Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (15564)	9/25/1998 6:13:00 PM
From: Jenna	Read Replies (4) of 120523

SELL into weakness and BUY at strength.. Ridiculous, right? A reputable stock and option selection thread this morning called for purchasing puts and selling calls and stocks at the open because of the 'world wide selloff'... Well I was not prepared for anything that drastic and when I looked the YHOO,AMZN puts/calls it took me no longer that 60-90 seconds to notice they gapped lower by about 2-3 points and were rushing to fill and even go into positive territory. I quickly changed direction and prepared to do likewise with CMGI and the CCI, BAC calls. It is important not to JUMP TO CONCLUSIONS in these markets. Selling 'CALLS' at the open (when the market gapped down) and buying puts at as they GAPPED UP would would have been the worst possible move. You would have sold you calls into a selloff (selling low) and bought your puts at a HIGH (buying high).... You must always look for signals of reversals even if the S&P futures are down. These are very volatile times and you should play contrarian more often than not.. At least wait for the morning trend to reverse before making any major commitments.

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