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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (9777)	12/15/1999 8:52:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 63513

The indicators give you part of the equation. I've been reading that people have been saying "sell your stock..." with the indicators turning and that is in no way what the indicators are suggesting. When the indicators turn it gives you an idea of market risk. Right now all of your stocks are swimming up stream. They are going to have a tough time of it. Some stocks will manage the stream fine and will continue up but maybe a little slower than they had before and others will fail miserably. With the indicators turning it is like a kick in the butt to watch your stocks carefully. Looking at CMGI chart I see no reason to sell it at all. Watch it yes but everything looks fine. It pulled back which is normal for this market condition. It would have been silly to sell it. Now, if it breaks a double bottom watch it carefully. It may only be a shakeout happening. I find people aren't prepared for the market swings that are normal in today's market. A 100 point move is a normal day no matter what direction it goes but people still write about a 100 point move as if God himself manufactured the event. We have a lot of money and a lot of volatility coming into the market and we need to be able to withstand the moves without over assuming the situation. The indicators are all still at a lower level. If the reversal down happened when they were above the 70% level then yes, be extra cautious but a reversal while at 40%.... That is a pullback. A normal market pullback. Some stocks will trip up and you will know that by looking at the trend chart. Some stocks will be boring for a while and you'll know that by the trend chart. Some stocks will continue building castles in the sky and.... You guessed it.... You'll know it by th trend chart. With internuts you must always look at the larger box sizes and sometimes trade by the larger box sizes. Stocks may give sell signals but if it is the first in a strong uptrend it could be a shakeout even in a weak market. PnF is about combining information which is why it is called an art not a science. You will probably see with this current weakness stocks that haven't been doing well will really crap out and those that have been doing well will just slow down. This is why RS columns are inportant. RS in O's right now could be real scary. Jannie bo bannie

To: Rich1 who wrote (9777)	12/15/1999 10:52:00 PM
From: Jorj X Mckie	Respond to of 63513

Like I said in the earlier message, I am primarily bullish, this would preclude selling good positions. However, I did hedge most of my high flyers with OTM puts. I am known on this thread for not necessarily waiting for all of the indicators to turn before acting, this should affect the way you evaluate my comments. I found that the 5pt charts are mandatory for the nuts, moreover, I believe that it is necessary to become familiar with the movement of the particular internet stocks outside of P&F. I like CMGI, I like (and own QCOM), the P&F indicators turning negative has me concerned for the short term. That is why I hedged my positions. Paying tribute to the bear gods with some puts is a small price for me to pay after the tremendous returns that these stocks have afforded. If you are a buy and hold type, buying puts (or selling calls) might not be necessary for you, but since most of my positions are no more than a couple of months, it is a good idea for me. JXM