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Fri, 13 May 2005
JJC is really hot lately.
used to talk about the margin butchers endlessly both in 2002 during the bad summer days and in 2000, when the first rollover in tech occurred. You could see the pattern every day, where the stocks that were most borrowed against would give up the ghost because the margined clients wouldn't put up the money. Funny, today's the opposite of five years ago, when the Dow would go up and the Nazz down because people had shorted the Old Economy and borrowed money to buy the New Economy. Now it's the opposite! I don't know who is ridiculous and reckless enough to "invest" like this, but I have advice for you, if it is you. Sell now. Sell Monday. Raise the cash. Don't borrow money to margin. We are not in that kind of market. When you see sudden selloffs like we have seen today, sudden, late-afternoon selloffs, that's the margin clerk saying, "Put up, or we'll sell you out from under." And that's just what they did.
Posted 12:45

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