Session of 02/27/2007

[tokyopua]

Looks like maybe there was some trading program algorithm that might have panicked and dropped the DOW so much?  Of course it is likely to drop below this level in days to come, but still intersting if so to see the effects of computer trading... 

The only good thing here is that if this is just a correction, it is happening fast and furious, which means buying opportunities could present themselves in as little as a week.

[nullzero]

David should quit that smoking habbit! Anyway I bought some SILC, BFLY, OFI, IMOS, and EXM today. I cut my position in MSI with a 10% gain... Hoping for a rebound in MCZ tomorrow.

[nullzero]

Its going to be all eyes on china later tonight. Lets see if the Chinese stock exchanges rebound.

[ravenquork]

Looks like maybe there was some trading program algorithm that might have panicked and dropped the DOW so much?  Of course it is likely to drop below this level in days to come, but still intersting if so to see the effects of computer trading... 

The only good thing here is that if this is just a correction, it is happening fast and furious, which means buying opportunities could present themselves in as little as a week.

From Briefing.com:
Follow-up on this afternoon's gap down in the market

   Regarding today's afternoon plunge, a CNBC commentator notes that at first traders on the NYSE floor thought it was a bad print. Then traders believe that a series of trades were queued up against the curbs, and when the curbs were released, then the Dow gapped down another 200 points in a matter of minutes. Says traders have never seen such an instantaneous gap down... It's worth noting that at least for the moment, the Dow seems to have held its initial test of its Dec low of 12,090

[nullzero]

Will be interesting watching Fast Money today. Like to see what the consensus of the market by the traders on there is.

[David Randolph]

The 3 Stocks on Fire Portfolio went down 8.17% on the day as I liquidated the 3 holdings for small losses. It was its worst day ever.

Still up 58.75% since inception on January 19, 2007. My concern is that it won't be that easy to make money going forward.

If this is the start of a bear market downturn, I know that trying to grab oversold stocks for a brief bounce is a losers game, and that shorting is also very difficult, as short squeezes keep happening.

Some men made money on previous bear markets, but not a lot.

Well, tomorrow is another day, I'm glad the market closed so I can ease my mind to look things over and put them into perspective. A speculator needs to be prepared to change his mind when the market forces dictate him to do that.

However, should an investor also change his course of action because of the possibility of a 20 or 30% general market fall?

I guess he at least should become more demanding when looking at valuations. History says a market is cheap only when trading at 8 times earnings. That's the average. For small caps it should be less than that.

I'll think some more, thanks for your insights, see you tomorrow

(I'll close the board so I can rest. You take a rest too)