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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5728)	3/4/1998 10:28:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 120523

A few thoughts on the markets: Last October, The market went through the following: Wave 1 2 3 (waves in days, - is down, + is up) DJIA -3 +3 -3 NAS -4 +3 -4 S&P -3 +3 -4 RUT -3 -2 +4 (RUT=Russell 2000) All markets recovered to 95% of the previous values in 3-6 weeks, and the largest drop occurred on the 3rd day of the first wave. Not all stocks dropped on the first day. Panic and existing stops fueled much of the third day's drop. Not all stocks will recover. If they are overpriced/overvalued, they will stay depressed for sevral weeks. I am still long on 10 stocks. All are above entry. I may sell some tomorrow. I won't know until open. Nor will I buy anything tomorrow. I will watch. If the tanking starts, it will continue on Friday. This weekend I will set buy stops per the experimental method I tested last October. I will repost the stock criteria and method this weekend. For new threaders, it was a method to trade intraday when you couldn't get your online broker or offline phone specialist. I have only three stocks left to correct in the database, and will finish that tonight. I doubt I will be able to answer all the "what do you think I should do..." questions for specific stocks, but I will try. If you feel you must do something, don't. Deal with the situation rationally and calmly, and remember the 95% recovery rate. I offer the following general suggestions: Strong stocks recover the quickest. If you own a fundamentally sound stock, remove the protective stop. It will recover the quickest. Home Products, Health and Consumer Goods will be the safest and Precious Metals will rise. I am still long on 10 stocks. All are above entry. I won't sell anything tomorrow. Nor will I buy anything tomorrow. I will watch. Unless you have shorted before, can watch the intraday, or know how to set buy to cover stops on BOTH sides of the short postion, I don't recommend it. Do not sell in panic. Do not buy. Markets will move faster, and online trading will be slower. If you can move mutual or 401k funds to fixed income accounts, tomorrw will be a better day to do it than Friday if the market continues down. If your profit margin on a stock is minimal or negative, treat tomorrow as you would for any other day and make the same decisions you normally would. Its not which adversity we endure that measures us, but how we react to it. lastshadow