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 : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (1925)	12/6/1997 4:51:00 AM
From: TechnoWiz	Respond to of 4969

Hi Don: My sentiments seem to exactly equal yours. In spite of Oct '97, the market is doing a sterling job of re-generating complacency and becoming overbought in the process. As always, it will do it's utmost to pull in as many new players as it can and lure them back into the buy dips mode. Then I suspect that it will all begin to unravel very suddenly in a manner similar to that of Oct. This time around though, I suspect the market will not find a real bottom, until all those who have been utterly brainwashed into a buy and hold mentality will be blocking theirs and screaming: "I never want to hear those words again"... BTW was I correct in my assumption of your applcation of your 70-20-10 rule. tks and regards Wiz

To: Don Green who wrote (1925)	12/6/1997 9:04:00 AM
From: spinynorman1323	Read Replies (1) \| Respond to of 4969

Don and all, Barron's ran a story this week titled "Who's a Trader? You Maybe for Mark-to-Market Reporting", that discusses trader status and an obscure provision of the 97 Taxpayer Relief Act. An excerpt showing the gist of the article... "....From out of left field, and with remarkably little fanfare, the 1997 Taxpayer Relief Act gave traders the option of reporting on a mark-to-market basis -- essentially to recognize gains and losses on securities held at the end of the year as if they were sold on that day-an opportunity for major cuts in their tax bills...." A subsription is required so I won't post the link. It may be worth picking up the hard copy issue or I could email the article to anyone (time permitting) interested in the full text. I recall someone inquiring about trader status earlier either here or on the Frontier thread. Here is a reposting of the SI thread that discussed (in part) the topic. exchange2000.com BTW, I too kindof sortof hope Elway finally gets his ring! Mark

To: Don Green who wrote (1925)	12/6/1997 6:40:00 PM
From: steve goldman	Respond to of 4969

Don, For many on this thread, one of the advantages of being a pure day trader is that if you don't take stocks home, you don't worry about what happens overnight. Actually, most traders might say that down openings are the best for traders, because on gap up openings it is difficult to find a good stock to buy that might go higher. As I am definately not a pure, 100% day trader, I face market risks each nite and each week. Nonetheless, without these risks, I would have missed out on xx points on dell, on lucent and ge and the other stocks that I held long over the course. This goes toward my feeling that your trading portfolio should only be a percentage of your overall committment to the markets. As well, my approach is relatively conservative, my portfolio skewed toward the highest quality companies and a relatively good cash position. Nonetheless, if we are going to extend our visions for the stock market out beyond the next few days, beyond those that will influence the next few trading sessions, what is it that makes you think that corporate earnings will weaken. I will agree that they can not continue at the current pace, or acceleration, but what is it that makes you think they will weaken? Ultimately, I am cautious on the markets, and have been so since dow 5500 but what in the numbers indicates the economy and earnings will weaken. By all accounts, the market seems to be heating up if anyting. The Fed seems like the only coolant around. Regards, Steve