Electric,
I have seen many short DELL and lose, so I conclude it is dangerous to short such a story stock.
However, on the other hand, what will kill DELL and other story stock will be the same that will kill the whole market, which is a BEAR MARKET.
Of course I am not positive of a BEAR MARKET, which many classify as a correction of greater than 15%, but day by day there are more technical signs that such is a possibility. The key to a possible BEAR market is whether 8570 holds, and if it does not we could see the high 7000's which would be around a 15% decline. In a BEAR market all will be effected and if it gets that bad the money could very quickly move out of the story stocks. They will probably hold up better than a small cap stock, but just a tiny bit better.
Lets put it this way, the downside risk is much greater than the upside reward.
Right now the the futures are down 4.2. Not a great sign that there will be follow-thru for the market. I would not short DELL on a principal that I normally dont short momentum stocks, but all the technical indicators show bearish for DELL.
Sorry to dissappoint, I could be totally wrong - just trying to help.
Seeya |
