Zeev:
Yes, I am bearish on the RMBS situation, and that of course is based on fundamentals. No need to reiterate the reasons as both sides of the RMBS situation have been well aired.
While I place more weight in the fundamentals of a stock, I don't ignore the technical aspects, hence at the moment, I am a spectator, and for just the reasons you cite..
I actually hope that the stock gets driven up again as an attempt is made to crank up a summer rally. Personally, I don't think this summer's effort will rival those of the last year or two. Too much insider selling, too much pooled/escrowed stock coming out,not much cash on the sidelines, volumes have shriveled, A/D has been in descent now for two years, Asia heading back into the tank (repatriation pressure probable), SEC pressure to clean up accounting, descending profit levels, early indications that the U.S. consumer is starting to cut back on his manic borrowing, etc. don't bode well for the general market. Time will tell.
Best, Earlie |
