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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (18064)	7/26/1999 5:36:00 PM
From: American Spirit	Respond to of 56535

The NAZ has now dumped about 8% in a week or so. Calling bottoms is chancy but if there's a further dip in the AM I am buying again. The only way to combat a mini-crash like this is to buy when no one else will. The silver lining is that you may be able to get bargains on certain stocks you wanted but seemed too expensive. Greenspan will speak to congress again on Wednesday. After seeing what his remarks did to the markets he may want to give us a few words of encouragement. Just my guess. Really there's nothing very negative going on out there just panic profit-taking and a normal correction after a big run-up. Those who predict no recovery for months are blind to the fact that we have a bullish economy and that many of these stocks are undervalued. Tomorrow I will put in low buy orders and hope to get some bargains. If nothing else it will minimize my losses at some point in the future. Max I sympathize with your paper losses but I too have been there and learned that so long as you can buy at or near the bottom you will recoup in today's market. Listening to talking heads today I heard lots of gloom and doom but an admission that there is nothing fundamentally wrong out there. In other words, an over-reaction. My mistake this week was calling the bottom last Thursday and expecting a rally today. That one cost me. But those who claim we're going to trade sideways don't get the volotility of this market. That which goes down fast can shoot up equally fast, particularly once investors sense that the worst is over and the coast is clear. Look at three leaders and the prices they bounced off of today. LU 64, IBM 123, MSFT 87. They all finished near these bottoms. All three are a buy for me any lower than this. Others I like are USW (takeover worth 69 at 56 now), PSFT (new ad campaign a la Oracle), COMS in the 24 area, NPLS on any further dip, BEBE below 31, etc. SHould be interesting tomorrow, especially if we bounce. Anemic volumn could turn around quickly and buyers may swarm in. Also a lot of potential short-covering.