A few points. You shorted apparently on Feb 18 before the earnings announcement at 4:20 pm, (I bought 2000 for 112 15/16 the same day, sold 1500 for 13 1/8 and still hold that 500). Did you just pick a number? Why would you sell in the dark, just prior to the earnings release?
Asian Crisis? One, Dell is a beneficiary. Two, the timing was such that all the securities attorneys, and the current SEC rules and "safe harbor" law, led to the preannouncements in October, and the inclusion of warnings in the Sep 30 10-Q's that were due by Nov 14 for most companies. The repetition and headlines made it seem more significant than it was, but to me, it was as believable as "I believe that cigarette smoking is not addictive." Once I realized that the Asian crisis was a smokescreen for individual companies' bad performance, and otherwise there were (at least) offsetting positives and negatives, at Dow 7800 it was clear we were going to new highs.
And you shorted yesterday without waiting to see the opening pattern? Dell flew past 135 right to 139.50 that I saw (going to 139.75) before backing and filling for hours. Dell is a stock that can storm out of the gate like Feb 19 or yesterday. Other days, like Wed Feb 25 it can open up as day traders pour in (129.25) and then pull back (127.25 or so, although it closed at 129 15/16). Picking a number for Dell the day before without reacting to the dynamics of that day's trading, IMO is careless and injurious to your financial health. |
