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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: xcr600 who wrote (28534)	9/28/2000 9:36:20 AM
From: Logain Ablar	Respond to of 68077

wash sale tax rules apply to funds but taxes is not a primary focus on fund managers. Its a secondary item in their analysis. T

To: xcr600 who wrote (28534)	9/28/2000 9:38:54 AM
From: Return to Sender	Read Replies (3) \| Respond to of 68077

Thursday morning: There are several keys to this awful market: technologyinvestor.com 1. We're two days before the end of the quarter. It's clear that much of the continuing weakness is tax and "window-dressing" related. Window dressing means that institutions are getting rid of stock they own that will make them look embarrassed if publicly revealed -- which they need to do at the end of each quarter. These pressues will ease. 2. It could turn on a dime at any moment. It has in the past and it will in the future. September is traditionally the worst month and the fourth quarter (the one we start on Monday) is traditionally the best quarter. Last year and most recent years were no different. 3. You have got to be very very careful about which stocks you're in. Sanford Bernstein, a brokerage firm, came out today with its latest telecom report, saying that growth was declerating and carriers planned to buy less equipment from equipment and optical makers, including the usual suspects -- Nortel, Lucent, Cisco, Ciena, etc. The earlier warning from Priceline.com re-interates staying away from dot.bombs -- stocks we've never recommended. Ditto for staying away from large telecom carriers and CLECs. I've started a list of "Stocks/Industries We Don't Like." I hate doing this since that's not the way I think. But I do realize that, in the magazine, we have steadfastly stayed away from certain industries, choosing not to cover them. It's time to detail our reasoning more. 4. You must have your stop loss orders in place. They will protect your gains. But, more importantly, they will kick you out of stocks as they start tumbling. In this market, it is rare for a stock that starts tumbling (on a bad report) to not continue tumbling. Philip Zera, our markets editor, reported to me last on our portfolios in September: "We've been stopped out of 56 of our 72 stocks (six portfolios each of 12 stocks). We now hold over $580,000 in cash. The difference between the active and passive versions of our portfolios has widened again to over $68,000." In short, stop losses orders are protecting us. 5. The IPOs that come tend to be strong. Nobody in their right mind is bringing a weak IPO out at present. So you're seeing strength here. Beg a few shares out of your broker. I'm looking very forward to Elastic Networks (ELAS), which should do very well. I met with a telecom carrier CEO last night who's installing Elastic's equipment and loves it and them. 6. Lastest DDP numbers are great. The second quarter revisions which came out earlier today brought the GDP numbers up to 5.6%, from 5.3%. That means our economy is performing even more strongly. technologyinvestor.com