carpedeum2000: Easier said than done.
I've given up trading in and out of stocks -- just another form of gambling and equally unprofitable. There have been so many false starts and headfakes that I have consistently zigged when I should have zagged; the hell with that.
I think most everyone on this thread find the ultrabear/contrarian stance that NASDAQ is headed toward 2100-2200 range highly unlikely and, even if it did, it would bounce off of that level so hard and fast that the average investor would be unable to take advantage of it. Realistically, the "debate" is whether the bottom is 2500-2600 or 2700-2800. Either way, we are near enough to the bottom so that it makes sense to begin accumulating some of the tech bargains rather than waiting for another 10% decline on the NASDAQ. From a LT (1-3 year) perspective, it will not matter all that much.
I DO think it makes sense to diversify more going forward than we have in the past. I think that several sectors (specifically, power and energy, oil & gas, financials, beaten-down retailers) will do as well or better than many tech stocks in 2001.
Tech stocks that I think are worth buying when NASDAQ dips under 2800 are: FLEX, JBL, ADI, TXN, AMAT, PWER, IRF, AMCC,
WAT, and VRTS. Sure, they may get cheaper if NASDAQ does drop below 2600 but, at some point, the NAZ will cross 3000 and will not look back. This may not happen for 2-3 months, but nibbling and starting positions in these stocks with the NASDAQ in the 2700-2800 level will look very good 12-24 months from now. |
