3SOF

Too bad 

CSCO down big time now and the market in a very ugly situation !

time to buy, just now!

IBD has a new category I havent seen for describing where the market is right now.  Usually they say confirmed correction, attempted rally, or confirmed rally.  After today it is "market rally under pressure". 

On the positive side they had this to say:
----------------------------------------
Despite the recent slump, the market still has several factors working in its favor.

First, consider recent history. The last time the Nasdaq flashed a down day of 70 points or more was Oct. 19. A week and a half later, the index had turned around and surged to new high ground.

Next and more importantly, check out Wall Street's leaders. If you own Google, (GOOG) Research In Motion, (RIMM) Baidu.com (BIDU) or other institutional-quality stocks and never checked the day's headlines, you never would know that the broad market had sharply fallen.

That is a lesson in itself. If you don't own such stocks, it's time to take a hard look at your portfolio.

David,

I have a some questions. These are of a general nature, but I favor your opinion.

1) How serious do you think the Chinese are to get ready to dump their USD? Converting to Euro sounds like a big step and they'll lose even more by driving the buck down.

2) What can the US do to reduce dependence on Chinese imports? I realize that $40bln a month goes to the Middle East, which is close to the growth in external debt, by the way. But still, is it to blantant to institute economic sanctions against China for regulating its Yuan?

3) How much should we want to make to feel comfortable here? If we take at least about 8% inflation in the US, about 10% annual reduction in the dollar value (today $CAN=US$1.1 !!!) and about 5% reduction in property values per annum, we get 1.08x1.1x1.05=~1.25. This is 25% capital growth post tax. In pre-tax money, using 25% tax, we get 1.55. Of course, it largely depends on the value of the depretiating property vs the invested capital. But nevertheless, it comes down to some serious money to be made to only offset the capital erosion.

  I guess I just share the worries of many others about the state of the US economy. I believe that, without substantial political changes, it'll be hard to come out of this predicament for the country.

Thanks.
Berloga

From an ER I read tonight;

"We believe the odds favor a further drop in interest rates and that markets will return to the historical pattern of being up in the third and fourth years of the four-year presidential election cycle," Mr. Holmes says. "A century of data shows the presidential election cycle to be one of the most reliable market barometers. The economic conditions we see today, both at home and abroad, give us confidence that this year and 2008 will follow the long-term trend."

Quote from: tokyopua on November 07, 2007, 10:04:19 PM

Next and more importantly, check out Wall Street's leaders. If you own Google, (GOOG) Research In Motion, (RIMM) Baidu.com (BIDU) or other institutional-quality stocks and never checked the day's headlines, you never would know that the broad market had sharply fallen.

That is a lesson in itself. If you don't own such stocks, it's time to take a hard look at your portfolio.

Quote from Rich Duprey - Motley Fool;

"Because the world of penny stocks is full of shysters peddling manipulation and deceit, it's often hard for investors to separate the few good companies residing there from the multitude best ignored."

"Although many people like investing in penny stocks, believing that such stocks have a better chance of increasing many times in value, nothing says that a $20 stock can't double, triple, or quadruple in value just as easily as a cheaper one. Considering that a cheap stock may be cheap for a very good reason, there's ample evidence to suggest that higher-priced stocks may actually have a better chance of going up than cheap ones do. "

Quote from: BigSully1 on November 08, 2007, 01:54:42 PM

Quote from: tokyopua on November 07, 2007, 10:04:19 PM

Next and more importantly, check out Wall Street's leaders. If you own Google, (GOOG) Research In Motion, (RIMM) Baidu.com (BIDU) or other institutional-quality stocks and never checked the day's headlines, you never would know that the broad market had sharply fallen.

That is a lesson in itself. If you don't own such stocks, it's time to take a hard look at your portfolio.

Quote from Rich Duprey - Motley Fool;

"Because the world of penny stocks is full of shysters peddling manipulation and deceit, it's often hard for investors to separate the few good companies residing there from the multitude best ignored."

IEAM is a very good example of this, hope you guys threw in the towel finally on that one, long before today.

Funny how everyone completely clams up when the chips get down a little. I get all exited when there's a big sale going on and go on a big shopping spree.

Hey BigSully1
I thought the same thing. Not much chatter. I enjoy reading everyone's thoughts and comments.
I love sales too, unfortunately, I am "stuck", no free cash. Oh well, another day.

Posted on: Today at 03:22:06 PMPosted by: BigSully1
Funny how everyone completely clams up when the chips get down a little. I get all exited when there's a big sale going on and go on a shopping spree.       
                  How can you tell when something is ''on sale''? I recall scrambling to sell jaso at around $26 and feeling lucky to have made a small profit. Look at it now. Then I watch gigm dive into the teens,feeling really dumb,but not pulling the trigger either.Now is gigm on sale?Or do a lot of people think it's headed back to nine. Thoughts to ponder.

Probably no surprise after the carnage we saw intraday and the volume, but IBD now says we are in a correction.  The rally we had recently was really pretty short, hope this correction will be short too and that we can still have a year end rally.

Quote from: soxguy on November 08, 2007, 07:31:41 PM
Posted on: Today at 03:22:06 PMPosted by: BigSully1
Funny how everyone completely clams up when the chips get down a little. I get all exited when there's a big sale going on and go on a shopping spree.       
                  How can you tell when something is ''on sale''? I recall scrambling to sell jaso at around $26 and feeling lucky to have made a small profit. Look at it now. Then I watch gigm dive into the teens,feeling really dumb,but not pulling the trigger either.Now is gigm on sale?Or do a lot of people think it's headed back to nine. Thoughts to ponder.

Hi, Soxguy. I have enough confidence in GIGM to believe the 50MA was a very good place to buy, so to me the stock was indeed very much on sale at $18.48. That's not to say that somebody won't be willing to sell for less later. IBD says that usually a pullback to the 10 week (50 DMA) is a very good place to buy or add on a market-leading stock, and GIGM is a market leader, even though it's not on their 100 list, at least not yet. I've still alot to learn on T/A but I think if you will look at like a 10 minute chart, you will see that many thought the same as I and were buying at the 50., check out the volume during that time and the total volume for the day. I think this should confirm that it was a good buy. This was GIGM's only pullback to the 50MA since it's awesome run began in August.

What ever would make you think it's ever going back to $9, barring some anti-gambling/gaming legislation? Is that what you fear? I see no reason to fear it, only to be aware that it could happen someday. Until then I see NO reason at all to be bearish on it, and every reason to remain bullish. Try to avoid those Yahoo message boards!

I don't understand what you mean by "Then I watch gigm dive into the teens, feeling really dumb,but not pulling the trigger either".
If you mean feeling dumb for not selling before it sold into the teens, don't feel that way, I didn't sell any, David didn't, and I think alot of others didn't. If you mean dumb for not buying today, well don't do that either. I still think its "on sale" and IBD says that still in buying range up to 5% above key points, but they would also say to always use a stop loss  at 7 or 8 %, if you're into that stop thing, but I think today GIGM confirmed it has strong support at the 50 DMA, by the volume, and the bounce.

As for SYX, for me it was definitely on sale today. All the latest info was already out there for all to see  (it was awesome) and I couldn't believe there were those who were still selling around $20. I had to double up, there was nothing at all technical about it, the fundamentals were displayed like a peacock's tail.  Probably not the best sector to be in at the moment, but most definitely undervalued by my standards.

Best of luck to you, Soxguy.

Hey tokyopua,
I hope this is a short correction too.
I am not expecting much from the month of November. Hopefully, by early December things will pick up.
Have a great weekend.

Quote from: Houlahan on November 08, 2007, 04:08:36 PM
Hey BigSully1
I thought the same thing. Not much chatter. I enjoy reading everyone's thoughts and comments.
I love sales too, unfortunately, I am "stuck", no free cash. Oh well, another day.

Hey Houlihan! Yes it feels lonesome on days like today. Sometimes I wonder if I'm the only one  closing out hedges and buying. Hope I did the right thing, there might be better opps coming, who really knows?

Best wishes to you, Houlihan.

Hi BigSully1,
I am sure you will be fine. There is always a rally somewhere.
There were some good buys today, if you were brave enough to buy and you were. It was good to see the rally from today's low. I need to learn when to buy and when to sell.
Thanks for posting good ER stocks.
I enjoy your posts.
Happy trading.