Chuz, I think that overbought is a term that describes the high volume surges that see the stock price run up very quickly. I don't think that anyone can deny that these run-ups are a bit steep, and they are totally fueled by frenzied buying. When the frenzy dries up, the stock is considered to be overbought, in that there are no more frenzied buyers to support the stock price at those levels. Where I differ with Eddie, and his ilk, is that there is a difference between overbought and overpriced. I do not think that DELL is overpriced in the low 80s. They apparently do, and expect it to drop further. But alas, the serious shareholders will step in and pick up the slack when the price achieves its equilibrium.
As for overbought, I think that it began to move towards that condition as it moved from the low eighties to the high nineties (about the same time we all began to have trouble breathing, due to the excitement).
The thing that I find most disgusting is how all of these bears come in and say, "I told you so" when the price falls like it has. Well no sh*t, Sherlock. It doesn't take a rocket scientist to figure this pattern out.
I rolled out of some of my Jan 99 calls and used the proceeds to execute the other half when the stock was at 95 (Yes, when I was in France. I have my priorities, you know.)
Anyway, as always, it's great to be LONGonDELL!
Regards... |
