To: Clint E. who wrote (19513 ) 1/21/1999 4:38:00 PM From: space cadet Read Replies (2) | Respond to
Hi Clint. Ugly day today. The way the market folded at the close like a cheap suit not a good sign. I still say: as goes Mr. Softie so goes the market, or at least the Nasdaq. And the fact that msft couldn't close strong looks ominous for tomorrow. The people who are holding the internet biggies: yhoo, amzn, especially ebay must have balls of steel. I realize most of them have 10x gains in them so they have more patience than normal but still those babies could easily get cut in half. I don't expect that to happen right away, but in two months I would expect that to probably occur. I think an internet peak has passed us by. I got out of many of my lousy cheap internet plays and feel fortunate for breaking even. I'm still in a couple of plays like navr, a virtually worthless company that nobody likes and everybody owns just for its coming netradio spinoff. However I wonder if the internet spinoff/ipo game may also be on its last legs. If so then stocks like navr could justifiably go under a buck. Scary thought. In retrospect I am best at playing the dell, msft, emc's, etc. That really is my forte. I'm still holding dell, though I sold covered calls on all my positions so I would like to see dell sink 5 points. It held up amazingly well. I feel certain dell will imitate msft and announce like totally blow out earnings. But it may be too late by then. Timing is everything, especially with the techs. I forsee a normal hi-tech correction coming in the next couple of months, so hopefully we all will have another great chance to get into our favorite leader cheap. It looks like another terrible year for the small caps. If I had some small cap that tripled since Oct I would sell it for sure. Wish I had played the downside in the internuts the last couple of weeks. They priced the premiums out of sight so the only real play was to short (which I really don't like doing, especially overnight) or short calls. I really don't know what the next 3 weeks will bring but I hope a recovery before the inevitable march pullback... I'll be ready for the next earnings rally in April this time. Tech sector looks great this year. Blow out earnings from seemingly everyone. '99 looks like another great year for the hi-tech leaders. The internuts are another story. Could be really ugly in april when they fail to match their christmas numbers. I still like yhoo under 200 though, and aol at 100. I think there is a good chance we see those numbers.
