Good answers, Jason. One would thing that the natural course of events would be to sell off the dogs and hold the gems. But each time we see one of these forced or contrived selloffs, there is an opposite effect. . . the dogs hold and the gems sell off sharply. And yes, it does present buy ops, but at what price?
We could have bought PMC Sierra this morning at $62. Now it is at $72. Could have bought NEWP this morning at $80 and sold at $90. Look around. Many bargains from this morning are making substantial gains now. Look at CORV, LPTH, NTAP, CIEN, NOK, JDSU, MCOM, EMLX, HGSI. . . you guys know the names of those that tend to move the fastest. . . . However. . . the burst northward from the lows is done for today, IMO. . . . and if today is the 3rd day of a Margin Liquidation squeeze. . .it will be these higher fliers which get nipped the hardest. I'm looking to reduce exposure and even short some high-fliers, while bargain hunting those that are just along for the ride. . . [not getting squeezed] . . . Wireless equipment makers looking great today.
Rande Is |
