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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (24054)	8/28/1999 10:05:00 AM
From: Lee Lichterman III	Read Replies (3) \| Respond to of 99985

Well personally I am still on the fence. I am still in the same camp I was months ago that this is a stock picker's market. The indexes reversed right on my middle tines but they did manage to get through the bearish forks and seem to be following my bullish forks very well....So Far <g> Of course most of this action was before AG spoke etc so I am still expecting a higher low and I am actually leaning toward us not getting as low as my bottom forks. I can't put my finger on it and it may be a bullish bias that I have but after running through all my web charts ( I haven't gone through all my other ones yet) I still have a feeling we could reverse early next week and head back up. My only bearish concerns are South America, the US Dollar, the Bond and other fundamentals. From the technical side all is A-OK so far with most of the charts except for telecom and banks. WCOM put in a bearish engulfing two days ago and then T did the same yesterday. The techs and many other stocks are hanging in for the most part so far during this recent decline and the NASDAQ held most of the weekly gains. I will need more time to sort through things and I promised my kids I would take them to the fair today and I am going to a concert tomorrow so I won't have much time. Thought the thread might like this little tidbit I found this morning also. It is a snioppet of a pretty good article but this part of it really got me........ Recently, an advertisement caught our eye from Investor?s Business Daily: "90% Protection ? The 90% Stock Loan." The ad comes from First Security Capital, out of San Francisco. Now, we have no idea if they are doing a lot of business, but we would be shocked if employees, particularly from Silicon Valley, are not lined up in droves to take advantage of this deal. Here is what they offer: "First Security Capital?s 90% Stock Loan ? the proprietary financial instrument that provides liquidity without triggering a taxable event, protection from a market downturn, and unlimited upside potential." And continuing from their website: "With capital gains in your portfolio or vested options, you would be subject to capital gains taxes should you decide to sell ? taxes that would be especially significant if you have shares with a low relative cost basis, or have employee stock options with a low relative exercise price. Loans, however, are not taxable events. So in many cases you could actually net more cash by borrowing 90% of the current value of your stocks with our 90% Stock Loan than if you were to sell. And because you still own your stocks, you retain the ability to realize future growth in the value of your portfolio. The loan is also non-recourse, so you have no personal liability for your loan, and your maximum downside is capped at 10% for your entire loan term. Ultimately the 90% Stock Loan can help you net more cash, get long-term downside protection, and keep your stocks. " "Diversify into real estate or other ventures by leveraging your stock portfolio ? without the risk of a margin call if your stock declines in value. You can access standard margin loans when it comes to leveraging your stock portfolio, but these leave you exposed to downside risk if your holdings drop in value. Our 90% Stock Loan is non-callable and it has no margin maintenance requirements, so it enables you to leverage 90% of the value of your stock portfolio without the risk of a cash squeeze from a margin call. And unlike margin loans, with the 90% Stock Loan you are not required to make any interest payments until the end of your loan term. Than means you get 90% of the current value of your stock portfolio in cash and you have long-term downside protection ? without negative cash flow. So you can leverage your stock portfolio and diversify into real estate and other ventures without worrying about making monthly payments or meeting margin calls." "With the 90% Stock Loan you receive 90% of the current value of your portfolio in cash, and still keep your stocks. Even if your stocks go down significantly in value over the course of your loan term, you have no obligation to repay either the original loan or the accrued interest at maturity ? yet you continue to realize future growth in the value of your portfolio if it keeps going up." First Security Capital has other products as well, including the "Option Conversion Loan", the "MicroCap Loan", the "ESOP Qualified Asset Loan," and the "Foreign Stock Loan." Our favorite, however, has to be the "Restricted Stock Loan" that allows individuals to "monetize equity in securities that are subject to restrictions, lock-ups, or legends with various Restricted Stock Loan programs." prudentbear.com Good Luck, Lee