T2,
We had 3 failed rally attempts today. Do you think this patient is going to sprint after heart surgery? Instititions are SELLING into rallies, my friend. People are puking up stocks because of margin calls, and to protect their gains.
I sold BRCM and AMCC on tuesday because they are high PE stocks and rightly or wrongly, they are in the crosshairs. I didn't want to do it, but look where they are NOW.
30% below where I sold them!!
I don't like this either, but some of these stocks (not specifically JDSU) are NEVER going back to where they've just come from.
JDSU is a powerhouse, but the large gains for many are sometimes too tempting to NOT take. Even with the allure of $$$ in a few years and all the wonderful rhetoric about FO. Sometimes, reason doesn't matter and you just want out and your cash.
With rates continuing to rise, and no catalysts on the horizon (or earnings catalysts not appearing to be working very positively, even for good earnings), it's going to VERY HARD to maintain positive tech momentum as you suggest.
As well, we go into a typically lethargic tech period from April to October.
If you have some positive catalysts that will turn this, I'd love to hear them. We're NOT undervalued until the money stays in the tech market at the end of the day, wanting more returns the next day.
Haven't seen that all week, nor much of last.
Steve |
