<<Considering market melt down it is not significant.>>
Mixed bag as far as I can see. Yes, market meltdown is a factor, but many stocks that have had 'some' good news were able to buck the trend, even if they are not beloved 'darlings'. Example: COMS. I saw the Nokia/COMS item in the paper yesterday, and decided to play it long today despite the rotten market - I was not dissappointed. Doesn't seem NITE earnings/cc call were seen in equally bullish mode, otherwise you'd be able to hold the gains of the morning.
In fact, enthusiasm, such as it was, came mostly from retail, as far as I could see. Institutional money was dumping - or at least most of the big blocks were sells, and they kept the pressure on NITE. I was also interested to see that the volume was not exactly impressive given the occassion. Any way you cut it, it certainly was not a love fest. The tactic - "short every rally in NITE" - is becoming something of a law of nature it seems - amazing considering NITE is now 70% off it's high; one day this game has just GOT to come to an end, but NITE seems to always be curious about what's behind the next door... today it was door #25. This has been about the easiest short over such a long period of time, that I have ever been involved in as a trader.
Bottom line: this is a very, very long and hard road up for NITE. If you have the patience of a saint, you may do OK. Consider that there will be a mother of all tax-selling on this baby all the way through this year. Institutions do it mostly in October, and many individuals will do it in November to qualify for the wash rule should they wish to pick it up again cheap when the second wave of selling will take place in late December.
Morgan |
