Rajiv,
I closed approximately 50% of my short positions last week,
including several on the opening Thursday morning. While
I continue to believe that most of them are destined for
penny stock status, some examples being TMRT, CCSI, BIGG, HITT,
XDSL, there was no sense in ignoring the oncoming train.
In a market that couldn't care less about such boring historical
valuation criteria as revenues and earnings, the words
"neutral-bias" were greeted with the enthusiam one might
expect for the announcement of a cure for old age. It's
only been a couple of weeks since many internet stocks were
chasing each other down to more reasonable levels, and here
we are again with many making new highs. Now the consensus
seems to have turned full circle, and many seem to agree
that we will have a strong summer rally. Personally I am more
inclined to think that conditions this year are much different
than last year, with so many secondary and new issues continuing
to supply paper. There may be a few more days of strong upward
bias, but I am watching carefully for this
rally to fade, and will be re-establishing short positions in the
weakest of weak companies.
Thanks for your consistently excellent posts. |
