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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Scrumpy who wrote (93584)	4/16/2000 5:39:00 PM
From: Andrew G.	Read Replies (2) \| Respond to of 120523

Scrumpy & OJ: Traders will always find a trade in any market. No argument there. The point I'm making is that there is a finite amount of money in reserves for 'investors' to work with. Several trillion is now gone. If approximately $1 trillion is left in cash of mutual funds (roughly equal to what was lost Friday alone !), then, as I quoted in my last post, it is not going to be enough to restore even Friday's losses anytime soon. Traders can still make plenty of money, and I don't doubt you are savvy enough to do it well. As far as getting burnt, by the market, I don't like to burn through any cash dipping in and out of a market that is working it's way down. Shorting is now too risky too because of potentially sharp intraday or mult-day bounces or 'false rally'. My only interest is going long on a day trade or short term news driven plays. That's it. People and businesses will need to gradually earn more money to pump back into the market and to lift it back up. This will not happen in a week or two; especially not with a reversal of sentiment. The reserves are just not there to do it any quicker. That's how I see it. It may be my opinion, but the data may be there to prove it. I just don't have the statistics at my disposal. There are others here on SI who apparently share this opinion. Message 13432674 "in many cases, billions has in fact gone up in smoke. Not all of it was transferred into someone elses' pocket." siliconinvestor.com Calling all margins. . . The second time was when margin debt figures came out and, lo and behold, margin debt was up again sequentially in March. It was 5 percent higher, reaching a record $279 billion. So that ties in with the stories that we have heard about how margin calls were met with money last week and in fact even more buying occurred. As I pointed out yesterday, this only makes the situation potentially worse. "It's important to remember that the U.S. stock market, at a recent high of $18 trillion compared to $30 trillion in world GDP, was not only the U.S. economy but also the world economy. So its unwinding will have severe and rapid economic consequences, in my opinion."