Stock Attack II - A Complete Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: StockOperator who wrote (1537)	3/1/2001 12:20:44 AM
From: StockOperator	Read Replies (4) of 52237

Well here we are. I have been saying for months now that prices would get down to levels that would be unbelievable. Look around and what do you see? The scary thing is I don't believe it's over. I just finished looking at half my charts, only half, and what I've found so far is one stock after another confirming that the capitulation phase hasn't arrived yet. No one is scared yet. Of course we managed to get to 34 on the VIX last week. Considering the damage seen we should have seen a spike into the 50-60 range. We are talking about a meltdown in prices of the magnitude seldom seen in ones lifetime. Across the board. Now place this damage into the context of a Dow Industrials that has just begun to breakdown. Now you want to hear something crazy? GE is at the fork in the road. Come on I know that's not a stretch considering the multiple. But what about GM. It has a PE under 9. They wouldn't sell this stock off. Or would they. What about Coke or Mickey D's. I got to wondering the same thing after considering the recent move in the DOW. Now I have to admit that I don't follow the stocks in this index. I am no different than anyone else, the Naz with all its volatility and all its appeal, it grabs you and you tend to forget about everything else. But as a technician, who is admittedly very weak when it comes to the fundamentals, I look out and try to make sense of the DOWs recent downturn, especially after all the damage already seen in the NAZ. What does it mean? I don't know exactly but I can surely guess. Hold on a second let's get back to some of those charts. Tech stocks are still in a downward trend. Today both AMZN and LU hit new lows. You will pay close to $10.00 for either one of them. And yet their trends are down. Dennis today finds somewhere on the net (I'm assuming - I know not good) a publisized posting that someone is taking a rather large and favorable long position for both SUNW and CSCO. Come on what do they want us to do, get excited. Why don't they just place an ad in the NY times. Perhaps we can get a direct line right to Soros. The problem with WS is you never know who you're friends are. Finding your enemies would be a lot easier if everyone wasn't smiling or patting you on your back. Stocks are hitting new lows but what do we hear "step up start to nibble here." We've been hearing that for two months running all from the same people. I can almost guarantee you that the real time to buy will be when most of these gurus are either gone or perhaps singing a different tune regarding the inherent dangers in the market. Like I said we're not there yet. Let me sum up if I can what MAY be unfolding. First of all GM with a PE under 9 has a chart pattern that tells me the stock could be under significant pressure in the Month of March (same thing for GE). This fits nicely with my view that this tech wreck would spiral down hard with what looks like now as stock prices heading into the abyss. Possibly a major selling frenzy where investors in all securities start running for the door. An irrational push away from equities in all categories. Remember the pendulum swings equally in both directions. We are there right now. If we are lucky prices will firm and hold their ground. We are going to need an awfully strong catalyst to overturn the forces that have been pushing prices lower. Today's close is my first clue that those forces will have their way and send prices to even lower levels. I hope I'm wrong. Trust me (really <g>) if I see things shaping up differently I'll be the first one to point them out. Good trading. SO

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next