Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (58178)	12/1/1998 12:13:00 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 58727

Waterhouse was cited in the Wall Street Journal yesterday as raising Margin requirements on some internet stocks. The truth of the matter is Waterhouse is applying restrictions to "Concentrated Accounts" as they often do. An account invested wholly in AOL, Yahoo!, and e-Bay is not affected. An account invested completely in e-Bay must meet 50% minimum Margin requirements on a daily basis. A diversified account must start at 50% equity and are permitted to fall to 35%. This restriction is often applied to a concentrated account, and for the customers own good, After all, what sane person would put all of their money into only one volatile stock.

To: HairBall who wrote (58178)	12/1/1998 2:17:00 PM
From: donald sew	Read Replies (3) \| Respond to of 58727

LG, The DOW got about 140 points above the intraday lows, so some sort of reversal to the upside started already. On a subjective basis, if the market does not move up strongly within the next few days, I will become even more suspicious of its strength. I guess what Im saying is that if the DOW doesnt pop hard immediately in the next few days to continue this upswing strongly, I may interpret that as a possible beginning of a STAIRSTEP, which could take the form of a WEDGE, PENNANT, OR FLAG. Around 1:30 the DOW hit 9130, the high of the day so far and 140 points off the lows. Since then it has been flat/slightly down. It will be interesting to see how the market performs during the last hour of trading. I am getting the feeling that the market may not rocket upwards in the last hour of trading, but that is a simply a guess. If we close negative today, that could be a technical hint that this reversal upwards may not be that strong, and may be the beginning of a STAIRSTEP. I checked with my broker pertaining to U.S.CLEARING and he confirmed that they will be increasing the margin requirements on internet stocks, but U.S.CLEARING has not yet released the exact week nor have they established the effective date. Also heard on CNBC that SOLOMON,SMITH BARNEY and DONALDSON,something,JENRETTE are also planning to limit margin on internet stocks. Does anyone know or have any idea when these firms will impliment these new rules. seeya