With this amount of negativity, and everyone expecting a huge decline, it is terribly
dangerous to short good companies and real net stocks (CUST is a fraud, not a net
stock). I expect that the market will ramp up bigtime and catch a lot of short-sellers
off guard.
CUST is a *complete* POS. Agreed there. You and I have a better chance of competing in secure transactions if we invested $200 and hired a 14 year old to code for us.
However, where's the negativity with regard to the stock market?
QQQ (Nasdaq 100) is only 6% off of *all time high* with an average P/E of over 80, the last time I checked.
SPY (S&P 500) is only 10% off of *all time high* with an average P/E of over 30, the last time I checked.
DOT.X (thestreet.com internet index) is about 20% off of its all time high but has increased about 40% almost in a straight line since August. Don't even talk about P/E here.
Where's the negativity? Sure, more people are becoming conscious of the valuation concerns (I wonder why?). The index to watch really is QQQ because it's a good mix of "blue chip" high-tech, communication, internet, and biotech stocks. If there were real negativity, it wouldn't only be 6% off of its high with a P/E approaching triple-digits.
Market is still priced for perfection, and then some. Strange, considering Russia may break out into official anarchy (as opposed to unofficially right now -- 99% of Americans don't have the slightest idea how broken down Russia's economy and infrastructure are), China may invade Taiwan any day (and Americans thought the earthquake was disruptive because RAM prices went up), China's economy, government, social, and labor problems are timebombs waiting to explode (again, 99% of Americans don't have the slightest clue about the problems in China), etc. etc. etc.
Bottomline: Market is priced for perfection, and then some. US economy may be close to perfect, but we are in global economy now, as we learned from the Asian contagion recently. QQQ, the most insane of the three major indices (QQQ, SPY, DJIA), is still only 6% from all time high with a P/E pushing triple digits. Just as you thought market breadth couldn't suck anymore, it starts sucking bowling balls through garden hoses. Internet insanity is back as demonstrated today by NSOL and AMZN, among others.
We're headed for a tanking. |
