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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (25665)	12/18/2000 3:19:46 AM
From: mtnlady	Respond to of 65232

"Still, Schwab clients averaged 194,000 commission-producing trades each day in November, down just 4.4 percent from 230,000 made during the previous month." Their trades kept up in November because they were getting out of everything they bought in October expecting the 'big rally'. I'll guarantee you that as clients assets shrink more there will be fewer and fewer trades. Let's face it, when you have 'millions' to invest you do more trading than when you have 'thousands' to invest. And not even 'hundreds of thousands'. Plus you get dmn gun shy. Everything you do seems to blow up in your face. Cash in a money market looks really attractive. If they trade their either buying and selling in the same day to go back in cash by market close or they find some long term entry point they like and they are going to sit there until this dmn thing turns around. I would expect the next group of institutions to really take it in the shorts (if they haven't already) is the stock brokerage trading houses (Schwab, DLJ, Etrade) etc.. shall we start shorting them now? The other bet is that they start consolidating like crazy. Our 'cheap' commission fees won't be so cheap by the time this thing is over :( (another thing that will keep trading down and encourage long term buy and hold strategy again). What will (has) really take it in the shorts is the options market. LEAPS a year or two out might starting really* cheap over the next few months. Maybe some 03's might be a good bet sometime over this next quarter. Then ride the whole mess out.