Good morning, Mohan
We haven't seen the market set a bottom yet, but this relief rally may have some legs thru most of this week for several reasons.
First, the techs were severely oversold and due for a technical bounce. Second, Comdex news will further fuel the technical bounce. Third, HWP and AMAT and DELL to report, and the market anticipates with bated breath and hope. Fourth, options flux will move these stocks to the high end of their trading ranges, last week the low end was cleared.
Fundamentals have not changed, uncertainty has not subsided, world currency situation has not resolved. Markets are vulnerable and I will look to short towards the end of the weak.
Besides, AOL what looks like a good short? Internet commerce will be a big theme at Comdex and AOL should respond as usual. Will hit it from the top if and when.
Regards. |
