I was writing just yesterday a post about to short MSFT as I already did just yesteday and I was starting to accumulate small bets shorts on Apple, Baidu and other stock where I'm not so happy about where are with indexes still so law and with any sign of long term inversion (at least the cross of the 242 moving average, or similar, but not after a rallly of 50% with a tremendous gap closed and with any fuel for a solid accumulation).
BIDU is trading at over 100 of PE with a growth that is not so solid and EPS very unstable. Is up 330% since the lows of march or even more.
AAPL is a stock just bough bought and bought as crazy people, fans, was doing on soccer stocks in Europe, then went in bankrupt.
Ok, apple is solid and healthy stocks but there is no reason as money enter and exit in apple stocks, by the way now as a PE near 30 and is not so cheap anymore as when it was around 80/85.
UPS gave bad news today too, may be the market is not listening the earnings and is betting on the future and on the fact that soon those earnings will growth or will be stable at least waiting for the end of the recession.
However to me seem crazy how was bought a stock like microsoft, near to double and that historically have not performed well in the past 6/7 years with the bullish cycles of the indexes. So I do not see the reason after a 90% rally why should now overperforme and with the news of today, the spread for sure will go against MSFT for sometime.
However, and healthy correction for stocks that are topping like BIDU, APPL, etc is needed!
MSFT and AMZN some signal gave today, tomorrow can be another stock... More time the market will need to realize... more painfull will be what I'm waiting as the last correction before the long term buy of this crisis 2007/2009.
Probabily they are just waiting the timing and to use the october/november months that are psycologicall the most bearish believed from traders and investors worldwide, and you can remember the 2008 how bad it was (:-)))