<<As a matter of fact, I will dump my long and go short to recover my loss.>>
(all of the following, of course, IMO)
It is this reaction that will cause a few more bounces, when 'good' news or rumor or the like comes around, and people start buying, and shorts start covering. Corrections are hard to predict, and in the past few months every time period that felt like a correction didn't last too long, and back came the bulls.
For me, in this market environment, and with a growing sector, I'll take the long side. My common sense and fundamental investigation over the past year told me not to buy YHOO, XCIT, DELL, etc. So I sit on my modest gains of 30% and try not to look at my short list of stocks that I considered buying, that would have brought me very satisfying gains.
I'll agree that it seems out of control at times (valuations, etc.), but we're still at the beginning of a technical revolution, and I'm accepting the craziness, pushing aside 'normal' fundamental thinking where I deem appropriate, and hoping to ride the wave. It's far from over.
Good luck & happy investing to both sides.
bobo |
