Dollar weakened .. on repatriation of Japanese money .. resulting in rise of Japanese bonds,, this is a seasonal thing ,,
Asia and Europe down ,, some what ,, spoos -4.. fair value borderline minus ,,
Continued weakness in market breadth ,, notwithstanding bulishness in Nasdaq , led by leaders ,, such as LU and CSCO ,, IBM, INTC ,, AOL etc looks to have topped out ,, some interest still remain in net sector but again ,, profit taking is in place..
As for micro caps such as SATH , DCTI ,, JBOH ,, etc ,, are still in play as these are speculative day trading money churning the volume ,, we are playing these,, in best effort ,,
Brazil ,, seems to firming up a bit ,, as panic now has subised ,, on several factors,, Soro's bullish comment on Brazil , where he called real undervalued ,, as well as an emergency fund set up by the US outside of IMF ,,, over night real has improved to 1.82 from high if 1.91 ,, still some 30% lower than pre IMF fiasco , , TBH showed some strength yesterday ,, and was good for 6 point ride ,, still ,, I would not go long on Latin America quite yet..
China devaluation threat ,, is now when rather than ,, nay ,, many are saying end of the year ,, but I believe,, a hole in the dam has now widened to a head size from a fist size,,
Mr. Greenspan speaks today ,, against the back drop of strong economic numbers and rising consumer spending ,, US economy is still strong and corporations are showing better than expected earnings,, which were lowered across the board ,, and far below 1988 numbers,, yet we are rewarding them with multiples far richer than they deserve ,,,
I believe caution is in the air ,, as we fast forward to Feb and Mar,, traditionally weak time for tech stocks,, I am very hesitant to stake out a long position at this time ,, I am 80% cash to look for that bargain,, such as KO around 50,, BA perhaps under 30 ? At same time shorting several mid cap stocks ,,
Retail should also come down as we are over with holiday season ,, RL ,, announced job cuts ,, on the day of the earnings report after the closing bell ,, which leds me to belive that they will report lousy numbers .. NETG is now a short,, and went short at 23 1/2 yesterday ,, for their 4 mill revenue ,, guess our buy from 18 to 28 in 3 weeks was a bit too much as I found a better company with higher revenue and alliances trading under 10 ,, we will have a coverage on this company as soon as our web and em kicks in hopefully today ,,
AOL buy of Moviefone should help nets a little ,, XMCM is cited as a possible take over,,LCOS with MSFT ,, EGGS a possible buyout ,, as lock up periods ends for many of the recent IPOs.. EBAY BCST etc ,,insiders could unload some of their shares and enjoy the benefit of their new riches ,, still ,, I expect more leg on secondary on line trading houses such as NDB ,, SIEB,,JBOH ,, may be even MHMY ,, R O F L M A O ,,
Yesterday I took a cab from mid town to Empire State BLDG .. my driver a married income provider from Bangladeshi ,, asked me about YHOO ,, said he bought 50 shares at 360 ,, I told him that it went down 18 points yesterday and his response was,, yes it's because they bought GCTY ,, he also said that he will not sell and will keep that 50 shares of YHOO till he retires,, I congradulated him as I got off the cab ,, at same time realised,, how pervasive this individual investment has become ,, reafriming my belief,, the liquidity of the stock market and how many of us are already making a living , trading stocks ,, a phenomena only those in the know have enjoyed for many years ,,
Again ,, for many of SA members,, our web should be up today ,, and expect em alerts ,, soon..
Good luck in the market today ,,
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