I have an unusually strong feeling that YHOO and AMZN are going to tank this week.
As you know, earnings do not matter for Internet stocks, never have, and probably won't for another year or two.
Unfortunately, this works as strongly against those who are holding these stocks as much as it has worked for them before now.
The season of capitalization is over for these pigly lemon tulipmania sucker-fests, and the huge drop that YHOO took after reporting "strong" earnings (and I do use the term "strong" loosely... you and I know that relative to capitalization of these stocks these "earnings" are the biggest joke on Wall Street), clearly demonstrates this.
Thus, I don't care if these companies report good or bad... a big sell-off is coming THIS WEEK, IMO.
Look at the insider registrations to sell for AMZN and YHOO(particularly VISA registering to cashing out a massive YHOO position) and you may get a feel for the carnage ahead.
So, before you jump in on a dip, if my "prophecy" does hold true, know at least that you were fairly warned.
-- Eric
P.S. AOL may show a higher degree of immunity than these pure (garbage) internet plays, as at least they have a real network and subscriber base. Quite frankly, however, AOL is so absurdly over-capitalized that despite this I believe it will tank as well.
Good Luck. |
