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

To: Sultan who wrote (48679)	4/30/2000 2:03:00 AM
From: Michael Watkins	Respond to of 99985

Sultan - I think what you say makes some sense... but geez I would think they'd know how to hedge a losing tech position to be net ok exclusive of the cost/margin of the hedge. They just need to lean on the sell button on the NDX futures! Done that a few times myself this past month, but doubt you felt the impact of my mighty capital allocation LOL! Seriously tho -- I thought I had read that they bought the dip in Feb; if that's the case, the dip in April would not have brought them down that much at all. Well, depending on which dip I guess. If the bought the rise from Jan lows on the first day of trading in Feb, they'd have been down but barely so. If they bought the pause later in Feb, they'd have been down 20% from entry to low of the 'correction'. At any rate, my real point, and it may be lunacy or not, is that they deemed the tech market fit to buy thinking it had legs to run still. Late in the game according to interviews, but room to run. Events changed things. They believe they made a mistake and took steps to protect themselves. Based on the published commentary/interviews, it seems to me that the net is they currently believe that the tech market does not have legs to run, ergo it has room to fall. I may be simplifying things and admitedly its pure speculation. I feel free to specualate because I'm a shameless chartist when it comes to commiting my money... :) PS, perhaps he's trying to talk down the market in part of a bigger play. One never knows...