Date: Thu Jul 14, 2005 10:34 am
Thanks for all the responses on PALM and RIMM. Conclusion: I plan to stayaway for a while because anyway RIMM is around 72 and down 8 bucks fromrecent highs.
Over all Markets:I have been following the markets closely over the last 3 days. I think itcertainly has some sustaining power at these levels or 20 points less ormore (nasdaq) but over all from several stocks that I follow and from theway the markets are trading, I see a lot of distribution. Stocks trade at acertain price and then there is a sharp drop on volume. Again it goes up tothe same levels on seemingly small retail buying and then same story again.Before 2 or 3 days indexes were in the climbing mode but on thin volumewhich is not a good sign.
Ofcourse the big contrarian indicator is CNBC where everyone is extremelypositive and gaga.Having said that, the economic news is good (not excellent). Retail buyingis good for back to school season. Earnings are good so far. BUT ALL THAT ISPRICED IN for the last 3 weeks or so and it will be a tough act to keep upwith earnings and economic news over the next 2 months, the summer months.Summer will be slow in my opinion.
It works perfectly well, keep up the hype for now and let people buy themarkets. Gives time for shorts to come in and load for a 2 to 3 week periodand then when there is little market moving news, market goes down -institutions buy a little (very inactive during summer) and shorts cover fora few percentage points gain.
Summary: 1 or 2 weeks more of these levels max. In fact personally I thinkit's already there. August / September it might revisit 1900 - 2000 (thoughfor a short time) and will end the year well.
