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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: TheLineMan who wrote (27849)	4/8/1999 2:26:00 AM
From: J.Y. Wang	Read Replies (1) \| Respond to of 122087

I saw TSATB going up big time but after being bent over by TUNE, I wasn't in the mood to mess with TSATB. Instead of stopping at 15, it could have gone to 30. These days, who knows? I made a little over a point shorting PAIR (again, takes many a PAIR to make up for TUNE). However, I think what happened with PAIR today demonstrates a significant point about the state of the present stock market. A false press release was created. PAIR issued a press release at 2:10pm stating that a false press release was created by a con artist, and the stock still closes up 7/8 (over 10%). WTF? I just read the article about Tokyo Joe in the April edition of Money. It was very interesting. The following is an excerpt: "He [Tokyo Joe] also learned the golden rule of online trading: 'Hype, man. Hype moved the f---ing stock.... The Internet is not investment. This is hype, and everybody should know that.'" That's not so much a slam against Tokyo Joe as much as it is a commentary on what happens when practically everyone can have access to instanteneous information (or misinformation) over the internet and everyone can trade up to 5,000 shares at Datek for $9.95. Stock Ponzi schemes are set up and traders willingly and knowingly (most) participate in them, hoping and praying that they are not the last ones out. A company that is valued at $100 million can have assets equaling a gigantic cow chip inside a safe, but retail investors don't care about fundamentals and may bid it up to $1 billion. What must happen for more sanity to come into the market? Probably a correction of 15-20% on the Dow, which will probably mean 25% for the QQQ and 50% or so for net stocks. The correction should last longer than the sorry excuse for a correction we had last year. The markets are traditionally guided by greed and fear. There is not enough fear in the market right now.