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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (7341)	5/4/2000 2:59:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

jeffry....let me put it in the words of investor business daily..."the big picture" "but with volume increasing 3%, the session counted as yet another distribution day. such signs of professional selling have plagued the nasdaq the past eight weeks. whenever an index fall in heavier volume than the day before, you can assume mutual funds and other big investors are heading for the exits. despite the public's fascination with day trading and online investing, large institutions still rule which way the market moves" put aside all the oft mention conspiracy theories of the mm's and houses....they do not move with strokes of genius..but when they move, the magnitude of the move creates a directional momentum and all else follows. the lower base is forming, a period of distribution necessary in order for stocks to move up. it's only when the upside volume is greater then the selling that indicates the beginning of the accumulation phase. you have had two intermediary selling climaxes, one around 3625...rebounding to about 4400, only to selloff on volume to around 3200...bounce to 3900 or so, and slipping back... subscribe to ibd...look at the "general market & sector" page on a daily basis....five minutes every morning for a recap and peak into the future...includes all the "psychological market indicators"....which still are at a bullish bias.... "hesitant to do anything"....you have my vote, i concur... just watch the posts of the psuedo day traders...they are so afflicted that they feel they must always do something....the only thing they will do is reduce their net worth... take profits when you can...keep core holdings....don't leverage margin or capacity in any issues with parabolic gains....compare a msft with a qcom...i would leverage a msft as it is a stock that continues to base and move up...and even with the government ripping it apart, it does not give up much....qcom ran so fast that the uninitiated got caught up in the hype frenzy of a bunch of chuckle head posters....thought it would go forever...never would sell, buy more at any price...on and on and on... you must be prudent whether you buy or sell options, they are finite....take profits, disregard opportunity....why? because you can't spend it!