Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Steven Finkel who wrote (5580)	4/15/1999 9:08:00 AM
From: Rande Is	Respond to of 57584

Major rotation yesterday all at once. Big sell-off of high-fliers. . .and enormous money into Dow blue chips and small and mid-caps. Obviously this was a concerted effort by the largest of mutual funds and/or brokerage houses. Today will determine if it was a one time move or the end of the speculative party. It amazes me that the market could get hit with so much by so many so quickly. We are left to 'assume' that these thousands of fund managers all had EXACTLY the same idea to sell ATHM and buy Alcoa . . at the very same time. . . with no warning. .no CNBC commentary. . no clear reason. I think I need to dust off my copy of the movie "Wall Street" and watch how Gordon Gekko operates again. That 'good ol' boy' network seems to be at work again. Today, the analysts are tripping over each other, upgrading stocks like Boeing and Alcoa. . .Goldman Sachs downgraded Alcoa at 39, but suddenly mid-fifties they turn around and UPGRADE it. What does that say about the intelligence of the analysts? To be fair, what does it say about the integrity of the MANY brokerage houses that did this? Yesterday morning they felt these stocks were not worth buying. Then their bosses clue the thousands of brokers into the "game plan" . . and suddenly the unloved forgotten blue chips are all the rage and are suddenly upgraded. Don't believe it. This was pre-calculated and well executed. I could not sell-off fast enough with current equipment and brokers. . .it was impossible to sell everything fast enough through an online brokerage. Only sold those that I thought would not bounce back quickly. Things like ATHM will always bounce back. There were many that were not as quick as I was to see what was going on. . . .they lost big. For instance. . .you buy a stock at 160.00. . .it moves up to 200.00. . you are thrilled. Then in 15 minutes you watch it fall back suddenly to 160.00, 150.00, 140.00, 130.00 . . NOT KNOWING what to expect you sell reluctantly at 125.00, for a 35 dollar loss per share. Next morning it gaps up all the way to 160.00, you catch it on the rebound at 175.00. . .10 minutes later it is trading at 150.00 where it closes. . . you just lost another 25 dollars per share. This is an example of EXACTLY what Wall Street WANTS you to do. DON'T FALL INTO THIS TRAP. Take profits EVERYTIME you hit your target prices. You place 200 bucks on 31/black on the roulette wheel. You win 2,000. You let it ride. It hits again. . unbelievable. You now have 20,000 in 5 minutes. But rather than taking 18,000 and putting it in your pocket and playing with 2,000. . . you let the whole 20,000 ride on 31/black. What are the odds it will come up again? Don't worry about it. You will know the odds exactly, cuz you will have the rest of your life to calculate it over and over. . .you will think of what could have been, but wasn't because of a sudden fit of greed and loss of all common sense. Does this apply to anyone trading stocks? Rande Is