Harry,
While I'm certainly not suggesting a "vast" conspiracy, I am
suggesting that the markets are basically a rigged system that trade
to a large extent on insider information and phony news totally
unrelated to the reality of our economy as a whole or the economy of
an individual stock or group of stocks. Do you really believe the
Hong Kong markets should have such an impact on our market? Or was
this the "excuse" needed to have a market correction, well coordinated
I might add. I don't disagree that many stocks were indeed overvalued
and in need of correcting, but the trading public would not have
induced these downside moves by themselves, they had to have started
by large block selling (and shorting) by someone other than the
"mom and pop" investor. To say that stocks trading up in "anticipation" of good news is "coincidence" is being totally naive
which I don't really think you are. How could anyone know days in
advance that good news is forthcoming only to sell off upon the
release of that news or shortly thereafter. The same thing happens
when bad news occurs with stocks often rebounding shortly after the
decline that occured before the news was released. In these instances
there is often large block accumulation occuring as investors sell
into the bad news, which then allows those accumulating to sell at
much higher prices in the future. Much of this occurs, IMO, on
insider information. Such is the nature of the beast. Do I think
this is such a bad thing... no I don't because one can trade on the
same side as the insiders just as easily as not, all you have to do
is follow carefully price and volume changes along with some good
fundamental analysis of the company. In the case of SUNW, do you
really believe its valuations should be so low? When specialists feel
as though they have enough stock in their inventories I guarantee you
will see a rally in the stock even though absolutely NOTHING has
changed fundamentally with the company or the economy on a micro or
macro level. BTW, I am long SUNW and as a long term investor I see
a very bright future for the originator of JAVA, regardless of what
some analyst might say as he attempts to manipulate the price of the
stock!!!
Bob |
