8/16/2006
Deja vu like yesterday's run up, but what will keep it going higher? All the indices are currently in technical territories dow near 11340 , naz 2150, and the sp 1293, so will it consolidate tomorrow or move higher. Well with option expiration, it will either consolidate or just trade mix till Friday. I'm continuing to hold onto my short positions and will weather out this short squeeze that is currently going on. But, my theory is since the slow down in the economy is coming, how will the companies grow their revenue to justify their current price? So, I'll hold and the consolidation will come soon before the truly real rally in the 4 quarter.
Longs Cost Unrealized g/l:
vlo 63.83
adsk 34.33
sndk 46.77
Short Cost Unrealized g/l:
rimm 73
aapl 62.40
ntri 50.50
posted by wb @ 4:47 PM
2 Comments:
"But, my theory is since the slow down in the economy is coming, how will the companies grow their revenue to justify their current price?"
You are assuming they are currently fairly priced. I do not. I think many stocks have been unduely bashed recently and are under their current fair value, even taking into account modest slowdown, which may or may not happen.
Yes, I do agreed with you that the Naz has been beaten very badly since early May and dragged several great fairly valued stocks down with it. However, the last 4 day's market rally base on cpi /ppi doesn't justifiy the run up in rimm and aapl.
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