Two things on my mind. First, lots of sideline money. Techs oversold. When and where will the sideline money go? I think I can answer the first. Money will go to the oversold....the techs.....the big question is when? How long does the sideline money wait, and how low does naz go, before we start a sustained upward climb?
Second. Short positions. Still very high I assume. Me personally, I will never short a stock. Sure, had I, I would be rich, but I have no desire to be short. However, many others are. When do they cover? Why would a short hold a short position in such an oversold market? Sure, maybe JDSU goes to $20, but since it's off 70% or whatever off it's high, why would one want to be short. Same with naz in general. Are we really heading for naz 2200 or less? If so, I guess it's wise to be short, but for the life of me, I cannot see why people would short such an oversold condition. Are things really that bad, that at 2600 and small change, shorts have a better chance of making a buck then longs ??
Keth |
