I will tell you one thing - AMZN and BIDU are NOT on the TOP TEN TECH short list! Why? Well, AMZN makes too much sense as a play on high oil to me. More people stay at home and order online through a place like AMZN rather than drive out to pick stuff up live. Will that hold up long term? Well, AMZN is vastly overpriced, but for the reason above it could see higher before lower. I wouldn't be surprised if it gets to $85 today. Closed afterhours trading at $76s. I'm not calling it, just saying that they blew out and in this market blowing out is a HUGE sigh of relief and shorts get clobbered.
BIDU is still a growing mini-GOOG and relatively "cheap" though when it gaps up $40 today more than likely its certainly not "cheap" to most value investors. What investors and funds don't look at much is reality. AMZN is $76 after hours. MAYBE they will earn $1.50 this year - MAYBE. So, at $75 they are trading at 50 X's this years earnings. That's absurd in any market thats reality driven, but right now if a stock beats, it squeezes. So, best to stand clear of earnings and let other's guess.
We recalled SKF today at $111 and sold some at $122ish, for better than a $10 gain in about an hour or so. I think financials MIGHT have one more push up and then we should start to back and fill. Tech will at least start off very strong due to AMZN and BIDU, and from there we'll see.
Watch the action early on in some financials, the cool thing is they are trading in WICKED large ranges, which means you can trade them now intraday. That's a very good thing because I find that these types of stocks are more predictable in terms of support and resistence. FNM is having a really hard time holding over $15, thats something to watch if it gaps up again tomorrow/today. Might be worth a short, if it can't hold $15 it should head back toward $12, and then $10 and then...we'll see.
I think the market here is "ok" so I don't see the rush to short everything in sight. In fact, we went long some stuff today for gains, and we shorted GS for better than $2 and RIMM for about $1.50. But, in the end the market ended higher and you need to respect that and not buck the TREND. What we do long term is meaningless, its short term that means ALL!
See ya tomorrow in my TOP TEN TECH SHORTS class!