Brooks, Michael Burke says it best "Fat people can get even Fatter, and they often do" :)
Traders have been trying to time the decline of AOL & YHOO for quite some time and when competitive reality catches up with overly optimistic valuations we see the likes of OXHP (Oxford Health), DDIM (Data Dimentions), EGRP (E*Trade), & ZONA (Zonagen) take dramatic dives.
However, it is next to impossible to time the "news break" of the issue you know exists. In the case of OXHP you simply open up 33 points lower and poof goes that imaginary market cap. No time to short or call the top. I take 1/3 of a position at a time when shorting (another Michael Burke-ism) and let it go against me. I lost out on YHOO once already but have faired well on PNDA, DDIM, EGRP, MU, & CTXS.
Good Trading, Santa Rally or not :)
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