To: Tommaso who wrote (11160 ) 12/9/1997 7:56:00 PM From: Joan Osland Graffius Read Replies (1) | Respond to of 94695
Hi Tommaso, >>I am more inclined now to start looking for something more like an undergound coal fire that no one can put out, that goes on and on, with the ground subsiding in places and buildings falling in and noxious vapors rising out of the soil until finally everyone gives up and moves away. But if I can just keep from dying of old age in the mean time I hope to make some money off this mess. And hope to live long enough to see the world economies put back onto a more rational basis. I hope your scenario is correct, since we can make good money in a market like this than in a crash situtation. I tend to agree with you, that is if this market goes down it will be a slow grinding death. The reason I say this is it takes a long time to change human behavior as well as TA is used by individual investors more now than ever before..oversold conditions, etc. I am working on identifying sectors that are going to be in trouble because of SA and Asia. We have seen the Semi group start their bear market. Interesting that I can only find one company that I would short that is trading below its 200 day moving average, but most below their 150 day moving average. We should have a fair ways to go on these. What I mean here is I like to short large companies that have a low probability of being taken over for a premium. I short stocks that are trading below their 150 day moving average and am now short a fair number of these companies. I also have shorted aluminum and copper. I have not shorted paper yet, waiting for IP to get out of his current trading range, also waiting for AA to drop out of his range before I short. The other aluminum companies have been sick for a while. One sector I think "bears" watching is autos. The big three are not trading in a range where I would short them "yet", but they are getting close. Does anyone have any new sectors I can add to my list? What I am looking for is sectors that will have negative relative growth. I also like to make sure the sector is in trouble when I am shorting specific stocks. IMO one needs everything on your side when shorting. Thanks, Joan