UF,
i always like your rational thinking....
i think the problem with today's market is that it is momentum driven. there are oversold conditions and overbought situations....rarely is there a nice balance in either direction,,,,at least not until the stock reaches maturity....even then,,as you've suggested about csco,,,they can get hammered in the market melt-down.
but qcom is melting,,,most likely due to fear and the fact that it has had a tremendous run-up without a real consolidationg period.
the weak hands are being shaken out and the strong hands will hold....as we know cdma is THE technology....however, the market will have to tell us what the fair value is,,,,and thus,,,we have a market.
the problems have been too many people have invested too much into this stock...i.e.,,,lindy....to have 100% in it is ridiculous. the stock can't go up if every qcom lover have 100% in it,,,who is left to buy???....we need these shakeouts to move higher...to free up cash...THE SAME SELLERS WILL RUSH BACK WITH JUST AS MUCH ENTHUSIASM AS THE DREAD THEY'VE HAD IN SELLING IT.
don't you just love the market psychology? -g-
volatile stocks like qcom will move up or down 20 points in the blink of an eye because it attracts momentum players. gorilla investors should not participate in that game,,,unless they are traders.....
regards,
mike |
