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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: BoNg-N-BoNg who wrote (13285)	8/21/1998 5:42:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

The Market Gems Crystal Ball... We can not tell how third quarter profits will come in but it has become apparent that the situation in Asia will continue to have an increasing affect. I would stick with the better earnings stocks because when the Asia problem stops setting the pace for the market, the mist will clear and the best earnings stocks will again be in the forefront. The stock market on the other hand is still very volatile due to both economic and political worries. All these have set off a sell off. It is not really important whether or not these concerns are realistic and have merit in the short term. What's important is the semi-panic that it's causing and the domino effect of worries that keep escalating. In light of this I will play off both ends: the panic-stricken investor will continue to sell off, no matter what price they get. That's when the 'puts' are the way to go as they have been these last three days. The more level-headed trader will wait for the sell-off and get in. They will either get the better earnings stocks like DELL, MSFT, etc.. or go with the very short-term call options and play off this volatility. Short term only because the slightest rocking of the boat will panic investors to pull out their money and you don't want to be left holding tech stocks when they mount yet another retreat! Another way is to go with domestic-oriented stocks like retailers, drugs and food. These are still 'holding their own'.. Either way after labor day when the market volume increase there will be ample opportunities out there. Timing the market.. yes, we'll time the market... We'll buy puts when everyone is in a panic and buy calls slightly before everyone calms down.......