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Strategies & Market Trends : Ask DrBob

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To: Drbob512 who started this subject	7/1/2001 4:00:45 PM
From: JoanP	Read Replies (2) of 100058

WARNING FROM HAHNS: "The SOES and SelectNet trading systems failed again in mid afternoon. I was absolutely apalled! This is not good news. The failure was the second shut down of trading (for small investors) in the past two trading days. Big traders were able to continue to execute trades while the public was excluded. Nasdaq officials cited technical problems and blamed a Worldcom employee for conducting a diagnostic test that triggered the failure. If you just fell off the turnip truck, you can take the exchange's statement at face value. Be aware there might be something more sinister in the air. At the very least, we know that if the markets start a waterfall decline, the trading systems will likely fail (or be shut down for the small investor). I see it coming! When the markets are confronted by the next extenral shock, the exits for the investing public will be blocked. No bids means no way out. Not only will the big boys be able to get out of their long positions, they'll be able to switch around to short positions without having to compete with the public. The NYSE system failure on June 8 and the Nasdaq system failures on June 28,29 may have been dress rehearsals for something bigger. That sure sounds conspiratorial! I am sorry to sound demented and paranoid. It's simply the fact that the trading systems of the exchanges have been shutting the doors for the small investors at crucial times. Too strange to be innocent. Take appropriate protection measures. I continue to believe we are approaching a waterfall decline. The late July/early August time period would be the target. The DJIA has further to fall than the Nasdaq. Before the downside potential is realized, it would not surprise me to see short positions forced to cover. A true bear market takes everyone's money. In spite of that truism, there will be opportunities to take advantage of the approaching market clearing event by using selective shorts and a few deep out-of-the-money puts.

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