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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: nanu swamy who wrote (4570)	12/16/1997 6:08:00 PM
From: lml	Read Replies (1) \| Respond to of 19080

Nanu, thanks for your lengthy reply. If you're a day trader, I guess you need a system. And if the system you've explained works for you, gives you peace of mind, then congratulations. But keep in my mind that any of your "exceptions" can occur w/o warning @ any time -- like last week's quarterly earnings release a week early than forecasted, in which case you'd best protected if you're a day-trader & have narrow stop & limit orders in place. The point I was trying to making was that little risk is removed owning the stock by following the movement of the Dow. Either you'll be on or off the wagon when the stock shifts into overdrive or plunges off a cliff as it did last week. Looking to the Dow for answers will not eliminate your "exceptions" from the universe of events affecting all stocks.

To: nanu swamy who wrote (4570)	12/17/1997 1:12:00 AM
From: Mo Chips	Respond to of 19080

I find your theories interesting, but kind of like a traffic accident. I completely disagree with your theory that MMs value a stock relative to the Dow. This couldnt be further from the truth. If anything, MMs analyze a purchase or sell based on the entire universe of stocks. Just like any investor would, you consider a risk free rate of return (gov't t-bills), your cost of capital, opportunity cost, risk reward, ect. If you could find ONE MM that says, "gee, ORCL is at 23 and the DOW is at 8000, I think ORCL should be at 23 3/4 considering the DOW. I think I'll buy." I'd be surprised if you can... I agree with this post... Message 2982351 By the way, ever read the book A Random Walk Down Wall Street? Probably the antithsis of the books you are reading. Mo