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.