John you are right. We will be selling a portion by this Friday, and the rest by next week.. I do expect some new buying for next Monday, the 24th, but these stocks might be fairly new earnings plays and not the stocks that these particular mutual funds are holding.
SCMR is one that is looking toppy, and it gave some great gains this month. I don't expect ORBK, CMVT and MRVC to last through next week.. NEWP looks like expectations might lead to higher gains at the beginning of the week but I doubt it can hold up through the actual earnings day on Thursday. However there are new earnings plays that are perking up. IMNX, VRTX, DNA, GENZ, MLNM might cause the biotechs to bounce back as early as Monday. VIAN, IONA, WGRD might continue to make gains. IREG is only a small stock but it could be a precursor to similar depressed stocks that will come out of their stagnancy.
There are also a half dozen communications and software stocks that are beginning to come out of hibernation. In the internet sector, every day until the end of the week will have leading internet stocks scheduled to report and its hard to believe they will all sell off.
Remember SCNT did so well simply because it has earnings that are now growing in the triple digits. I expect GNET to give us some additional gains, even as stocks like CMGI, EPNY and YHOO sell off. In essence I see the next two weeks as a market of single "stocks" that might be going in opposite direction than the general market trend.
I would focus on the market on a 'stock by stock basis' and not on entire sectors or mutuals funds. It is not the time to hold any mutual funds which can dilute gains because the various stocks held might be the ones that head down. And at the very worst, mutual funds compound losses by focussing stocks that have already peaked and might start pulling back. |
