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To: avanti77 who wrote (7631)	12/17/2000 10:31:58 AM
From: mishedlo	Respond to of 13572

<<Bottom line... it'll take some time for all this to work it's way through the markets. The big money on the short side has been made. Sure, there will be places to make more $ by shorting, and I may occasionally make such a play. There's also places to make money going long. I always keep in mind that the market is a forward looking (and highly emotional) mechanism, and once those rate cuts start coming, you'll need to adjust your thinking. The easy momentum days are done for a long while. I was surprised that they lasted so long to begin with. re: Are financials headed down or not? Why? Good point. If the fed lowers, kneejerk reaction will be up, so therefore not the best time to short - even if they are in trouble. You might be interested in this article. contraryinvestor.com Anyway Mike, I don't pretend to know how the market will act from here, I'm just taking it day by day. It's the holiday season, and there are other things to think about and be grateful for, and that's the main reason I asked you to lighten up. Fortunes have been made and lost, and will be made again. Family, friends, good health are the real things in life to be grateful for... Donna>> Thanks Donna, and that is why I am cautious about loading up the truck with PUTs. That is also why, I am looking at financials because they are still at the top. This might be the last sector to get hit hard. The easy money in the dot-bombs has indeed been made. However, I have a friend that thinks just the opposite. He likes shorting $3 stocks. No competition. Watch it fall a point and you have a quick 33% gain. I will not play this game as I think the risk is too great. He thinks it is easy money with no competition. I do however think there is still some easy money in the Fiber optical sectors with CIEN BRCD JNPR etc. My targets on are about $20, $50, and $50. Why not? RIMM and HGSI are at totally absurd levels. Perhaps it looks too easy. Maybe it is. Real pessimism is called for IMHO, but CAUTIOUS PESSIMISM in ACTION is the key! Right now, I did lighten up my PUTs for a year end bounce. On Financials I am currently flat after that 400 NYSE drop. One possible hedge against a rate cut is short terms calls with long term puts. It is just a matter of time before this high rider segment gets knocked down. Thanks.