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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Trader J who wrote (6143)	1/26/1999 10:48:00 PM
From: E. M. Edds	Respond to of 56535

I've been in WCTI, NAVR, WINR, PNLK, BKS, CMGI, and my next beauty is SFLK. Any of those, perhaps?

To: Trader J who wrote (6143)	1/26/1999 11:04:00 PM
From: snerd	Respond to of 56535

All... NASDAQ statement and warning... Nasdaq Cautions Investors Filed at 8:52 p.m. EST By The Associated Press WASHINGTON (AP) -- Concerned about the recent wild swings of the Nasdaq Stock Market, the brokers' group operating the market has warned investors they may lose money from delays in executing trades or may be unable to get into their online accounts. And as trading volume shoots higher than the electronic Nasdaq market can handle, NASD Regulation, the self-policing arm of the National Association of Securities Dealers, is suggesting that brokerage firms, too, warn investors of possible losses and aggravation. Nasdaq, the nation's second-largest stock exchange, has been whipsawed in recent weeks by roller-coaster swings in prices of Internet stocks -- some of them gaining or losing $50 or $60 a share daily in extremely heavy trading. In a trading frenzy earlier this month, huge volume over the Internet caused delays in online access for several firms, potentially costing investors thousands of dollars. A group of NASD officials and executives of Wall Street trading firms has been meeting almost weekly since December to discuss the situation and possible solutions. Ken Pasternak, president and chief executive officer of Knight Securities Inc., the biggest Nasdaq trading company, said Tuesday the group was examining possible ''structural solutions.'' He declined to elaborate. In bulletins to its member firms and in a posting on its Web site for investors, NASD Regulation cited the recent ''turbulent market conditions.'' ''Recent increased volatility and (trading) volume present new issues for investors, regardless of the method of trading,'' the group said. ''Customers eager to trade Internet stocks have flooded their brokers with large numbers of orders (to buy or sell), leading to large order imbalances ... and backlogs,'' one of the bulletins to firms noted. Also, investors who trade through brokers at full-service or discount firms may have trouble getting through to them by phone, officials said. In response, many firms have started to use procedures designed to keep customers' orders flowing while also reducing the firms' exposure to ''extraordinary market risk,'' NASD Regulation said. Some Nasdaq trading firms will temporarily discontinue normal automatic executions of trading orders, handling them manually. NASD Regulation told the firms their handling of customers' orders must be ''fair, consistent and reasonable'' and they should tell customers when unusual execution procedures are being used in a volatile market. NASD Regulation also warned online trading firms that advertisements or sales brochures should not exaggerate the speed and reliability of their services. The online firms also should inform investors about the risks of trading over the Internet and the possibility of delays in trades being executed, the regulators said. The group said investors should educate themselves about how securities trades are executed, especially during periods of volatile prices and heavy volume. They should also ask plenty of questions before opening an online account or placing the first trade, the group said. State securities regulators applauded the NASD's action. ''NASD Regulation is right to caution brokerage firms and the public about volatile markets,'' said Marc Beauchamp, spokesman for the North American Securities Administrators Association. ''News coverage has glamorized online trading and portrayed Internet stocks as the high-tech road to riches. Main Street investors -- unless they have the temperament of gamblers and money they can afford to lose -- should probably stick to mutual funds.'' Spokesmen for the U.S. Securities and Exchange Commission declined comment on the NASD's action. On Monday, the SEC approved Nasdaq's request to expand from five to 15 minutes the ''window'' in which trading firms can make price quotes on newly released stocks, called initial public offerings, before they officially begin trading. ------ For more information, investors can visit NASD Regulation's Web site at www.nasdr.com or NASD's investor Web site at www.investor.nasd.com.