"Yet another incisive analyis! Have you slaughtered any chickens and examined their innards for confirmation?"
PauL Hi,
I could be wrong, but typically markets, stocks have a habit of retesting lows after a sell off. Based on Dells resent weakness and what I've been reading , I think some of the following reasons are going on now.
First, investors who didn't sell on the first decline, but got
spooked by it , will sell into the rally that follows,
happy to get out. Second, traders who bought on the way down or at
the lows will sell off on the bounce to take profits. Finally, the
initial correction may have convinced some technical analysts that
the market tone has changed. So they too clear out on the rebound,
to play it safe. All three of these effects could push the
Stock back down toward the previous low. In addition, there's probably alot of margin riding on this stock thus adding more fuel to the fire.
Long-term, Dell will be much higher, but I would like to see a healthy correction in this stock of which I will be a buyer again! Good luck, Mark |
