What we saw today was classic market action. Those stocks that have held well (APPL, JNPR, RBAK, INTC), and had good earnings (CSCO), or were beaten down too far and got a catalyst (AOL), rose. Those that jumped the gun and have already had their run from being over sold (EBAY, GNET, AMZN) move little to none. The best stocks to buy after a down turn like we just had, are the ones that held their ground, it shows they are being held by strong hands. It goes against human nature to buy those those stocks that are already high, but there is a reason for them to be holding strong, and reason for the likes of EBAY to be held back. The real test for EBAY will be how it moves if the econ. numbers are OK. If the numbers are not good, all that has happen in this little recovery, will be forgotten, and the downward march will resume. If they numbers are good, and EBAY doesn't move much on high vol. then EBAY, the stock, will need to consolidate more and EBAY the company will needs to prove to the investment community that have gotten their problems under control.
As twisted as it may seem, EBAY's problems are actually an opportunity to pick up shares in company that has growing pains. I feel is worth the risk to place a bet on EBAY getting it together.
Greg |
