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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (14667)1/29/2001 7:07:06 PM
From: budweeder  Read Replies (1) of 18928
 
Hi Tom and anyone who wants to comment;

A few thoughts about the market performance from about Sept 2000 through Dec 2000........I was not surprised that there was a considerable drop in the NAZ...what I was surprised at though, was the linear nature of the drop, and the fact that there were not counter rallies that would be sharp enough, and last long enough, to trigger some AIM sales...for myself I had only one small sale in the 2X fund during that time (maybe lucky to get that one).

Granted that this was a sharper than usual decline....even so, (speaking of the NDX) one would expect a decline of say 25%, to be followed by a 50% retracement before the next leg down....that would have been enough retracement to sell some shares purchased at lower prices at LIFO gains of perhaps 20%.

Since we don't know whether a decline will be the precipitous drop or the drop-rally-drop sequence in advance....is there any particular way that an AIMer could have done a better job once the drop got to say, 20%...(40% on the 2X funds)..........should one at that point change SAFE to try to encourage sells and discourage buys??

Tom, I know you have addressed this to some extent, but I believe I am asking a slightly different question...i.e., once a level of change has occurred, what defensive moves to the AIM settings make sense?

Thanks and Regards, Bud
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