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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (37285)	3/17/2001 8:18:32 PM
From: Susan G	Read Replies (2) \| Respond to of 50167

if all these people sell and take the money home every night we will have no markets as only sell programmes will hit the market, in such a case no low is low enough This is exactly how I've felt lately, how low can they go, and it really worries me. Especially on those days of vicious, relentless selling, slicing through support without a buyer in sight. And always when I see traders celebrating the destruction of long term support in a great company's stock! I'm not sure any of the hedge funds with massive short positions, and the huge brokerages shorting the same stocks the have coverage on, that they have taken a moment to think about how they too may be taking a part in the destruction of our economy. I think that a big part of the reason why the nasdaq has dropped relentlessly, sell off after sell off is that people are barely even swing trading, constantly scalping and selling at the close each night. The trading more is not such a worry, as it is a way to earn a living with your skill and knowledge with the freedom of being your own boss, the dream of many out there. And there wouldn't be a market without it. It's the massive shorting and refusing to hold positions going on that I think is dangerous to our markets. It's destroying stocks that might be trying to recover and form healthy bases. Some of these stocks will now takes months or years to recover after being cut in half because they missed by a penny. Or because they had parabolic moves to begin with. It used to be that stocks consolidated when there were fewer buyers. Now they get crushed at any sign of weakness, as we have been trained what to look for and are all seeing the same signals at the same time. And the fact the the brokerages are now daytrading constantly is not helping the volatility. I myself have shorted a bit lately, out of necessity, as my long at heart style swing and daytrading for a living has proved to be extremely hazardous to my trading capital and consistant income level <g> It's tough to fight the trend as well as other traders. I don't like it, it bothers me and it destroys my optimism. At the same time, I'm swing trading my retirement accounts carefully because I refuse to leave them in cash, they have always held stocks. I agree with you about the importance of holding core positions. I would prefer not to trade them at all, but have been forced to to trade them constantly to preserve them and help them grow. So in these accounts I know what "investors" are feeling. It's tough because who wants to be left holding the bag on these stocks while others who trade more actively take their profits and run... Until the tide of sentiment changes, most of the stocks out there don't have a chance for a healthy recovery. And that won't happen until companies start "beating" these reduced estimates and raising guidance for the future. And a little optimism might help! But I think it's a long way off. Susan