Pete,
Larry's point is that a momentum trader's stock like MU will not follow fundamentals in the extremely short term. Technicals matter, and the short's were scrambling hard at the open. When they scramble, the buyers pile on, and the stock has a violent upmove! The same thing happens when MU get's hit... the large short sell orders follow MU every tick down, until the big boys decide to cover.
We're close to my 50% retracement level, so expect some resistence in the mid 38's. My charts say 42 is the downtrend line which must be broken for the longer term bulls to have a chance, but alot of money can be made trading between here and 42 (if we ever really get there). It's going to be an interesting, choppy ride from here.
Anyone notice the reversal day on MSFT? I don't expect much followthrough on the tech rally, as the market will continue to roll money from sector to sector. Oil stocks were hit today, so look for some strength tomorrow...
Cheers,
Peter Shaw |
