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Technology Stocks : INTERNET MANIA! Day Trading Net Stocks -- Ignore unavailable to you. Want to Upgrade?

To: TWICK who wrote (142)	11/28/1998 10:18:00 PM
From: KZAP	Respond to of 1054

This sector is on fire! The economy is in a frenzy and the markets are sitting on their highs. What do you expect? I expect the markets to continue up with the I net stocks leading the way. In Feb. there will be an adjustment. KZAP

To: TWICK who wrote (142)	11/28/1998 11:48:00 PM
From: Tai Jin	Respond to of 1054

I agree with what you say. In fact, this is an email I had sent to some friends earlier today. Basically, there is much opportunity to profit on very short term trades - both long and short. But I'm expecting the dust to settle within the next month or so... The current Internet mania has been compared to the tulip mania of the 17th century. The belief is that the bubble will burst at some point. An unforeseen event will definitely cause the bubble to burst. But right now, I see prices continuing to bid higher as retail investors pursue their dream of retiring overnight by investing in these highly speculative stocks. While I don't see these stocks crashing to premania levels right away, the recent gains in e-tail stocks has built in such high expectations for these companies that there is no where for the stocks to go but down (but not before going up some more while the momentum lasts). There is no way that these companies will double or quadruple their sales during this holiday season as has been priced into their stocks. I think this failure to meet expectations will cause many of these stocks to correct by 25-50% from their highs. What's telling is that even the third- and fourth-tier stocks in this sector have also been bid much higher. Basically, traders and investors are looking for scraps at the bottom of the barrel since the bigger names are priced out of their range. Well, there's a reason why these stocks were at the bottom of the barrel, and their fundamentals haven't changed. These stocks will be the first to fall. There is certainly a lot of cash being pumped into these stocks. The problem is that this cash is fickle. Most of the money is coming from momentum traders and investors. This type of trading causes extreme volatility in stocks as traders and investors move in and out of stocks as they gain and lose favor. The prevalence of Internet chat rooms also contributes greatly to the waves of buying and selling in individual stocks. I would draw an analogy between these chat rooms and the packs of roaming hyenas hunting for their next kill. As an investor, you should be careful about buying these stocks at current prices. I expect to see end-of-year selling as investors lock in 100% or more profits this year. Let the dust settle before taking a position based on good fundamentals. As a trader, this volatility is a gold mine for trading on both the long and short sides (just don't fight the momentum - you'll be trampled). I just wish that more of these stocks were optionable. Actually, TheStreet.Com has filed to have its Internet index traded - that could be an interesting trading vehicle.

To: TWICK who wrote (142)	11/29/1998 12:48:00 AM
From: Jan Garrity Allen	Read Replies (1) \| Respond to of 1054

I tell u one morning I wake up to see my little AWEB sprouting and then I see its name being spammed on all the boards and before I can spell nut it has bloomed!! It is like taking candy from a baby and it is like a pack of wolves roaming from one stock to another !!I personally own AOL, MSFT SEEK and other stocks for the long term and I do play with some short term money but this is unreal and of course the whole internet explosion and communication has contributed to all this !! So I do my dd and get in where I can short term but it is very limited and I really cannot day trade very often cause usually I fall asleep over here in ASIA!! Good Luck to all !!

To: TWICK who wrote (142)	11/29/1998 1:29:00 AM
From: wiley murray	Read Replies (1) \| Respond to of 1054

Hi Twick:Thanks.Shorting:I am happy to see a number of post on this thread that raise the question you are raising as it relates to the net stocks going down.That is why I wanted to start this thread that will address both long and short positions on the net stocks.It will be a day by day situation as to when to short if you can find shares to short. Right now that is a problem.As we keep sharing on this thread let us hope there will be enough information shared so that all of us will be prepared to short when necessary.Keep bringing up this issue so we do not lose sight of it. Thanks again.