Who starts the run? Do flippers, traders and momentum players decide to pile in first? They create a little upside, something positive comes out in the media and "value" investors start buying shares. Then we have a run. Or does the "value" crowd create the momentum and the traders follow?
I'm not sure it matters, but the process interests me.
Just as I argue that long-term investors should prudently sit out near-term gains in AAPL, I would hope that most also shy away from placing bets on dead cat bounces in DELL, RSH, BBY or RIMM. Certainly there's money to be made there; however, if you make it a habit of poking in the dark like that -- placing what amounts to a hollow, uninformed bet -- you're going to end up hurt sooner or later.