Biotech is the only tech sector that's hot and will be significantly higher in the near term. Speculative plays abound, but heck, if they go higher, why not go with the momentum?
You have to realize that the market has long become a momo's favorite and if you don't do momo trading, you don't get returns.
Momo will eventually kill great companies, like DELL, AOL, QCOM, to name a few. QCOM needs to pay for what it did in 99 and will be a market underperformer the whole year. MSFT, thanks to the relentless screwing from the government and losers (or to say, its enemies), is slowing down and will be a market performer this year. Nuts are maturing and no way can you get a 30-50% swing in days. Biotech, that's where is the $$$ is pouring into. ALthough I have huge doubt about a majority of its leaders, I do agree with a trader who said that when the ugly faces of those companies are revealed, Hot $$$ are already made. You just don't want to be the ones left holding the trash bags. So far, I see no reason for the sector to cool down in the near future. It will get even crazier than the nuts years ago from here.
good luck,
larry! |
