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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (76429)	3/7/2001 11:17:09 AM
From: Perspective	Read Replies (4) \| Respond to of 436258

Short-covering rallies should be anticipated when shorts have plenty of profits on the table. These corrective actions are always more violent than major trend moves. Think about pullbacks within a bull; they're much sharper than the upward moves. It's human nature to take a profit much quicker than accept a loss. When the buying is focused stocks with heavy short interest, it is a clue. The SOX is a favorite of short-sellers (near and dear to both our hearts at this very moment) because of the violent swings in the component equities as the cycles ebb and flow. Seeing SOX up 30% in matter of a couple of days smacked me in the face with the fact that this was short covering. You should expect "short the rumor, cover the news" in a bear, just as you get buy the rumor, sell the news in a bull. Anyone that couldn't anticipate the bad news out of XLNX shouldn't be investing. I'm also watching fund flows. I don't believe that we've seen any real PPT action at any time in the past several years. What has been attributed to PPT was mutual fund buying. I genuinely believe that it involved coordinated strikes and deliberate attempts to knock prices higher on the minimum dollar expenditures by breaking the market mechanism - taking out all the offers in a matter of minutes. But when they don't have OPM to burn, they can't produce GFY rallies any longer in the face of bad news. That is where we are now. I remain nervously short here, but in reading Reminisces of a Stock Operator, I'm finding a great deal of confidence in the fact that markets ultimately go the direction that fundamentals dictate, despite the timeless attempts of manipulators to the contrary. The news out of XLNX was indeed terrible. Seven months inventory?!? That is bad news, long-term bad news in my book, and the stock will reflect that once the shorts who anticipated the news finish covering. I'm certain you noticed that the SOX bounced right where it had to in order to prevent printing a new 52-week low - that was more than mere coincidence. I'll take their money, whoever is supporting the unsupportable. I have to sell this rally in XLNX, and many of the semis. The market demands it. I can't sleep if I'm NOT short this. There is no other appropriate response IMHO. I'm just careful to leave PLENTY of equity cushion, because I know I'm playing with nitro. This manipulation will fail, as all others have. Time is on our side; the path of least resistance remains down. BC