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

To: Jill who wrote (19)	5/8/2000 7:06:00 PM
From: Jill	Respond to of 10876

Ah I see the market's down. It's a hard market to keep hold of--tiger by the tail--paradoxically shrugged off news Friday and closed up which would have boded a strong day today, but nope. On the other hand it's not really a "market" as volume was so light both days. It's really a "I'm sitting this out and waiting and seeing" market. Here's part of the Thomson close of day wrapup: Technology shares swooned after a financial publication turned up the heat on Cisco Systems' (CSCO) high market capitalization and questioning the company's valuation. The blistering remarks encouraged investors to consolidate their positions now, ahead of the upcoming economic data and FOMC meeting. The NASDAQ Composite tumbled nearly 150 points, or 3.9%, to 3,670. Blue chip stocks faded as the session progressed, pressured largely by weakness in techs. A recovery in financials and select consumer goods helped shore up the DJIA, sending the Index up 25.8 points to close at 10,603.6. The S&P 500 fell 8.4 points to 1,424.3. There was a notable lack of buying interest across the board. The heat must have kept many of the investors out of the trading room, keeping volume on the exchanges very light. If NTAP will come back below 60 I'll probably pick up some more calls. It seems the best thing to do now is cautiously trade the volatility.

To: Jill who wrote (19)	5/8/2000 9:55:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 10876

I'm of 2 minds about YHOO or EBAY as they're the walk-away-winners in the internet arena. There are two types of new economy stocks. Type A: companies with an established product or service, with growing earnings. Type B: everyone else. Type B companies are too dangerous to put or short, because they are riding on fluff, run up easily on momentum, and in today's market most of them are either already down for the count or are living in a charmed parallel universe. Type A companies are dangerous, because among them are the next microsofts. However, those leaders who have by far outrun themselves are good shorts/puts even if they will someday be winners. e.g., EBAY has a trailing p/e of 1300, and even at 50% YOY growth, would take until 2009 to reach a p/e of 30. At that time it would have a market cap of 435B dollars. That's enough to fill every garage, teepee, and igloo around the world with beanie babies. I'm going to wait until after the Fed's hike, and then re-evaluate. If we get another stong rally, I am buying leap puts on ebay, yhoo, and a few other selected tulips.