Dear Scott,
I agree with your statement that networkers, as a group, look good, and
despite a significant correction in hi-techs, this is probably the one area that suffered
least of all, if at all.
In regards to the concepts of overbought and oversold: I think that you're
making a fundamental assumption, rather than a careful consideration
of the chart. Yes, there are stocks like NSCP, ASND, C-Cube, etc. that
did have runs which are blown out of proportion to reality, because
the mentality of the "investors" is "I'd better join the crowd, otherwise
I'll miss the train", plus all the SuperHighway Internet hooplah just added
wood to the fire.
But CSCC ran 30 points within the last 10 days, and its chart
looks very tired, while the volume on this advance was less than convincing.
You don't have to be a rocket scientist in technical analysis to understand
that you are playing with fire, although there are plenty of people
who bet heavily that the market will be at 6000 within 3 weeks
with leadership such as CSCO, STRM, CSCC, lasting forever. I would
hate to see some of them, or most of them dissappointed. Good luck
with your belief in CSCC. I hope it will deliver for you. I personally
would be a buyer on pullbacks to 93-94, and there's a pretty good chance
that we will see this price, shortly.
--Magnifique |
