Tuesday, January 31, 2006
Marketz & Stockz : The Momo hangman cometh..
We are watching as goog crashes and burns in after-hours. Even after the anemic 5 o'clock bounce , almost 20 billion dollars of market cap wiped out and counting.... As readers of this blog know, I have been sounding warnings on the overheated momo stocks for a while now. Came very close to shorting GOOG on two occasions today (once at market open and another just after FOMC announcement) but lacked the nerve to follow through. Sucks. I take some consolation in owning some longer term SMH puts that should benefit from the carnage that google's earnings miss is going to subject the entire market to.
If you happen to be a google stock owner or owned google calls,etc, you have my sympathies. But gotta say the signs were there. The vicious sell-off on Friday, the 20th of Feb had GOOG at its epicenter..if you remember. Even though the media bamboozled the public into believing the sell-off was about google's tussle with the government, it was actually smart (informed) money bailing out in advance of the very event we are witnessing now.
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