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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: rails99 who wrote (91727)	6/25/2001 9:50:40 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

rails; re: the HOMEBUILDERS... This imho; is a classic "trade the traders" opp. The way the traders play this sector is to buy them at the end of a rate hike cycle/into terrible fundamentals and to sell them (rotate out) at the end of a rate cut cycle/into great fundamentals... nothing more complex than that - whodathunkit (VBG) ? The "trade" here is to short them right here (which I have) and to add shorts/put to any & ALL further strength because as soon as the Pro Traders "smell" the end of this rate cut cycle (and the coffee's on fwiw) - they'll rotate out - just like they rotated in... this is a cyclical play & the smart money enters & exits ahead of the fundamentals . This is a classic trade the traders play here & will pay off handsomely imo. The huge corporate layoffs & cutbacks have just begin to work their way into consumer sentiment & the US consumer is simply tapped out to a historic degree... tic toc for the homebuilders - it's a GREAT high reward/low risk SHORT trade here imo. PS: I think there's going to be a tremendous Tech buying opp before year end (maybe Black October) and I think keeping lots of cash for that ultimate opp is a key strategy here... I think NAZ 1200-1500 is yet to come and I lean toward the lower end of that range. The other major concept is that KING Dollar is killing; literally killing US Corporate earnings here & another wave of layoffs is inevitable & Greenspan will be caught between a rock & a hardplace when that happens... he MUST walk the US Dollar down & do it soon... otherwise "don't cry for me Argentina" etc - will be the bumper music on CNBC soon, very soon.... gold/silver is in the sweetspot here... very, very $weet fwiw !