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Strategies & Market Trends : MARGIN - Do's and Don'ts -- Ignore unavailable to you. Want to Upgrade?

To: John F. who wrote (26)	8/8/1999 5:03:00 PM
From: Dale Baker	Read Replies (1) \| Respond to of 35

I only shorted QQQ once because E*Trade can't get shares any more. I started shorting XLK instead. The top components overlap a lot and you can get XLK whenever you want. The pullback from July highs indicates the difficulty of timing a market like this. We hit new highs then dove off a cliff. What are the signals that it's a vicious pullback and not a normal correction? That's why I take short-term positions and jump out when I'm not sure (which is most of the time). If we see a solid rebound I may go long QQQ just for the volatility. But XLK is roughly the same - a 1-point move in XLK at 40 will parallel a 3-point move in QQQ at 110 or better.