Page 125

Called the MFF hotline. They feel crash was caused by program trading. They feel stocks will be up 35% in a year.

So I should use leverage to buy like crazy. But not options since they are just 3 months. I should use margin to buy with. So I call Schwab to buy 300 share @ $38.

Called Kate Russell to see what I need to do to use 144 stock as collateral.

She says to call broker + see what they need.

So call them back.

Need to call back after 11:00 AM and talk with Anna after market closes early today.

11:00 Went to get cash advance, buy cold coin, and come home. Put away ML VISA card.

Call Anna about 144 stock and she says none can be leveraged after just 2 years, and advised calling tranfer agent, which I did, and they said Microsoft would have to ok lifting the Restriction Legend, which Kate said, this morning, they don't do till 3 years.

So I call Cable, House, Regan and they said they would do it after 2 year, so I call back Anna at Schwab, and she says its a Schwab policy not to do it. Ah...

Make + eat Lunch.

Dow closed down 150, MS at 39.

1:15 Look at Hulbert to see how good Market Logic's Long Term Timing Record was, but no data.

And look over WSJ again - erie similarites on DOW CHARTS in the 29's. Hard to detemrine how much similarities in fundamentals.

2:00 Mail comes. Read flash alerts:

Market Logic: Projecting 35% rise in next year.

Mutual Fund Investing: 50% cash/50% stock

Skousen Forecast: Sell all stocks

So it's a draw, as always. For every buyer a seller.

2:45 Try calling Anna to see about depositing shares in order to sell em, but she's not in the office, and I realize that

1) I don't like to sell at the bottom

2) As Skousen points out, it may be unwise to let Broker hold stock certif now.

So forget that. COFFEE

Also try York Harris to see about margin using Rule 144 stock, but then realize Microsoft's P/E is 30 NOW, so its not real cheap. And it's contradictory to my holding Muni Bonds in same account.