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-OT- Many of you know how dangerous and overpriced I've believed most internet stocks to be. Imagine the surprise when I looked at my account at the end of trading and discovered a mid-morning buy of EBAY. PE reasonable in the $80s down from $230? Well no, not exactly, as it was still 230 X ' OO est. Hmm, technical action superb? Not in the classic sense. Then why? Boredom relief? that is guaranteed! Seriously, it just seemed like something this morning spoke of psychological washout. Unrelenting and unrepentant selling on stocks that have been pegged in the oversold region for some time. One of those "ah, hah, have seen this before, and it marked a potential buying opportunity in the past", at least for the short term. [internet index was above Thu. lows during the worst of today]. Most of the day EBAY was hanging on the plus side, and well above last Thu. lows despite a minus 75 NASDAQ. [excuse was positive analyst meeting, which is of no interest to me]. Stochastic gave a buy several days ago, and is in an uptrend. I like EBAYs concept. Let America buy junk from each other with a few keystrokes, and take a small cut. No inventory. Not a low risk trade, even below $85, and stops always a good idea. Now we will see if SFE can show a similar pattern and come out with at least a stochastic buy that "takes". In general for many of the beaten down stocks, better times may be immediately forthcoming, though for how long is dependent on how they act in the proposed rally. Looking at SFEs main NAV drivers, SCAI, TLAB, CATP, ICGE around mid day was not comforting. SCAI was $34, down from the $50s, TLAB tumbling, ICGE off, and CATP on long term life support. Looked a little better by the end of the day. Mike |
