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What I did, wolfdog 2, when the stock started to take off around the time shortly before and after the earnings report was released, was to check out the PEs on the competition. Talk about getting a nosebleed! But IMIC was and still is trading at a discount to the others, therefore my renewed confidence that it's ok to get back in! But imho you're absolutely right, the technicals, esp. stochastics, scream OVER-BOUGHT, and this is why I initially sold. The situation with this sector, however, reminds me of the offshore drillers,who continue to rise despite the fact that the price of crude has remained stable. My conclusion: the Street realises and has come to a consensus that this sector is just at the beginning of its run and that the PE maddness is the anxiety we have to live with if we want to participate. Also, it appears that MANU beat its earnings by 2 cents which should be good for continued momentum tomorrow. The PEs are scary but imho, until one of the leaders fails to come through, the way 3-com did in the networking sector, I will let my nose bleed a little and enjoy the view. good luck, fred |
