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a split w/ earnings is unlikely as you say, cricket. however would it make a difference if a split was announced? i don't think it would have much of an impact. this market has changed considerably, due primarily to lower earnings, in the sense that splits earlier this year resulted in doubling of stock price, ala AOL, LU, DELL,~50% w/ MSFT and on from there. now, the split declaration seems to be a non-event or a reason to sell, for example, YHOO, AMR, CSCO, LCOS, and others. as much of a cliche as it is, "...this is a traders market.." it's true. therefore, for the moment, i am going for 1/2 s, 3/4s, and 1 pointers, while working full time in a day job, otherwise staying in cash (even in my IRA). the market will change again and it may be soon, but i refuse to watch my assets erode away daily via 100 +/- pts on the DOW. as you probably know, we needed more of a breakdown today to be rid of this correction, but wishful thinking doesn't change a market, only acceptance of what we are facing will result in profits. btw, a good friend who works for MER in London has been preaching the bear line to me all summer, evidently it got through. having said all this, the bottom is near, I can feel it and we are due for one more run up, not necessarily DELL though,in '98 (probably mid-august to mid-september). thanks for checking in w/ me. :-) |
