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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (9024)	6/29/2002 4:50:56 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

Doug, impressive gains but that doesn't do anybody any good now and may actually reinforce the belief that what goes up must come down. Maybe way down if gold manipulation continues. Unfortunately if people only react to manipulation and not speak their mind, nothing will change. The Power Players will only get richer at the expense of the small guy. The only small guys that will make money are the ones who get on the correct side of the upcoming major move ASAP. If you get there too late and the move turns out to be a minor move or fakeout breakout or breakdown (which it does 98% of the time) then you're screwed anyway. Look at Gold. It teased Gold bulls for 20 years before a major rally occurred. When it did ramp and kept going, most still didn't believe it was a major move and got in late and in fact probably bought HGMCY at $15+, maybe $18-19. For 20 years there were teaser moves. Look at the SOX. The underlying chip business at the non-computer companies has been improving dramatically for 5 months. Yet, the SOX reached it's lowest level just a couple weeks ago with the industry reporting the highest booking and billings numbers in over a year! We already spoke of ESST which dropped from $20 to $12+ within 2 weeks after it earnings report where it beat consensus by 10 cents and is way undervalued compared to its peers. Manipulative smear campaigns did the trick in this FEAR-laden Market. The daytraders ran for the exits, not wanting to be the last one holding the last share of $12 ESST. They only sold because the guy ahead of them did. Ditto KG, AGM, ACF, SGR, ITRI and a bunch of others that have now all risen 20% or more since the shorts covered. *** Manipulation hurts all but the Power Players and tiny percentage of super savvy or super lucky small traders on the right side of the equation of a major move. Unfortunately 98% of all moves are minor. The May 8th-type moves where Power Players made 1200% on CSCO and QLGC options overnight are few and far between. Most traders jump into a moving stock, only to find the stock going the opposite way as soon as they do. The minor moves are a killer for the small guy, yet for the Power Players that start the minor move, they do fine. Their $million buy of a stock at $20.25 and sell at $20.50 is fine with them. They can live off small moves just fine and thrive off the occassional major moves when they can swing it.