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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (5464)	2/27/2001 11:24:16 PM
From: WaveSeeker	Read Replies (1) \| Respond to of 6445

When you say that "Hedge Funds are a major culprit of volatility", is that a bad thing? As a trader, my biggest fear is lack of it. Many investors and/or traders want to attribute the market's behavior to conspiratorial forces such as market makers taking stock up and down; the media inciting market panics; and day traders spraying ECNs with rapid-fire orders. But take one example of what used to work and what doesn't now: buying the dips. Did buying the dips make sense when earnings growth was accelerating? Does it make sense now with sequentially declining revenues? Seems to me the PEG ratios have always made sense, whether E was exponentially increasing or whether it was approaching 0. So now we have the incredible shrinking denominator: P got a peek under the covers of E and is now getting market-capped. I guess my point is that the market is actually more sane than anyone could ever imagine - as for the participants, they are being carried away in white coats every day. By the way, how did you manage to respond to this before I finished writing it? Jurassic Park: "Clever Girl" Regards, WS