The real question you are asking is two-fold: 1) How many traders had the foresight to sop up some really cheap shares yesterday afternoon and this morning, and 2) If so, have many of them will take profits toward the close or on the open?
Beats the heck out of me!
With such a skiddish market, I would think anyone that did get cheap shares recently would be real tempted to sell. However, because the market was down 550+ points, it seems to reason that there could not possibly be enough of these (low-end) shares to have to worry about the effects of related profit taking.
I hear on CNBC that institutions are back in buying again; I doubt they'll unload at the end of the day. The "average" guy that is fresh out is probably sitting on the sidelines watching. If not, then they are buying at these levels and helping out the rally. If prices do rise sharply, then it is possible that the second wave of buyers may have made enough to want to sell quickly.
To summarize, using INTC as an example, I doubt many traders got in in the low 70s to effect a wave of profit-taking at 80. However, the wave of people that bought in the mid to upper 70s might be tempted to sell if the price gets into the mid-80s.
Did that make any sense?
- Jeff |
