As of the close I am pretty fully deployed ( i stopped out of few positions but redeployed late in the day in others), I would have waited till tomorrow, but I may not be in in the morning, it could continue straight down, but I that may not last more than 90 minutes or so, as bobby said, we may have a third "exhaustion gap", and the run up might be pretty fast. I do not think that it is the death of the bear yet, but from here on, we may get a lot of damage concentrating itself in the Dow and NYSE. If you take the 10 largest companies on the NAZ 100, you get a "collective PE (sum market cap divided by the sum of earnings), which is well under 30, not cheap, but no longer that outrageous, on the other hand the DOW still sport something like a 25 PE for much lesser growth.
Zeev |
