>>> One last thought, it is a well known fact that short selling and covering has driven this sector to nose bled levels. If the shorts have given up on this sector, as has been suggested in the media , price drops could be huge when and if selling begins. <<<<
I don't think anyone is going to give up on this sector. One of two scenarios will happen in early 1999 (here's my thoughts, for what it's worth, probably not even worth 2 cents - that is one cent American)
1) A sell-off due to profit taking will take place through the first two weeks in January at which point numbers will start to emerge about the 4th quarter sales. As a result of good numbers, a surge in prices will take place, not because of short sellers, but because of "validity" in current pricing based on the good 4th quarter numbers.
2) If the 4th quarter numbers are not as good as expected, more sell-off will occur. However, in this scenario, after the sell-off the shorts will rule for a while and the prices on these stocks will be volatile, thus allowing the day traders to profit significantly.
Most analysts have continually underestimated the power of the new daytraders. A continued and probably renewed focus by daytraders in January will provide strength to this new group of stocks. I, for one, do not think the world is falling but do believe a small sell-off in the first two weeks will provide some great opportunities for profit in the coming month.
Cheers everyone.
P.S. Chief, my hairdresser says that I'm getting too old to keep my hair passed my ears. She's recommending higher style and thus I'm reading this as higher stock prices next year! My daughter was given tarot cards for Christmas so I'll be consulting her tomorrow...I'll let you know if she tells me any significant! |
