Fearless prediction for tomorrow: Bulls and Bears in tug-of-war. Bears start winning again (doom and gloom types are interviwed, repeat of same bad tidings, yawn), then Bulls finally get in a groin-kick and turn the tide. Abby Joseph Cohen or someone is interviewed. Somebody big starts buying select big techs to start mass bargain-hunting, which becomes a frenzy, shorts start covering desperately, then weak hands sell off some, then up some, down some then end the day mixed or up a little. And at the end of the day rational analysts state the obvious, that it was profit-taking, that the fed hike is more than priced in, that value is a good idea and that the internet digital revolution is still the story of the day. So cylicals go up but so does AOL.
Next on deck, great retail numbers, huge computer and software boom after Y2K, discussion of excellent earnings, new liquidity starts pouring in, some IPO's are delayed, others survive, and little by little (by next week probably) today is forgotten. The hot stocks will all be back in time.
So what to do IMHO? Go where no man dares. Buy low when no one wants them. Hold your good ones with gritted teeth. Use a few stops if you're paranoid. Buy leaps and bound. Take a few profits on your iffy ones. Sell something you're sick of looking at. Re-arrange your portfolio a little. Or maybe just shoot your computer and invest in t-bills.
One thing I know, tomorrow will not ressemble today (at least for very long). And Bebe will rise. Abby Cohen where are youuuuuu? |
