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Strategies & Market Trends : The New Economy and its Winners

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To: Bill Harmond who wrote (7602)	6/14/2001 1:45:38 PM
From: Libbyt	Read Replies (1) of 57684

Interesting post... If you haven't read this Cool Post of the Day, it is IMO worth reading. Message 15933397 From part of the post: "I see short covering as the ingredient that prevents the retest of new lows and the tax rebate and rate cuts(of which the first one is today 6 months old). If this old market is to discount the easing of money and it takes 12 months for it to work thru the economy - this warnings period may well be the last weakness into which historically high level of shorts can be unwound. I think many know this and are getting nervous about the recovery time clock running out - especially when Joe 6 pack gets his $600 check.It won't last a week and it will be spent.Let's see 300 or 600 times 96 million refunds and it gets spent immediately - pretty good boost in the arm. I'm way long here and absolutely patient enough to wait for the short squeeze that will surely happen in the next 60 days to 120 days. If the shorts are so greedy they're waiting for the old lows they'll get crushed at the door when Oracle or Mr Softee kicks this psychology one 180 degree turn. If companies just hit the lower limits this quarter then next quarter they only have to repeat the guidance, but with a growing backlog or better visibility and it will be too late to get value positions in core holding kind of stocks. I think the small caps are fixin to be explosive in the next 2 Qtrs at the longest.JMHO ....Shakes in the A.M. and recoveries in the P.M. are signs of this buying action and we've seen them the last 2 days." And a response to the post: "I agree with your assessment...it's much like the inverse of last year's peaks. Longs couldn't fathom we were going down. Now shorts and sidelined cash have trouble believing we're going up." Some interesting thoughts...and a different view than many seem to have.

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