Kyle, the reasons I advised waiting are:
16 is roughly NSM's 200-day mov avg, and NSM could very
well hit it on this run. But, after more than doubling
from 7 1/2, probability would favor a correction.
The mutual funds are buying tech stocks across the board
to help their monthly performance rankings, creating an
overbought situation.
The general feeling one has in this environment is to buy
for fear of missing out. Well, one has to ask whose selling?
After this run, NSM could settle in the 13-15 area, instead of
12.5 or below, but buying then, on a correction, greatly increases
the odds of a successful purchase.
Lastly, if one is investing instead of trading, the above is
irrelevant because NSM should rise easily above $30 in the
next up cycle.
Ken |
