The Ugly Stick
L,
<< Dreams of target prices of $50+ ......feels more like the stock isgoing to be driven doento the $20s. >>
Take heart. It isn't just QCOM getting spanked and it isn't just us getting hit with that ugly stick and one of my favorite RealMoney contributors commented yesterday after the bell. Below are a few clips from his comments with an apropos title but the full text may be publicly available at the enclosed link ...
>> Nasdaq Hit With Ugly Stick
Cody Willard
RealMoney
7/5/2006
tinyurl.com
It was, simply put, ugly out there again today. And it was especially ugly in tech. Tech got hit from all sides today. Semi stock Atheros (ATHR:Nasdaq) got hit for nearly 15% today on a couple "tweaks" (and downgrades) from the sell side. Anything cell-phone-related got spanked too; for example, Brightpoint (CELL) and Qualcomm (QCOM) were down 5% and 3%, respectively. And don't forget Marvell (MRVL) joining the chorus of option-scandal allegations, which hit the stock for about 8% today. And small-caps like Emcore (EMKR) got hit for 11%, though at least part of that smacking is directly attributable to the unwinding of the window-dressing that popped the stock 5% Friday. ... There were a lot of nasty declines out there in a lot of individual stocks. The 2% decline in the Nasdaq today, coming on top of last Thursday's euphoric 3% rally, continues the trend of rolling dislocations, which I've been defining as intraday moves of more than 2% or so. ... The good news is that dislocations aren't as bad on a system as outright breaks <snip> and the markets haven't broken down out of their recent trading range. The TA folk will tell you that's better than the alternative of an outright break. But, gun to head, I sure can envision another whoosh down out there looming to break the charts down and shake out more weak-handed bulls. That would probably be the bullish break. We'll see, but I remain of the mind that I want to be mostly in cash for now. <snip> <<
Sit tight and wait for that "bullish Break."
- Eric - |
