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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: robert b furman who wrote (42434)1/1/2009 8:24:10 PM
From: Donald Wennerstrom   of 95572
 
Hi Bob, and a Happy New Year to you as well. May this coming year be better than 08(at least the last half:)). Thanks for your many contributions over the past year.

<<This year will start slowly and I suspect much like the turn we saw in 98 we may well see in late 2009 or 2010.>>

I think there will be changes as well. Since Nov 20/21 we have been on an upswing of sorts - remains to be seen where we go from here. Tomorrow should be an interesting day, but even more so, next week may give us a look into what is going to happen next over the short term.

The charts show that we are deep in negative territory and there will be swings to the upside in the future, but there are many outside influences at work right now. The question is - are those influences enough to drive stock prices lower over the shorter term, say the next 3 to 6 months. If so, buys will be even more attractive than they are right now. For the longer term, values are very good right now.

If the companies do not invest in capital equipment over the short term, they will have that more catching up to do in the longer term. The old "rubber band" analogy fits very well here. The deeper the valley the higher the mountain top.

Don
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