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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: larry who wrote (13781)9/16/1998 5:00:00 AM
From: craig crawford  Read Replies (2) | Respond to of 18691
 
>> DELL & MSFT will be among the last stocks to sink if the market really sinks. Even if that happens, you can short those stocks (and buy some calls) to hedge your naked puts. <<

If the market really sinks there will be no upticks to short. You probably won't get accurate quotes or get your orders filled properly--if at all. Microsoft or Dell will not be spared. They will probably fare worse, because everyone owns them. They will have to be sold to raise cash for redemptions and margin calls.

On October 19, 1987 there was so much selling pressure that 11 out of the 30 Dow stocks didn't even open for the first hour due to order imbalances.