WorldCom was easily understood
they have big revenues from longdist, declining prices
they overgrew in last 3-4 years
Oracle makes sense to me
of the 4 NazGenerals: INTC,MSFT,CSCO,ORCL...
only Oracle had yet to come down enough
downgrade allows for mutual fund rebalancing
this whole mutual fund selling was about rebalancing
the FibOpts had not come down
so funds found themselves overweighted in JDSU,NT,GLW,CIEN,etc
we might now be prepared for another leg on the bullrun
as for the minor downgrades, who knows?
I only pay attention to majors, largecap techs
nobody downgraded JDSU,SDLI,CIEN,GLW,EXTR,JNPR
I was surprised to see a bold upgrade of BRCD yday
I was surprised to see NO downgrade of JNPR yday
WorldCom is a big customer of Juniper's
we have completed a full cycle rotation of corrections
it started with the tech cyclicals: PC, cellphone, semis
once the bastard Houses are done, then we rally
the rotation may have ended with Fibopt and Storage last week
but I think this upcycle will last only until January
then I expect some serious pain
the onliest thing to prevent pain IMO is a Fed rate cut
those crustified Soviet-style economic planners are clueless
they might be waiting for the election to conclude
I forgot your main question
OldEcon devotees might possibly be blocking migration from OldEcon to NewEcon
you might be right on here
perhaps they just want the Naz run to last longer
one way to regulate that pace is to prevent its rapid rise
let's see if we get another downgrade tomorrow
e.g. NTAP, SEBL, SUNW (nah, not SunMicro)
honestly I dont think they can stop migration of money into Naz again
that is where the growth lies, which is widely known
fwiw/ Jim |
