Just speaking about the markets in general.
It would be nice to be higher tomorrow but it is a Friday and as nervous as people are I just don't see them holding onto any gains over the weekend, should the market run during the day, they will sell into the close. The NAZ is set to challenge the intraday low seen on 4 April. Tomorrow is a big day indeed.
The big problems:
1. The one I always talk about, seasonality is against us.
2. I know you have seen individual stocks that sell off hard then have a long slow road to get back. Well, the NAZ is just like one of those stocks right now. There is huge overhead supply. The margin junkies are still around. Any move up is a selling opportunity as many try to escape. Those that bought on the 4th of April with margin or without margin will run for cover tomorrow if things look bad. Not only have stocks been purchased on margin, but on credit card advances, home equity lines of credit and so forth. Some times it is not easy to break self reinforcing movements, this one happens to have a downward bias.
3. It looks like the DOW has or is ready to go lower, the financals are throwing in the towel. An acceleration could be in the cards.
4. Crowd psychology and generalized fear has this market by the tail.
5. Every day brings us closer to May and the Fed gets to whoop it up again. We get another 1/4 point added. However, the silver lining may come to be that May could be the last hike. The Fed may even have to start lowering rates before the end of the year.
Having said all that gloomy stuff. On BRCM, those long the stock will do just fine. We will revisit the triple top vic. $240, we will go through it. The downturn is simply setting up a buying opportunity. Thus even if BRCM is put to me at $120 I will accept it with pleasure looking forward to a 100+% return <G>.
Regards, |
