More rate cuts are expected. With almost no inflation the Fed will be at liberty to cut and keep cutting. This and tax cuts will fuel the economy. I don't believe we'll test the lows again but just keep going up one step at a time, re-tracing 50% or so every time we move up. Part of the reason is just pschological. Investors are now getting used to for instance SUNW at 30 instead of 60 and so it will take awhile for them to get used to 40 and so on. But the value is there, all the bad news and earnings slow-downs are priced into everything tech and there is plenty of upside. I'll be buying into every double-dip, then selling into every double-pop. For instance buy SUNW at 28, sell at 33, then buy at 30 sell at 35, etc. What do you guys think? Remember, all these tech stocks are now at recent historical lows, including PE's, market caps vs book value, etc. Many stocks re well under book and even under the amount of cash in the bank in some dot.com cases.
We do however need fairly decent earnings reports and not disasterous ones particularly from YHOO, INTC, CSCO and IBM.
If there's a sell-off Monday I'll be buying into it. I had lowball buy orders in all day today but none of them filled. Maybe Monday. Fear is a bottom-feeder's friend. And remember, shorts have just as much or mor reason to be afraid these days. Afterall they're playing with fire shorting near the bottom. |
