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Thursday, May 25, 2006
One more reason for the big bust
I was expecting bounce in Nasdaq and rotate my June puts into Jan ones, but Google can not bounce (target 410) with the market due to Yhoo and eBay news. Now when Yhoo and eBay have joined forces Google valuation seems completely ridiculer. Once 370 will be violated again stock will melt down. Nasdaq will bounce here (target qqqq 40.5) Dow and S&P will form double top on weekly basis and long term double top in Dow will be confirmed. Emerging markets was just the beginning: USA market are due to the big sell off this year. Wise man would sell into the strength on every bounce it is not temporary blip it is bear market came back. Google's melt down will be the major issue in the coming revaluation of assets value and risk approach. A lot of people will be taken surprised how low it can go and they will be astonished how could they pay such prices for SEARCH COMMODITY INTERNET BUSINESS WITH QUESTIONABLE REVENUE, ARROGANT FOUNDERS CONTROLLING THE COMPANY AND MOUNTING COMPETITION.
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