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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Diamond Jim who wrote (2905)1/19/1998 10:39:00 PM
From: mister topes  Read Replies (2) of 42834
 
It is amazing how you miss the whole point of what is said.
Intel at 69 and Intel at 77 are two different prices.
If you bought at 69 and could sell at 77 in under one month
and pocket an 11.5% gain or 23% on margin you would be
ahead that much. If you thought the move from 69 to 77
discounted the good news of the earnings report you should
take your trading profit as a trader. You are making a huge
mistake calling $69 Intel the same as $77 Intel. This is
the same mistake people made when Intel was in the nineties
last year. The stock was overvalued and had to go down.
And it did. And at $69 it was short term undervalued and ripe
to rally and it did. And then the rally failed at $77. End of story.
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