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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (3994)	4/28/1998 8:54:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 29382

Hi Serg, Never too busy for you. :-) I wouldn't ever want to describe a situation as "time to panic". What this indicator tells you is there is serious risk in the market and you should seriously evaluate your portfolio. There are many things you can do, as you know. Covered writes, protective puts, index puts or selling of stocks that have been under performing. Now would be the time to consider some of the above. Not ever, that I know of, did the Option bullish percent reverse down and the market didn't follow. A crash, a correction, a bear market? I don't know but something. Several things are happening. I'm sure you have heard of the interest rate worries and some of the P&F indicators have backed that concern. The Dow 20 bond average reversed down, the T-bond broke out of its negative trend, the utilities indexes have reversed down and the interest sensitive sectors are loosing momentum. None have given sell signals so I wouldn't be off selling bonds now but I would be watching it. I will note on the thread if this happens. Also you probably noticed gold and oil have been doing better. All indications of possible higher interest rates. You can imagine with this bloated market what a rate hike would do. Noted in this, these sectors oil and precious metals, especially oil, may be good sectors to buy in where as interest rate sensitive sectors wouldn't be. Our NYSE bullish percent has been above the 70% level for some time (what we call the red zone) and the sectors are skewed to the overbought side. All primed for a correction. If you have fundamentally sound companies I would suggest taking some insurance out on them. If you have companies that have been under performing the market and are below their October lows, I'd consider liquidating. Some just hold and add to positions after it corrects. It all depends on your strategy and plan, how good the companies are and how extended is your risk. Certainly no one should be margined!!!! Hope this helps. If you need any other info just ask. Happy to help. Jan

To: Sergio H who wrote (3994)	4/28/1998 9:43:00 PM
From: David Graham	Respond to of 29382

Sergio and Jim: You guys may be a little tired of hearing about this one but EGNS had some major news yesterday. Now wwwhy do you think they would sign a letter of intent to acquire a Chinese company with huge cobal problems of their own? Lets see, 15 dollars a day or 180 an hour, which am I gonna pay. biz.yahoo.com Grammy