Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Amots who wrote (76440)	5/3/2001 11:15:12 AM
From: t2	Read Replies (1) \| Respond to of 99985

Your problem is that you see only one side: The long. Im currently short some SOX stocks (AMAT, KLAC), but long storage (JNIC from 6 and just sold EMLX today from 20). I dont think the FA justify being long, but the TA sure is. Better keep some puts on the side. Amots, That is what I keep re-evaluating my position. Don't want to just keep looking at the bullish case. However, I have not seen anything that says we have a problem in the short term that justifies getting bearish at this time. However, I will be bailing out fast if something comes up. The news from the companies is still negative but there are some positives mixed in there..a change from as little as 30 days ago. The market is going to look ahead as we all know and the stocks should rebound ahead of the fundamentals. I don't necessarily agree that the Fundamentals will actually get better in reality, I just want to take advantage of the fact that investors will see it that way. That is why I have been aggressively positioned long since the bottom on the Nasdaq. As we approach the FED meeting, I suspect that traders will square their positions----which I interpret as short covering instead of selling longs. That is why I am not a willing seller at current levels...I can take it a little longer as I am playing with a lot of the house's money. <g> There is also a little fear among bulls of losing their short term profits...and that fear to me is a bullish! Put/call ratio higher than it has been last few days. At 75 as of 11 AM--slowly increasing. VIX also going up. This represents the increase in fear of losing some real nice gains lately---and not a negative for the bull case. A one morning drop is not enough to change my mind yet. BTW--Buying cheap puts is never a bad idea. It is great insurance against a bad read on the market. IMHO, the best way to protect one's holdings especially if very undiversified among different sectors--ie being in 100% tech. This is the day of trading that I will watch very carefully for any danger signs developing.