"Disappointment":
AMAT's competitor gives (weaker than expected) guidance, and AMAT gets slaughtered. TXN and ALTR come out with great reports, and the stocks go nowhere. Conclusion: we are in an episode of panic selling, when good news gets ignored, and bad news gets an exaggerated response. Stock fund outflows, VIX spike, high volume, general sentiment as expressed on CNBC and on SI, surging short-selling (amateurs joining the pros), all say the same thing: panic selling. This is the time when it is hardest to buy, and hardest to hold. My gut says SELL, SELL, SELL!!! My brain says: buy as much as you can, then hold on. I'm considering selling a bit of stock, and using the funds to buy 2005 LEAP calls in TXN or AMAT or ALTR.
I started saying this with the Nas in the 1600s. Early, obviously. Still think I'll be right, eventually. |
