Well, I predicted the decline of the internets to the day over 2 months ago. . . and have not waivered the least since then. And if that wasn't enough. . .many shorts on SI started playing Inets long just recently. . .hello? Can anyone say "correction is imminent" ??
Now that many of the top Inets have declined 30, 40 and 50 percent. . .I am happy to see that some are beginning to see the broader picture.
DCLK makes a great short from 101 here. . .could pass 75 by Thursday, IMO. . . I am a buyer when it breaks passed 60 and have now downgraded my bottom.
I now believe DCLK will hit the support level of 55 before the Fourth of July, but will bounce hard and fast off of that level. . .so picking up anywhere under 60, I believe will be bargain basement levels. Remember the revenues they make. . . this one is not going anywhere in the long term picture. . .except making big bucks off the many hundreds of thousands of websites with banner ads now on the net.
Now that is going out on a limb and on the record.
Funny thing is that I am already looking for long internet bargains. . . what you want to watch is bad news on a bad internet day, which leads to over-selling and over-shorting.
Over-shorting is something we all need to ponder for a while. . . with the growing number of online traders playing both sides of the ball these days. . .many stocks are getting over-shorted. This can lead to a highly volatile and potentially explosive scenario. We need to make a list of stocks moving into such a status. . .then we can watch carefully for news and pounce on them. . . with the right timing we can ride those waves all the way to the beach. . . . but only as a daytrade for a quick scalp on the obvious.
Again. . .I have been BEARISH now since April 15. . . but am playing bull positions against bear plays. This is one thing that is just starting to work. . .and as always. . .we adjust our strategy here on the HOME thread in close accordance to what is working. So keep eyes and ears open on that type of play.
Otherwise. . . we need to get more serious about broadband telecoms now. . . they have continued outperforming. . .over 3 months have been the leading sector. . .and are still getting sold off on bad market days. . . so I see some real opportunities there.
ARTT was fabulous today with their Quest news. Was it 4 or 5 months ago, when I said that ARTT was a future high-flier like AtHome, based on their head start in broadband wireless for business customers and Lucent's generous involvement.
Keep a close eye on others like ADAP, DMIC, WSTL, etc.
Plenty of great plays out there. . . .the only REAL pressure I see here is global politics. . . but I am moving forward and believe that our immediate future is safe. . . though I have a watchful eye on China and the former Soviet Republics.
Rande Is |
