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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.92+0.1%Nov 7 4:00 PM EST

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To: Sultan who wrote (40580)2/18/2000 12:49:00 PM
From: Michael Watkins  Read Replies (1) of 99985
 
Hi Sultan,

I've not checked out the HUMC earnings news so I can't comment on them. I've watched that whole sector explode - I only hope for my consulting business that its reflective of increased sales I may see down the line... but I think its out of proportion with the market opportunity.

Since I scan several thousand stocks nightly I see all the big increases in activity in many small caps. They invariably make excellent shorts within a few days of their activity peak. I guess we will find out in the fullness of time how they fair, but given the run ups, I no longer believe that small caps will be a safe haven in a market correction. They will get corrected as well now.

And when money starts floating back into the system, if the scare was big enough, it would seem unlikely that they will float back into the small caps again, but who knows.

Essentially small companies being bid up to billion dollar valuations - its like a Bre*x in every pot! (Hey, a new campaign slogan for someone).

ediT: I started writing this last night and am just pressing sumbit now...
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