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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: KymarFye who wrote (66061)	1/5/2001 10:33:49 PM
From: Wayners	Respond to of 99985

Its too bad the average joe doesn't ever learn how to short stocks or anything about options for hedging and as a result goes broke accumulating stocks and fighting the downtrend, that are worth less than junk bonds because they can't do anything else.

To: KymarFye who wrote (66061)	1/6/2001 2:50:42 PM
From: KevinMark	Read Replies (1) \| Respond to of 99985

>>>"Please understand - it's not always like this!" <<< A 5% move in the Nasdaq years ago was considered a market melt-up or down, and a 10% correction, especially in one day warranted a crash. It's seems as though we are getting a min of one to two of these sessions per week. There are two days that are forever burned into my synapses. 1. Tuesday, April 4th, 2000. Nasdaq down 550 points intraday and closed down only 70 points. 2. Wednesday, January 3rd, 2001. A Nasdaq 14% nuclear vaporizing melt-up! I'm not sure if new investors understand the magnitude of these movements. The Nasdaq gaining 14% in one day is just mind boggling, especially when investors would be happy if retirement plans returned that kind of percentage year over year. That happened in ONE DAY! Still shaking my head. >>>It's not always like this<<< I believe the volatility is here to stay when the same $$$'s in the market are simply being pulled out of one sector and into another. Therefore, it's the institutional hedge fund traders that are the reason for all this volatility, and there is nothing the SEC, nor the NASD (criminals) can do about that. The failure of so many dot.bombs, due from the worthless IPO toilet paper dumped on the markets by the investment branches of the brokerage firms, have created less liquidity for themselves, and more volatility, because the same pool of money is traded amongst fewer stocks. Therefore, the volatility will only get worse, as the toilet paper is flushed down the toilet by demotion to the bulletin board casino. Let us not forget the small retail investor too. Who, can simply hook up a $400 computer, open a $500 discount broker account, and be trading in a day. In other words, the casino will always be open, and until laws are mandated, where it penalizes the investor from scalping, volatility will always remain. I'm sure even the brokerage houses prefer this volatility, because they can manipulate the media, markets, ect. and trade the ups and downs. But, a market moving sideways is more difficult to trade or to manipulate, one way or the other. Long live VOLATILITY! Regards, KM