Hi Mike: Pisx was not the only one that had good news,
but went south anyway. I have an index I run of my own on tech
stocks, it went from 914.64 down to 878.75 today. That's a broad
range of stocks in the tech sector, to many to list, but a lot more
losers than winners. A week ago it was down to 865 and on one day
it jumped up to 904.53, I knew then that was more short covering
on that day than anything else. That same index was 1156.72 back
on 1-25-97 thats a 277.97 point drop in my tech index in about
6 weeks.. 24%
There is a lot wrong in general in the tech sector, growth funds
got caught on margin squezzes..some of them are down real bad,
some stuff just had to be sold because of margin calls.
Many of the funds that made high gains last year are down 25%
already this year..I think they need to outlaw letting mutual
funds go on margin..it really wipsaws the market.
Stocks that were not bought on margin are generally the ones that
take a bigger hit early on..as when they sell them they get dollar
for dollar..were if they sell the margined stock..they take a bigger
hit right off the bat, as they have to sell more of it, and at a loss
so fund manangers are not all so bright, many of them are still
wet behind the ears. Look at the funds..so many of them..more funds, than we have stocks..and check out how long some of the mangers have
in service..lots with less than a year, and they all learn from the
same books..it's a mess. If you remember there was a rush not long
ago to buy the S&P index..well if a few people do it , it might
not be so bad..but it was a mad rush..so the money runs to the
index..ha..its comes out of many of the same stocks that support
the index, what a joke. Psix is caught up in all this madness..
who knows when it will settle down, we could test last Julys'
lows before it's over. But it will come back, hope your not caught
in a squeez, the market does that from time to time, glad I didn't
get margined out.
Jim
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