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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (8716)	2/17/1999 4:38:00 PM
From: Rick Faurot	Respond to of 43080

<< this should be a buying opportunity>> Agree. I am just waiting for the volatility to settle out and probably a lot of other people are too. I think it will be awhile and it's going to take above average nerve to plunge into this chop. I don't have the nerve for it yet. Rick

To: AlienTech who wrote (8716)	2/17/1999 4:50:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 43080

"They made a whopping 31 cents. 31 cents you kidding?? SYMC made like 45 cents and its trading at 17!" Actually they made 5.2 billion, they just have a few more shares to divide that by than SYMC... The problem is that the stocks have come DOWN to their 200 day MA, not up to it, which is the buying signal. Right now there should be more hesitation to go long rather than an impetus to jump in. The volume is going to be the key to watch now and not the price action. There are about three weeks of 10-13 billion per week in 401k/IRA/fund money stockpiled waiting to get invested already. We can look at the indices and sectors all we want and think this stock has a good price, or that one should be low enough. But the entry will come when the funds start loading up. And they can be patient about that. The longer we stay in a horizontal correction, and we still are even with today's numbers, the more likely a drop. The caveat is not to get overzealous here. Buy what looks good for the daytrade, but if you are investing for the term, make sure you set some stops and reenter when it bottoms the next time. We won't know when the reversal is until after the fact, so trade carefully. lastshadow

To: AlienTech who wrote (8716)	2/17/1999 8:56:00 PM
From: steve goldman	Read Replies (3) \| Respond to of 43080

Some additional material relating to short selling: I wanted to clarify my understanding of short sales rules. There is no per se rule which says that stocks under five dollars, penny stocks or bulletin board stocks can not be shorted. They can be shorted if the stock can be borrowed. If your clearing firm has it, and can be borrowed, you can short it. Obviously such stocks typically are more difficult to borrow and may not be marginable, but it can be done. Note that if the stock is under five dollars, the position may not have any loan value, that is, it may be nonmarginable. As a result you may need to come up with 100% equity for the short position, or upto $5 per share depending on the clearing firms' margin requirements. Shorting IPOs. IPOs may be shorted as soon as the clearing firm has a position which is hypothecated by the client. In my experience, while a firm could theoretically have such a position on the first day the stock comes to market, I have rarely ever seen this. Typically, the position becomes available on settlement day, when positions of the clearing firms' clients settle. At that moment, the clearing firm, holding the clients' stock in street name, now has settled securities. Thus, if a stock comes to market on Tuesday, the clearing firm may have settled positions in the stock on Friday. Friday would probably be the first day the stock can be borrowed and thus shorted. The exception would be larger firms which have inventory from clients who received the stock as a result of the IPO. That is they received the shares ahead of it coming to market as part of the IPO. Syndicate members though must 30 days to short the position. BTW...when gazarelli comes on tv and starts getting bearish, outside of wondering what happened to her dow 10k call, i cheer on her bearish sentiment and start buying. Regards, Steve@yamner.com