Replies to post #7825 on Loss to Profit, let's make your lost money back !

[IPRE-Paramount]

I have no idea.


The reason I need Good DD's :

[IPRE-Paramount]

The response : read in here :

an excerp
'October 10, 2008


ACTIONS

SHORTS AND HEDGES
UltraShort Consumer Services ProShares (SCC) -- Sell 50% of position
UltraShort Financials ProShares (SKF) -- Sell 50% of position
UltraShort Russell2000 ProShares (TWM) -- Sell 50% of position
UltraShort Semiconductors ProShares (SSG) -- Sell 50% of position


CALL TO ACTION

Dear WaveRiders,

It's amazing how many regular folks interviewed on television say they aren't following the negative news, and go on to confess that they don't even open up their brokerage statements or updates on their 401(k)s and other retirement plans.

That's exactly the wrong way for any investor to handle the biggest financial crisis since the Great Depression. Right now, you need to be in action mode, because the moves you make in the next 10 to 20 days could set you up for life.

We're experiencing the mother of all market crashes, and that's something you can't wish away. Forget about valuations -- what we're seeing is forced margin call and voluntary mutual fund redemptions at unimaginable levels. Right now there is no telling how far down this meltdown could take the major indices.

A vicious cycle of deleveraging, asset collapses, margin calls and cascading drops in asset prices well below fundamentals is now under way. Fear levels measured by the CBOE Volatility Index (VIX) are at historic highs by an order of magnitude. That level of fear, and investors only three mouse clicks away from stress relief, is a recipe for market disaster.


STEADY STRATEGY

Unfortunately, we're only in the early stages of this crash. A historic tsunami of stock redemptions and forced liquidations is hitting the market. If we play this right, however, there is the opportunity to make historic profits.

Unlike 1987, where the U.S. markets crashed on failed portfolio insurance schemes (long stocks and short stock futures), this crash is a redemption crash of hedge funds and mutual funds. Hedge fund redemptions are liquidations -- margin liquidation. This is forced selling. And unlike 1987, the stock market does not have many market makers to put their money at risk on these sell-offs. Ninety percent of stocks are being traded electronically without a human middleman.

How long will this market meltdown last? Here are the only numbers we should care about today:

In 1987, hedge funds had $100 billion, or so, and mutual funds less than $1 trillion in stock funds. Before the crash started last week, hedge funds had $2 trillion and mutual funds $5.6 trillion in stock funds. That is 20 times more hedge fund money and five times more mutual fund money.

How much will people sell? We have no idea, but the trend so far appears as if it could easily reach $1 trillion in the next few weeks.

Shareholders took $43.3 billion from stock funds and $8.8 billion from bond funds in the week ended Oct. 8, according to data compiled by TrimTabs Investment Research. The exodus followed $72.3 billion of outflows in September, the most in a single month. Investors deposited $185.5 billion into bank accounts last month through Sept. 22, TrimTabs reported, citing U.S. Federal Reserve data.

The global recession will take world GDP growth under 2% to 3%, and a G8 global recession will cut 3% to 4% off the developed world GDP. That contraction has to be priced into stocks, i.e., $70 a share in earnings on the S&P 500 (SPX) versus $94 now estimated by Wall Street.

It's only when we get earnings in-line with reality, a better handle on who exactly owes who in the $50 trillion credit default swaps still outstanding and some significant relief in credit market costs, that it will be truly safe to go long stocks again.

When the vast majority of investors are in shock and vowing never to buy a stock again, that's the point at which we'll be ready for action and in position to make a killing.


CAPTURE PROFITS IN SHORT ETFS: SELL UP TO 50% OF POSITIONS

Earlier this year, we protected a good amount of our growth capital by selling several stocks in January and capturing profits. In other cases, we sold just to preserve capital despite losses. Most importantly, however, we added the short ETFs to our portfolio to hedge the remaining capital.

On Sept. 5, we issued a ChangeWave Investing Alert in which we said: "We think the probability is high that the major indexes will break through major support levels, so this week's market sell-off is only just the start of a sharp downleg."

It was our Alliance research on the degrading economic outlook that was the key motivating factor there.

On that basis, we recommended buying three short ETFs (later followed by a fourth), and these plays have been our sole Fresh Money recommendations since that time. As hedges (leveraged two times) against the stock market's downward tide, the UltraShort Consumer Services ProShares (SCC), UltraShort Financials ProShares (SKF), UltraShort Russell2000 ProShares (TWM) and UltraShort Semiconductors ProShares (SSG) are working beautifully for us with average gains of 75%.

With the market falling so hard so fast, we face the real potential of a humongous bear market rally that could be triggered at any time. Now that we're heading into the weekend, there is a good chance that the G8 will pull out every trick in the book to reverse the course of this out-of-control crisis. '



The reason I need Good DD's :

[IPRE-Paramount]

let us push AAPL back :) ?


The reason I need Good DD's :