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

To: Trader J who wrote (10654)	3/5/1999 5:14:00 PM
From: Triffin	Respond to of 56535

TJ .. AMZN short ? Looks like you'd have to risk it to WED-THURS highs of 127-127.50 The intra-day volatility is so high on these that from a TA point of view you have to give them more 'room' than you might want to risk..I would think you could certainly trade with a 'short' bias..can't see the market going +200 pts every day !!! Jim in CT..

To: Trader J who wrote (10654)	3/5/1999 6:58:00 PM
From: Jon K.	Read Replies (2) \| Respond to of 56535

TJ, let's not talk about short<g>. Feel like standing in the rail way trying to stop 100 mph locomotive. What a humbling day. Lost half of this year's gain in just 2 days. I am thinking about using a stop loss (not a tight one)more often. When a stock moves 20 to 30 point a day, you could get wiped out very fast. Can you give some thoughts on 'stop limit' orders? I rarely use it because of the thoughts that MM can see me sitting out there, and they could come down just to pick mine up. And also can you give some advice on how to deal with a day of heavy loss? Regards, Jon

To: Trader J who wrote (10654)	3/5/1999 9:41:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 56535

Trader J - AMZN short - You have been thinking about an AMZN short. So how does this sound - based on earthly fundamentals AMZN and YHOO are both way overpriced. AMZN is doing something old - selling books - in a place that is new - the net. YHOO is doing something new - being a portal/gatway/home site/search engine - in a place that is new - again the net. Yahoo is making money and perhaps can make more money in its new place doing new things. AMZN is not making money. Traditionally books are a low margin business. Publishers sell to all bookstores at pretty much the same price. (The American Booksellers Association sued and won against a group of major publishers stopping them from giving favorable terms to chain stores and other large customers.) Price discounts can come out of only one place - margins. So AMZN may never make much money selling books. CD's and video's are not much better. So how does this sound. Go long YHOO and use the margin to short an equal amount of AMZN. If all the inets zoom - or crash - the "neutral position" should not suffer. As long as here forward AMZN performs more poorly, or less spectacularly, than YHOO you make money. What do you think? Tempting or crazy? StockHawk