. . . . . Are Rich Tech Stocks On Your Diet? . . . . .
Sorry, I don't know ISSI, Raj. Yogi, AU is at a good price if you believe we may be heading to war. Who can predict what politicians may do?
We are close enough on the COMPX to be considered a test of the April 17th low near 3225.
The May 24th, 2000 low was mostly around 3150 with a brief spike down to 3050. . .which turned out to be a beautiful V-Bottom. Today, as the Nasdaq ticks lower and lower on no news, it is beginning to remind me of May 24th.
There is a good chance we could see a V-Bottom yet today!! 2:30 - 3:00pm perhaps? Otherwise, we could see a softer bottom later this week. . . . as panic sets in with the inexperienced trader/investors.
Yahoo, MOT and AMGN report tonight. . .which could fuel the rally. . .or just be the "excuse" to rally.
I believe we are close to the market turn so many of us have discussed, hoped and even prayed to see.
Now, if you look back at the very best times to buy stocks over the past few years, for the purpose of holding them long, it was on days just like this one.
October 28th, 1997 . . when the Nasdaq started up from a well established base of 1460.
October 8th, 1998 . . the Nasdaq hit a low of 1358! from a selloff which started 700 points higher on July 20th. This was the start of the Great Internet Bull, which charged straight through to the summer of 1999. . . where we got stuck in a trading range between 2400 and 2900. . .bouncing around like a pinball.
October 18th, 1999. . the mother of all buying days. . .on a V-Bottom set up from Oct. 12th, the Nasdaq hit a low of 2632. . . and didn't stop trending northward for 5 months. . .save a brief pause which dipped to a low on January 31st. . .then started the massive February 2000 rally. . . which was the sharpest sustained rally in Nasdaq history. . ..ending at 5130! on March 10th.
NOTE: I cannot mention that date without reminding everyone that we on the HOME thread were "officially sold out of all tech stocks" for the summer, by the 7th of March, 2000.
And here we are once again setting new lows in mid-October. Which October day in 2000 will be remembered for its lows?
I don't know about you guys. But I just love the opportunities the markets present us this time of year. Last year about this time, I was trying to find bulls, but they were so tired of running in circles all summer that they completely missed the important move up. . and had to buy back their favorites at higher prices later.
The past few weeks I've been gathering up the bargains, just as I know most of you have. Just as we gather wood for the winter. Just as we scarf up the bargains at the antique store. Just as we run to Bloomies the day after Thanksgiving. Its all the same.
Free Advice . . .[you get what you pay for?]
Be very sure of your moves this week. This is not the time to be wishy washy, nervous, afraid or impatient. But rather it is the time to be decisive, certain, courageous and relaxed in your trading. Make good, wise and prudent decisions.
>g<
There is a feast of bargain stocks out there. Do not be a hog. But select your portions in accordance to your risk tolerance. . . your diet, if you will. Make sure you get some variety. Get plenty of greens. Eat your PEs. Cut away the fatty pig. Chew slowly. Don't spread too much margin on your bread. Be careful not to place too many of your rich meat stocks under a sea of speculative gravy.
Now you'll want to make regular movements without obstruction or liquidation so be sure to get plenty of fibre. And don't get hung up on any one stock for too long. We all know where they end up eventually.
Rande Is |
