It all goes with how fast information is distributed. The correct valuation of a company can happen in one day once the news is out, heck it can happen in After Hours trading. We should thank the market gods everyone who see the information, does get it right away, or act on it.
Back to your 40% drop in the naz call. I was expecting a drop after the first two weeks or January which I thought would be strong. For me now, it's earnings, we had YHOO, ARBA tonight, two very important companies. YHOO the B2C and portal company, representing the last two years of the net, and the other, ARBA, the B2B poster child and representing the net this year. (Barrons has already trash the B2B incubators so the sector is walking on egg shells) How the market reacts to those two companies tomorrow, will be one of the tells I will be looking for. The other will be INTC, which represents the old high-tech market. If the above three companies fail to calm the market nerves, your correction in the naz will look like a possible scenario, but 40% seems too steep. IMHO. How about giving us a time frame before we recover? Three months or Four, should do it in my mind.
Not enough despair yet,
Greg |
