I too have noticed the nose dive of CMCI...pretty painful uh? JBIL lost QNTM a year ago and got trashed too...before it soared like a rocket. I think you should definitely hold CMCI. The opening gap made it impossible to cut losses so I guess you have to stick with it.
The market is pretty wacky now...with no clear direction. From a technical and fundamental standpoint, we have only seen the tip of the Asian iceberg. As a native of Hong Kong myself, I am more tune in to the local news than you US folks. Multi-millionaires and billionaires were wiped out...only the strongest stayed. Li Kai-Shing, THE real estate tycoon remained Ok. But other small time real estate newbies were wiped out, and lost their "close" friends. The Asian crisis is real, and recession is yet to come for them.
US in the other hand, althought seemed healthy, is in dangerous hands. Trade deficit is in unbelievable proportions, I dont see how Clinton's economic plan can bring down the trade deficit with the Asian effects. Althought some US companies will be less affected by the crisis, their stocks probably wont perform to its fundamentals due to the Wall Street manipulation (Individual stocks move in sync with the market). PPI and CPI reports shows that inflation is at 6%, contrary to the popular belief of 3%.
I have been reading an Oct 1997 issue of "The Wall Street Underground." It was written BEFORE the Oct 27 crash, but the author noticed the currencies devaluation beforehand. The author was bashing on the US economy and was very bearish in stocks. He was right, I guess, in that sense.
Ney's Theory, on the other hand, only looks at the price and volume of stocks. Fundamentals arent the biggest issue...the action of the insiders are.
Lets see how things will turn out in 1998. |
