Hi Robin,
I believe that I've been ahead of the game. Going with the name of your thread, I'll be buying when there is "BLOOD in the streets." The fact is, there still hasn't been BLOOD in the streets....
There still isn't broad-based BLOOD in the streets, because the carnage in the networkers has still been more company specific--they aren't indiscriminantly selling like they did with the semis. Also, note that CSCO is still above its 200 DMA. But the clearest sign, is our friends here at Silicon Investor---most SI members are still very bullish for "the long term." This sounds just like it did in October 1995--the first leg down in the semis. Until we get to where we were in January 1996, when everyone thought that the sky was falling (comments were made about how "no one will ever buy a computer again," or, "we're going back to the Stone Age!"), I won't see the virtual BLOOD on the streets.
So for me, I've standing aside now. There really aren't any stocks that I'm interested in buying now (except maybe for trades)--and there probably won't be until the market goes down. So, I've been spending my time doing other things--it's warm outside, and I'm trying to get back into tennis. I've also be doing a little more partying, and yes, some homework! I haven't been at SI much, because there really isn't anything new for me to add to the viewpoints that I thought I made very clear.
If I had to buy anything, it would be Biotechs. IMO, the Blue Chips are tired, mid-large cap techs have nothing to propell them higher (and lots of reasons to go lower), and the cyclicals are closer to the top than the bottom. That only leaves Biotechs and small-mid caps (high quality names, of course). Since I'm worried about a broad market correction, I'm still not going to buy any Biotechs or small-mid caps yet. But there will come a time....
BTW, I totally believe that we are going to see a broad-based, SUSTAINED rally in the biotechs....After all these years, it's time!
Sal Habash |
