*OT* Hi Dennis- Some backup was to be expected this morning in Dell...after the pounding it took for many weeks, it made sense that some folks would sell off after the quick surge up (at the peak this morning, it was up 10% in one day and a quarter trading)..and I'm sure that a lot of folks shorted today as well...
I expect tomorrow will be a down day for Dell..could be as much as $2 (I'm sorry to say)...Don't know, though, if it will get back to 33 (I believe that is where the 200 DMA is)...Barring Compaq or Intel warning next week, the odds of which I put pretty slim...I don't see Dell getting back to 33...You may get some help with another analyst coming out (during the quiet period) and issuing warnings...this seems to be a favorite trick of late...sure to drive a stock lower..
By 2nd week of April (latest) I would close the short if I were you....Earnings are bound to be a bit better than expected....Dell has its analyst meeting in NY 2nd week in April, and I would be surprised if good news and buying did not come out of that....Also, Compaq has a couple propaganda events (annual meeting & another big customer meeting)...Good shine is sure to come out of those events...
IMO, Pentium sales have not been great, but they are not bad as the bears would have us believe. Ditto on the quarter's sales. Dell has the extra luxury of reporting February-April, so January's weakness will not be included in their results. The fear game is coming to an end, now the real result are coming....I think, though, you probably can make some money over the next few days..Good luck...hope we both win... |
