>> In the meantime, they have lots of low priced shares they have accumulated the last 6 months to sell to you.
Don,
I've had occasion to evaluate this idea with my main stock holding (which is not AMAT).
I really don't think that institutions are accumulating stock in tech companies at this time. If they were, share prices would have been higher.
In fact I think the institutional "plan" has not materialized. It may not be a fool-proof plan, but usually, the only way institutions and hefge funds benefit from their own selling, is to induce panic, which drops prices further, and they buy, while the retail speculators are selling.
This time, the steep price drop hasn't occurred. And the volume hasn't been high, after the initial (institutional distribution). Any buying by institutions at this time will result in a quick price recovery.
So the question is when will that buying start. My guess is that we won't see a mass re-entry. We have rate hikes, budget deficits, trade deficits, high commodities prices, rising labor prices, and an uncertain election.
I think this will be a range bound market, until the news drives it one way or the other. But my feeling is the next phase is up. Especially, when it looks more certain that there will be regime change in November.
Sarmad |
