DD, Shorts are scrambling...
I am not sure about that. We are a "trading nation" now. Sure there is some short covering. But, the thinking is like this: Ignore fundamentals. Listen to charts. Get in when the going is good. No time to waste. ala. Momentum investors.
The way I look at it is, no need for the smart money to buy KO, G, PG, CAT, Intel, Msft, MOT, Altera and a bunch of other stocks because they haven't corrected to attractive (historical) valuations. Those who got stuffed with easy money by buying dips in the last few months are out in force because they fear that this dip will close pretty soon. They are right in one sense, they are helping this dip to close soon. Soon, I think they will find themselves holding the bag as smart and big money starts unloading again. Just my thoughts.
One more thing. The trading day is still young!
-Mohan |
