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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: Jeff Jordan who wrote (118921)	12/13/2000 3:15:07 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

Here are some options I 'adapted' from a favorite called Jubak's who writes for MSN finance: You can stay in cash on the sidelines -- if you’re already in cash. That’s certainly the low-risk stance. You don’t run the chance of losing a dollar if any rally peters out well short of Nasdaq 3,500 (or $160 in PMC-Sierra). You won’t make a cent from any short-term rally, but you will preserve your capital for a buying opportunity down the road, when it’s much easier to see that the market has truly turned. [editor's comment, that's awful you don't get to enjoy any rallies If you already own some very crushed technology stocks that you no longer want to hold for sound fundamental or technical reasons, you can sell into a short-term rally as quickly as you can, figuring to get out before the bear returns. In other words, take the gift and run. Like the first strategy, this one will reduce your risk of further losses. But it certainly limits your chance to profit further if a rally turns out to be more than a two- or three-day wonder. In fact, if the rally continues, you’re likely to wind up kicking yourself over the money you left on the table. I don’t especially like strategies that show a high probability of ending in self-abuse. In my experience, investors smarting because they sold too early have a tendency to try to fix the mistake by buying back into the market at much higher prices -- often, exactly when they should be exiting. I don't like this one either because you shouldn't have stayed in technology in the first place Editor's comment This one would work if you are OUT OF THE technology sector and get in on the long side at the whiff of a rally, sell short into therally and wait for the investors to make a run for their little profits Last, you can attempt to understand the risk and reward of individual stocks so that you can buy or hold while the “easy” money is on the table, and then sell when the likelihood of a profit-eating reversal looms. This strategy is obviously riskier, but it also offers the potential for higher reward. Applied skillfully, it should prevent an investor from chasing a stock once it has climbed into the “danger” zone. By taking some profits, too, it builds up cash that this investor can use in future buying opportunities... Editor's Comment .......there is some sense here but it doesn't utilize the opportunity for going short the market which can incapsulate a few months profit in one session. I would just like to add to go home with no positions on the long side, a small basket of puts (1/100 the risk of an actual short play).. SHORTING during the session so you can enjoy quick execution and larger positions, but never take home the short. Or if you must leave about 2-300 short for any morning gap down.