Finally bears showing up. Last week, all the hype was about MSGI going to $50 and the Bullish sentiment was way too overwhelming. Its good to see some bears back, I take this as a good sign.
Now, a few point for the bears is that most of the big INet (YHOO, AOL, ATHM, AMZN) are breaking through their 50 DMA and they all are in a downtrend. I also think the DOW is way too high (should go back to 10,500) and, as much as the NAZ keeps bouncing on the 50DMA, it could break down if the DOW starts correcting (NAZ 2400 sounds reasonable).
I'm surprised YHOO didn't go down to $125 and I expected to see AOL in the low $100.
However, the downside risk doesn't look too bad vs the upside. Who was the analyst who called DOW 11500 for July? It's only a couple of months away. I think we'll see NAZ 2750 before the next millenium.
As for MSGI, could we go down to $20 again? Possible but unlikely. Long term, we all believe it will be the next CMGI and it looks quite possible. So, 10 points down vs 50+ up in a few months, should we care?
*P2
PS: Actually, as a short term trader, I do care, but it's good to keep the troops morale up :-) |
