but am mostly interested in buying them on days when they get pounded.
Is it not perfectly amazing that GE, Cisco and other blue chip types were slammed so beautifully yesterday? If you knew that today would see a rate cut, wouldn't you want as much of those types as you could get at the lowest possible prices? I just can't get over that.
History was made last Friday with the Nasdaq's biggest yearly loss.
History was made yesterday when the Nasdaq broke below prices of 1999. . .with most stocks at prices from 1998. . .erasing the entire bubble. . .as though it never happened.
History was made today when the Nasdaq made its biggest single day gain every. . . and the first time the Fed started a decline with a full half point cut.
OK, what's next?
Rande Is
PS> Up 23.3% on the day. . .easily the single best overall port gain. |
