i agree velo...
i know what is going on behind the scenes...but wall street loves to play games...
mer's rule change was absolutely a joke...very comparable to microsoft's concession...
i am not a msft buyer...i like smaller stocks...
but there are lots of funds out there who are buyers and their reasons are sure msft has a loss from investments...everyone who invested over the last 1-2 yrs has a loss on their investment...the assumption is that those charges will decrease while revenues are increasing so 1, 2, 3q's from now eps will increase too...
add in decreasing energy costs...etc...and the potential is there...
doesn't mean that things can't turn the other way with debt levels so out of control...retail sales and home stats will be interesting to watch to gauge the consumer...
but as mish5k pointed out, psychology runs the market, and if the perception is that things are improving, even it is q4-q1 instead of q3-q4 then people will take it...
it is very interesting to watch how delicate the recovery is in the psychological plan. second half is almost dead so we discounted that, now we are pricing in q4-q1, if that goes do we sell back to 1950, or go lower, if so how much?? 1850 or a retest...
that would probably depend on if the recovery is q1-q2 02, or q2 02 and beyond...
time will tell...i'll be trading both ways as that is the only way to make money right now. |
