No one really knows.
Almost all of the best and well respected analysts guaranteed on national TV that the mean and nasty day and huge reversal on April 4 was a bottom, that would be "retested." Whoops.
One indication that is still bothersome is the lack of fear. The CBOE VIX ratio had a high of 41 on Friday. It is now back to the low 30's. In the mini-crash of 1998 however which obviously was a solid bottom, the VIX spiked at over 60.
For this week, it should be a nice respite though heading into options expiration and a Holiday. A very nice short covering rally on strong earnings numbers should be good too. After earnings, what next? Then the market looks towards the next Fed meeting and how that will impact everything. Fridays aftermath may be looked back on as a between-math in the face of a hostile Fed, then the markets might do the much vaunted retest... or even lower. After all almost no one thought more than a 10-15% correction was in the works just a few weeks ago.
GNET now down 5 points, while the markets are up... I bet no one expected that? Jinxed again maybe, but it is almost comical (or it would be if not long) at when this board gets all worked up like last night after the earnings with no hint of caution or anything, it marks a little short term high! When you have a stock with low float like this subject to manipulation, no amount of rosy reports will make a move up guaranteed or give some measure of safety really. To think that it would be straight up from here with the major damage incurred is wishful thinking. No doubt the earnings report was great. However, it is the market that gives the verdict. The "pro forma" thing may be giving some hesistation. A loss is a loss to many unfortunately, and scrutinized more heavily than before. The issue of coverage is still out there weighing on the stock, a lot more so than a little blue line in the box.
What does your broker tell you about all of this? I hope you have a good one, since you bought 5,000 shares over $60 you can well afford it! |
