Yes, I do not believe this sell off is what some were expecting. Too many stocks showed strength in this sell off, many being the speculative high techs. Once money is chased out of these speculative type of stocks, than IMO a good bottom can form. As it is, we sell off, rally a bit, meander for a period of time with small up days, sell off again, market does not go up when oversold, then eventually a larger sell off takes place. This kind of trading activity is what we have been witnessing. Positive news comes out, the market yawns which is unsual in an oversold condition. Mildly negative news comes out, the market screams and runs by selling off. Not my idea of a sign of good times to come. Money moving out of the "blue chips" and other money staying the the highly speculative issues. Even the high tech industry leaders like MSFT and INTC have not been looking that good, including DELL.
I have been noticing an interesting phenomenon where they appears to have been money moving into the Semis which comes as a surprise to me. I guess the thinking here is that this industry has bottomed, and even though it may not make someone allot of money in the near future, they may not lose any money either. Very odd indeed. A premature search for "value" in what Judy has been talking about in previous posts? Today I see those stocks sold off like the "blue chip" stocks did. So I do not think any institutional money of any significance is going into this group. So it must be the public money.
Comments?
Bob Graham |
