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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (40924)	11/22/2000 12:22:13 PM
From: Dave Gore	Read Replies (1) \| Respond to of 52051

SW, I think that an intraday of 2500+/- is possible in the near term, but all the bad news has got to be out. The reward/risk ratio is pretty good longer term. The only big risk is if companies did not set expectations for the current quarter well enough and we see a slew of earnings warnings. Other then that, we have lots of potential good news. - Feds should be easing by Feb. or March - We may not have a Pres, but we do have a Dec. 12th deadline - Valuations have come way down - Lots of cash on the sidelines doing what most all are doing, waiting for a catalyst to buy long. - Gridlock assured no matter who wins the Presidency which the markets like. This Market is one in which people can pick up great bargains and either sell quick (on the first snapback) or hold for the long term. As long as people buy good quality stocks, they should not get hurt too badly in the short term and should do well long term. EXDS tanked below 20 today but snapped back to 23. ( I think this is a 35-40 stock next year) BEAS tanked to 49 and snapped back to 57. (not my fave based on valuation but lots of supporters) SUNW hit 80-ish again and moved up about 3 points. (can't imagine this not hitting 100+ next year) AVT (I bought a little early at 18-7/8, but I think this is a phenominal bargain here with a PE of 8-ish...CEO was very optimistic going forward despite the stock price drop from 27+) etc. The trick for daytraders is not to buy until things just get ridiculously cheap and you see the L2 trades turn around. Tough to be a daytrader in this market. I admire those that can be successful. Especially those that can short effectively. For most, I think, it's better to selectively buy and hold, especially if basement bargains appear. What I normally do is buy stocks that I think are fundamentally cheap and will have good snapback potential (high relative strength) when the Markets turn around. If I don't get a quick snapback profit, I hold and may even buy more until the Market does turn around. If I do get a rapid snapback intraday, I may sell and take the quick profit. For FOD's (Fallout of the Day) like PRSF today, I took a quick profit at 7-1/2 because after all, this is not exactly a great fundamental stock but once in awhile these stocks are fun to buy after a panic sell-off and sell if/when you get a quick profit. Bottom line - the COMPX downside is 5% and upside is 40%+ over then next 6 months,imo, maybe even more. That's why I think buying here is fine, but it's still fun and smart to have cash and try to pick things up really really cheap.