SOME posters in SI are worth reading, not all. If you step outside the strictly stock talk, the majority are just a bunch of ego-maniacs with their own truths, never to be questioned. Best is to just say: "ya sure" and shut up to their mumbo jumbo. Even better... stay off those threads.
Yahoo and Raging Bull are just a cyber-extension of funnyfarmville central. IMO not worth the time.
the mutual fund investors are still there...they were not wiped out like the margin buyers of technology were. If they keep pumping money into technology stocks.
This, combined with the fact that we are NOT about to fall off a cliff of world-wide financial disaster as some of the fatalist seem to scream about, will keep the market somehow alive, volatile, but alive.
I believe that the mood turned so bearish simply because the valuations of some .bomb businesses was unsustainable and as we have witnessed they have become Internet ghosts. In addition, I highly doubt that the retail investor was leading the cabalgade of sellers, once again, I think it was the pros leading the march.
I mean... Pets.com ? that SHOULD have been a sign that we were about to fall off the crazed valuation cliff.
I belive that what we witnessed from September on could be a prelude to what might happen in about 7 or 10 years when every single baby boomer will call their respective mutual fund office and say...
"Ok I want to retire now and so I would like to start cashing in..."
Then, we will see the proof that what makes a stock go down is that there are more sellers than buyers. just that simple. T/A will be of little help, the fact that there will be more sellers than buyers period will seal the fate of the long bull. Can T/A anticipate that...? well, we will see.
All T/A can do is give us a "clue" as to what might happen, the reason there is a degree of reliability is because so many people follow it.
I have no idea what most people will do, all I can do is observe and act accordingly, AS THE MARKET SHOWS ME, if I am wrong I will get out of the position I took.
The demise of the internet companies has been a blessing for Microsoft--less threats to its core businesses.
Ah yes and... are they not sitting in a mountain of cash that continues to grow ?
Beats the hell out the IPO of www.crap.com doesn't it ? |
