I nominate you as the #1 bull on SI. Can you get the fund managers to start buying?
I looked at the cash positions for all of my mutual funds over the holiday. Many of them had 12-14% or higher cash. When this tech wreck finally turns around, that cash - coupled with short covering, should make things very interesting.
I agree with everything about short covering, high cash levels and now I would add the weak economic numbers to that list. When the FED starts easing, the stocks will be going up, IMHO. I think they will go up ahead of the FED action as this will be discounted by the market a little earlier.
There is no doubt (to me)that Fidelity, which has sold tech positions in the 3rd quarter, is probably loading up now.
I am not the number 1 bull. If I was, I would have been loading up on JDSU, BRCM, PMCS and other high PE stocks. I have been selective in buying lower PE tech stocks (which by the way are also getting hit!)
However, if PMCS, JDSU, GLW, AMCC stop dropping and making a move higher, you can bet that the Nasdaq itself will be roaring. People know from past experience that the best time to buy your stocks is just before the rate cutting. I think we could get a STAMPEDE in the Nasdaq for this reason...at least I think so. |
