PK,
I'm a strong believer in the market technicals you pointed to in your previous post. I also think that this market needs another substantial correction, if not a down right strong bear market, to calm some of this outrageous speculation. The market needs to give a good spanking to the blind eyed wet behind the ears bulls who think you can throw a dart at Anything.com and come up a winner. Tulip markets only last for so long.
At the same time, there are strong fundamentals that are underlying this current market which are causing the run. The parabolic run ups need to be, and will be, stopped at the appropriate time. If you look at the run started at the end of 1995 through today, you see a very orderly, consistent trend, which I believe is some what justified. The excessive moves over the trend get corrected and the over corrections create terrific buying opportunities.
One of the things that seems to get lost when evaluating today's market is that it's not only the tech/internet stocks that have exploded since Oct 8. One look at how fast GM has gone up, I believe it's up about 80% in a few months, will show that lately other stocks are getting caught up in the current mania. Stocks that you wouldn't really expect, or maybe I should say that I didn't expect.
A bull, who becomes more bearish with each passing day........
all in my opinion,
Michael |
