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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (121497)8/2/2000 2:21:45 PM
From: Rob S.  Read Replies (1) of 1575623
 
Thanks goodness I recently bought a few other semis besides AMD. Another favorable factor is that mutual fund flows has improved since the April market drop. Within that figure, flows into tech sector funds also saw improvement - up (from memory) about $17.5 billion for the past three-month period. I suspect that money was committed prior to earnings release but quickly exited when earnings did not blow out expectations to the extent needed to satisfy seasonal concerns. The good news is that there is ample cash sitting on the sidelines ready to come in when the psychology of the market finally shifts.

"However I was encouraged by the reaction to positive comments on XLNX..both XLNX and ALTR have popped up nicely"

I encourage all to think about your comment because this points out a very useful market sentiment indicator:

Bearish indicator: When meeting expectations results in unusually high degree of selling and slightly lower results means a stock gets creamed. When the norm becomes good news also meets with selling, the probability of a top increases.

Bullish sentiment indicator: When significant good news results in prices moving up. More favorable is when good news in one stock serves as a catalyst to drive up other stocks in the sector. Even more bullish is when routine announcements (ABC company introduces product X which will add $2 million to sales by 2004) and that propels the stock higher.

The trend in how the market reacts to news lets you view into the minds of investors.
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