To: Plaything who wrote (837 ) 10/14/1999 2:21:00 AM From: J.T. Read Replies (3) | Respond to
Plaything, this earnings charade game as depicted in this AAPL microcosm is one of the ongoing arguments bulls and bears have regarding not only individual stocks, but on the broad valuation or overvaluation of this market depending on who you talk to. I think our friend Bill Fleckenstein calls it "dead skunk". INTC just got finished with this same game when they talked about last quarter's "earnings shortfall" that next quarter (Tuesday, OCT 12) would be all rosy and on the up and up. NOT - Charlotte and her cohorts have to spin another sticky web which will very soon turn into steel cables that trap their own kind in the prison of their own walls. The reality in the macro-market picture is that the NDX is trading at roughly 150 X Earnings and this new high just registered on the NDX (COMP)Monday October 11 is looking more and more for what it really is: A FRAUD. A FRAUDULENT NEW HIGH UNCONFIRMED BY EVERY OTHER INDICES IN THE BOOK OF WISDOM BY ASTUTE TRADERS. If the last statement is true, then there is only a one way ticket for this NDX to go: AND THAT IS DOWN; with brief hit and run rallies. If the bulls do get one more stay of execution as measured by additional new NDX highs, then other major indices like the SPX, DOW, BKX SOX et al have to get legs real quick and confirm the NDX is for real and not dead skunk. The deck is now stacked heavily against the bulls but the bulls have squirmed their way out of this "holy grail" many times past.
