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

To: Poet who wrote (869)	5/29/2000 8:27:00 AM
From: Poet	Read Replies (1) \| Respond to of 10876

Sage words from Donald Sew on the Stock Attack thread, regardinggeneral interim market direction and whether LTB&H is a wise strategy at this point: "For me personally, I adapt my trading style to the environment. Let me explain - there are alot of BUY and HOLDERs out there who would like to know if this is near THE BOTTOM so they can go long with a LONG-TERM HOLD mentality. Im not saying that the market WILL go lower, but we shouldnt ignore the fact that the overall market is downtrending for the interim. In other words it is uncertain that this is the bottom, so I believe that for the time being the best strategy is to trade in both directions not to use the BUY & HOLD strategy yet. Also, I wouldnt use the BUY & HOLD strategy until I was confident that the market was in some sort of a UPTREND, which is not the case at this specific moment. Im not saying that the market cant reverse to the upside, just that right now it is still downtrending and a BUY & HOLD strategy does not best suit a downtrending market. So my position is that one should either adapt their trading/investment style to best suit the current environment or sit on the sidelines, rather than predict/hope/wish that the market will move in the direction that would benefit their trading/investment style. I keep on hearing from analysts over and over that this is the time to buy, if one has a BUY & HOLD strategy. They could be right, but have they taken into consideration that a TRUE BEAR MARKET may be starting. IF this is a TRUE BEAR MARKET one could still see significant downside and be holding for a long-long time, in terms of year. Of course one could simply ignore the possibility that a TRUE BEAR MARKET could occur, but I dont think that would be the wisest. Again, I am not saying that a TRUE BEAR MARKET will occur, but I wont ignore that possibility as I would not ignore the possibility that this is the bottom and that the market could reverse upwards strongly and even, though less likely, set new highs. In light of my uncertainty in the market I ADAPT my style to fit the environment, rather than predict/hope that the market will go the way I want it to." Happy Memorial Day, everyone.