I think most of us realized that, but volatility is more important than direction for many of us...and that has been lacking for some time. That's not to say there isn't a living to be made here, I just miss the $10k days.
Speaking of the bull market. I ran across a video tape the other day from CNBC back in the day. I had taped a few hours of the daily action by mistake as I forgot to change my tuner from what the VCR would tape. In any event, I do not mean to get off subject, but there were some great great commercials during those bull market days, as alluded to in a previous thread. Also, it is so strange to see the bottom ticker scrolling with BRCD, BRCM, JDSU, INSP -- all trading on the tape @ $200++ Here is a serious question...do any of you really think Nasdaq will see 5000 again in the next 25 years????? I know that the gurus had projected us to be at Nasdaq 10,000 by now, since "those interest rate hikes back in 1999 would not affect technology stocks." I gues they were off a few points or so............
I remember one day when Rambus came out with some good news (I think it was some big contract announcement or something...the bull market days feel like a drunken blur to me now). Joe Kernan on CNBC (this was back in the days when I watched CNBC) kept talking it up all day long, and it seemed like every time he came on and talked about it, RMBS went up another 5 or 10 points. It was ridiculous. By the end of the day, if I remember correctly, the stock was up over 100% This kind of movement was not uncommon for RMBS in those days. During the bull market, there were so many day traders, and so many followed CNBC like a pack of lemmings. They ran up anything that received positive mention to rabid extremes. Like I remember one gaming stock that I was watching in '97 went up 300% in one day. Again, I think it was because CNBC kept talking it up.
Playing stocks mentioned on CNBC was one of my most profitable strategies in 2000. I must have made $50K just from CNBC pump & dumps. They were usually some low float internet or biotech dog of a company. I'd play with small size(usually 500 shares or less) to make sure I could get out easily. I only bought when they would hint what the company was and go to commercial. I'd quickly figure out which company he was talking about and buy a small lot. By the time he came back on and mentioned the stock it would be up another $2-$3. It would pop a little further once mentioned where I would sell into. The key to this strategy was to buy before he mentioned the stock and sell while it was still going up after he mentioned it. If you waited til the stock stopped going up you would probably give up a dollar or more trying to get out. I remember I would pass on the stock if I couldn't figure out the stock before he mentioned it or if it was already flying up. Many times I left much more on the table but I didn't care because I knew there would be another play tomorrow. Today these stocks are either gone,under $1 or down 90+% off their highs! I remember hating when Joe Kernen or Maria B. would be on vacation as they were the 2 best pumpers! Wow! This must be my longest post but this is a fun thread. I do miss the "good ole days." Tony
i placed a stop order to buy 1k shares of an $8 stock at a point i believed to be a breakout. the stock was a point away and i didn't think the stop would be triggered. i met a friend for lunch, then came back to the office and sold the stock i had bot at $8 for $13 and change. it was so easy back then. now it's actually hard work.
And who can forget the fiasco called KTEL ? Recall theeir CEO sold all his shares at something like $4.22 just days before it went ballistic. A great long, a better short, and a complete joke of a company.
I had to look back in Quicken to find this trade. I bought 7 YHOO Dec 250 call options after they reported they were going into the s & p 500. I paid $3.75 per contract. I bought them on 12/1/99. I sold one at $10.50. #2 at $33.00. #3 at $31.00 and the rest at $40.625. All within one week. PRIOR TO EXPIRATION THEY SOLD FOR OVER $100 per contract. Unbelievable. This was by far my best trade ever. Here is another one. I tried to short BAMM on 11/27/98. It was around $21 per share after running up from $7 the previous 2 days. There were no shares around to short. So I smelled a squeeze and immediately bought 1500 shares at 22.75. Right after I bought the squeeze started. I ended up selling the 1500 shares at 35.1875 within an hour or two. And I tried to short!!!!! Those were the days. And I didn't have a clue as to what I was doing. Here was one of my bad trades. Remember I didn't have a clue. But you could print money. I bought 200 shares of YHOO at $240. 25 minutes later sold them at $230 for a $10 loss. I then shorted 200 shares at $231. Covered at $241 an hour later. Down $4k. Oh, those were the days. Now I watch GE and it will stay in a range of 15 cents for hours.......oh well. Kev