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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?


To: Jenna who wrote (116984)11/19/2000 11:41:35 PM
From: Jenna  Read Replies (1) | Respond to of 120523
 
Surviving a Bear Market.... Clever approach

...don't let small point drops lull you into a sense of false security, either. Institutions that own millions of shares can't dump stock all at once. They sell off gradually. Market collapses often start slow, then quickly turn for the worse as the big boys run for the exit.

Trying to guess market bottoms can be just as dangerous. Plenty of pundits called a bottom on Oct. 18, when the Nasdaq fell sharply, then reversed on one of the heaviest volume days of the year. Two false rallies later, the index found a new bottom, closing below 3000 for the first time in more than a year.

Let the market tell you when it's bottomed out. Look for a major index to show a big jump in higher volume, usually four to seven days into an attempted rally.

Follow Your Sell Rules
Develop sell rules for individual stocks. Cutting losses is vital. You also need to know when to take profits.

.......Don't get greedy with your gains. If your rising stock starts running up faster than ever before, it may be headed for a climax top. If it's marking new highs on light volume, it may soon roll over. Lock in gains before you get burned.

Should you get out of the market entirely? Not necessarily. Defensive issues like food, utilities and medical stocks have held up well despite the market's jitters.

But take care. No stock is impervious to attack. Follow your buy rules. Target companies with strong fundamentals. Grab stocks that are busting out of well-formed bases. If your stock flashes a sell sign, be ready to eject.

excerpts courtesy of "Investor's Corner".. 11/20 Investor's Business Daily