John:
Regarding selling volume, my thoughts are these:
The smart money always gets out before me. I can't time the market and have limited success timing individual stocks. I usually buy what I believe to be growing companies at a price that indicates good value (whatever that may be). However, when there is an erosion in price, for whatever reason, eventually people get nervous. The more nervous people get, the more they tend to act to stop that nervous feeling. Some people who bought higher, will now be saying to themselves that they should have sold higher, the Asian markets are killing the stock market, no one will ever sell another computor, all these companies are like yo-yo's etc, until each individual finally sells. When I feel that I must sell, it is usually too late and that feeling will coincide with a climax in volume to the downside. It is purely psychology. It has nothing to do with rational investment decisions. It may not happen with PTIS, but I would not be surpised to see it go below 6 at this point on heavier volume. I am not selling at these levels. I prefer to wait out the business cycle for this solid company. All the stocks in my portfolio are lower today than they were within the last two weeks. However, most are above where I bought them and I think only one is slightly below my entry point. January should be interesting.
JD |
