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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (47495)	2/16/2001 9:32:05 AM
From: George Schulte	Read Replies (3) \| Respond to of 57584

Rande I am also confused I thought we were waiting for some signal that the economy was not as bad as we thought I guess you are right Nothing works George Schulte

To: Rande Is who wrote (47495)	2/16/2001 11:08:14 AM
From: KevinThompson	Read Replies (1) \| Respond to of 57584

Very well said Rande. I would reiterate with lessons learned. Don't be fooled by stock prices. Repeating what you've said many times before, "Plan your trade and trade your plan". If you take a position and hold it, then selling it during a selling mania downdraft is NOT trading your plan. Stock price fluctuations can cause irrational emotion and convince you to act in conflict with the plan and do something silly. Don't sell in downdrafts, buy them; and don't buy the runaway rallies, sell into them. If your plan was ill-conceived in the first place - abort it early on - don't stick it out to compound the mistake. Best Regards, KT

To: Rande Is who wrote (47495)	2/16/2001 7:21:49 PM
From: DlphcOracl	Read Replies (2) \| Respond to of 57584

Rande Is: Excellent post. One thing I have noticed is that when tech stocks sell off on a day like this, they are still above their prices in December and early January. If short, higher lows. I think the economy is very slowly recovering and with NASDAQ at 2400 began buying partial positions in several tech stocks. I was not very bold and focused on stocks with very reasonable PEG's and franchise stocks in the best sectors. I did not buy 2nd or 3rd tier stocks and the small/mid cap stocks I want are above the levels at which I'd like to buy them. FWIW, I took positions in: TXN, ORCL, AMCC, JDSU, GX, PWER, and the QQQ's. If stocks go lower, I will NOT sell this time; rather, I will dollar-cost-average as I begin to complete the tech holdings I want. I will not overweight tech as I mistakenly did last year. However, it is foolish to completely ignore the bargains and reasonably valued stocks in the sector. TXN and ORCL with PEG's at or near 1.0 is far more reasonable than valuations in many other non-tech sectors.

To: Rande Is who wrote (47495)	2/16/2001 9:03:15 PM
From: ALTERN8	Respond to of 57584

Thank You Rande, you're the best. Your posts have been a little fewer lately but more intelligent than ever. Regards, Pierre

To: Rande Is who wrote (47495)	2/17/2001 1:26:06 PM
From: prophet_often	Read Replies (2) \| Respond to of 57584

Rande, you have repeatedly illustrated to us how the deck is stacked against the Individual Investor, and this morning I read this piece in IBD: "Heavy trading in Nortel Networks options just before the telecom-gear maker's warning on Thursday is being probed by the Chicago Board Options Exchange." Now let's see...where do you suppose this "unusual activity" was coming from? The Individual Investor who has absolutely no clue he is about to get sideswiped by an earnings warning? Or the institutions, using inside information not available to the little guy? This is really nothing new, we all know this goes on day after day. You and others here have pointed out similar instances of this over and over. But this blatant and obvious use of information not available to the investing public has me questioning the whole thesis of investing in the market for the little guy, the investing public. Apparently, the mutual funds, institutions, and hedge funds either sold their positions on Thursday before the close, or hedged their positions with options. How can an individual investor buy and hold anything, let alone hold a position overnight with any confidence? The mutual funds are OK. But since the average individual investors account is fairly small, they are generally not that diversified, and they have no clue their NT position which may be 20%, 40% or more of their portfolio is about to get cut in half. Holding a position overnight lately is worse than going to the roulette table and betting on red or black. And this type of activity which occurs day in and day out, is driving investors out of the game and into mutual funds just like the Po Boys want, or forcing them to become daytraders going flat at the end of the day. So, where does that leave us?