>> I think you are both right. INTC could fall even further ....
Don, institutions are always right - by definition. At least in the short term. When they sell en-masse, the stock price always falls, and then falls further. The questions for us, scrounging for crumbs on the margins, are: when will institutions stop selling ? and will they ever buy again ?
A few months ago, some postings addressed the question of how many days does the sell-off last ? My own experience is 3 to 5 days. Especially on heavy volume. But one can look at the rate of volume decay to project when it will return to normal levels. Especially when the sell-off is capricious, as in "company makes $16B operations cash flow in one year, stock drops 25%".
Anyway, for INTC, First day vol was 300m shares. Second day 200m. Third day 150. Average is 50m. It may take a day or two more. But the deacy is rapid. So I think it is safe to buy. And as far as the second question of "will inst. return to buy mode?", there is no doubt. That part is as you said, a slam dunk yes.
Sarmad |
