OT ****,
RtS, thanks.
Re will this rally continue ?
I think the answer is mostly in the flow of funds.
1- the dollar is stable, and even seeing a little strength. So there is no reason to expect an automatic sell-off tomorrow. Since the selling that is driven by capital flight should be reduced or eliminated for the moment. And I do mean literally this moment. 10 minutes from now, it could all change.
2- Stock Mutual Fund outflows. Last Friday Maria said that $20 B went out of stock funds. Prev week it was -$12B, before that -$10B, etc... for 12 consecutive weeks. I don't know if is the kind of trend that can turn on a dime. I suspect it will abate gradually, then reverse to the up side (fund in-flows).
So in conclusion, I think there will be some profit taking, but we will retain much of today's gains. At the very least, non-trash companies will keep the gains. Worldcom will be delisted tomorrow, and the disrupted retirements there will not be retrieved.
Good luck to you in your long positions. Especially Altera, since that is one of my main mainstays.
Sarmad |
