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Strategies & Market Trends : Charts With An Attitude; Trading In & Out -- Ignore unavailable to you. Want to Upgrade?

To: PitBull who wrote (4559)	1/16/1998 2:16:00 PM
From: Doug R	Read Replies (1) \| Respond to of 4701

Enthusiastic, When Bill buys XYZ on Wed. Bill has $100,000 of unsettled trades outstanding. 3 buys and 2 sells. He basically has NO CASH in his account. It takes 3 days for the monetary details to settle so if Bill buys XYZ on Wed. and it gets downgraded on a downside earnings surprise and drops to 10, his broker will not like it at all since the brokerage now has a cash flow problem due to the 1,000 other Bills that have done the same thing. I don't know the details of the SEC rules re this scenario but I think you get the idea. Doug R