Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (18370)	5/12/1998 5:34:00 AM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 94695

I don't know IBD's selection criteria either. But I do think this market has been ignoring deteriorating fundamentals for quite some time. It is a fact that first quarter earnings posted the lowest growth since 1991. Ended up to be something like 4.1% y/y. Yet the market has just rallied and rallied some more, all on the presumption of earnings improving in the second half of the year. Valuations are stretched sky high. So now from this lofty plateau, what keeps up the market while we wait for third quarter earnings to begin to trickle in beginning in October? What happens when second quarter shows continued low growth? Sometimes I think when things look like they just can't get anymore out of kilter, the top is being witnessed. I wouldn't be surprised if we have already seen the top. Dell was holding up the techs, because they report next Tuesday, and techs like to rally with Dell. Dell just ran out of Viagra today. No matter what Dell reports on Tuesday, it's already priced into the stock, IMO. I'm thinking of going in heavy with puts tomorrow, and hope to hold them into continuing weakness. I think today was the last best chance for puts, but it's not too late yet. Who knows what will happen. I'm thinking MSFT/DOJ thing is putting a very wet blanket on tech bullishness. What's been strong lately besides tech? Okay, like (Bonnie?) noted, sex (pfizer), drugs (enmd), and rock and roll (ktel) have been hot too. But how long can the market go on a $10 pill, a music CD, and a hope of curing cancer? What's left to get excited about? Once MSFT gets low enough, there should be some strong buying in MSFT..I know I'm watching, waiting to pick off my share. -g-