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To: Bill Harmond who wrote (39964)2/14/1999 12:19:00 AM
From: Sarmad Y. Hermiz  Read Replies (1) | Respond to of 164684
 
William,

Another point I want to bring, which could also be product of imagination, is that there is a good possibility of margin calls now will bring on forced selling.

Even though many brokerage firms have increased margin requirements on some stocks, so the shares are mostly paid for, the drop in prices reduces the equity available to maintain other marginable stocks. It also makes it difficult to average down by buying at lower prices.

Another factor is that many people who dabble in one internet stock, also have others, and they are all down. So this time I think a simple rule of 50-day MA will not hold.

-Sarmad