Glen:
This hysterical selling off is coming to its end, and we will see a beautifull uptrend for a while, probably slow but constantly. The reasons for that are very simple:
- Considering all the good news coming out during this horrible decline, which i think are more now than in any other time of the year, (stocks buy-back programms, tons of upgrades, no warnings of disappointments, new big contracts, etc), and the fact that our sector its been beaten even worse than any other sector, including those which depend big time of Asia economy, the main reason for this sell off it's gotta be an exagerated profit taking, helped for the insecure feeling about the world economy.
- Even when this sector outperformed the market average by far, and most of the stocks are still over 50% gain from their value at jan 97, the comparison between acumulation and distribution since June 97 shows me that, there are not to many investor out there with profit to secure and the ones holding with losses, should know if they didn't sell at 10% losses because it supposed to be the bottom and they believe in fundamentals, now that bottom has to be closer.
So, i really thing sellers we'll be much less in the fallowing days. Excuse my grammar. I've never been good in writting, not even in my first language.
Thanks,
Lorenzo |
