Let's understand that this selloff in the Red Hots is not because of President Clinton's biotech speech. In fact, I could argue that such a negative reading of the speech was totally off base. But that's water over the dam at this point. So far that's pretty prescient and I am not changing my mind just yet. This selloff came because we all got too cocky at Nasdaq 5000 and we got there on fumes rather than on real buying.
Fumes is margin.
Real buying is cash. If you don't think we did it on margin. My disdain for margin is well known in these pages, by the way. I only use it when the market has been down and can be coiled like a spring back up, not in the Nasdaq stratosphere. The selloff accelerated because of all of the new supply coming on.