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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Wendisman who wrote (19546)	1/27/2000 1:14:00 PM
From: Rande Is	Read Replies (4) \| Respond to of 57584

Everyone ready for the "4th day dump", I've been discussing all week? On the first day, there was a blow off spike on tech stocks. . . and idiots using margin money to buy breakouts. Later on the first day, the floor drops out of the market forcing margin calls galore. On the second day, the tech stocks gap up then fall sharply. On the third day, the tech stocks gap up then fall sharply. On the fourth day, the tech stocks gap up then late afternoon fall very sharply. . . . . this is when brokerage houses can liquidate assets of those not covering margin calls. . . .is it any wonder there would be such a sell-off late on the 4th day? [This theory was originally inspired by musician Mark Konrad] Favorite Margined stocks down sharply from Monday's open. . . JDSU is down 40 CMRC is down 25 PLUG is down 60 ARBA is down 15 YHOO is down 30 CSCO is down 10 AOL is down 6 PPRO is down 30 INKT is down 10 CMGI is down 10 ICGE is down 35 QCOM is down 35 HGSI is down 40 NSOL is down 40 BRCM is down 40 VRSN is down 35 Most of these are at or near their lows this hour. . . I predict them to continue to sell off for the rest of the day. . . but this will mark near term bottoms, IMO. The only ones that are up from that original list are VIGN and VERT. So my buy plan is still in place . . . to buy when others are selling. Just as this group led the percentage and point losers board this week, I believe they will offer some of the biggest percentage gains over the next week. Expect cyclicals and blue chips to sell off in anticipation of rotation by major brokerages into high-flying tech stocks. Expect IBM, WMT, MCD, BAC, KO, etc. to sell off . . .freeing up big bucks to go into our high flying leaders. Rande Is