El: I have noticed before that when the inflation numbers are on the strong side, perversely the tech sector does well, the next day. The logic seems to be that for the tech sector, at least, a robust economy is more important than an uptick in inflation.
In any case, the 4/10ths uptick in December is well within the low inflation rate scenario, averaged out.
There may be other trouble brewing, though. If Brazil is not fixed soon then it could be talked up into a threat to growth, in general, and to tech sector growth. The talk of an overvalued market is also an incipient threat to CPQ's share price once it moves into the $48-52 range.
I was in Amsterdam yesterday far away from internet access and even news of the spike to $48 so did not execute my plan to sell in the $47 range for a quick trade. Maybe I'll get a second chance tomorrow and maybe the spike will be as high or slightly higher. |
