Great post. I'm actually surprised that the video gaming stocks have not done better during this latest rally but bear market rallies, if this is one, have a tendency to inflate the value of a lot of fundamentally questionable stocks.
Hence the rotation into stocks at valuations that can only be supported an extremely strong economic recovery. I think we still have a long way to fall in this bear market. That should happen unless we see a lot more signs of a real strong business led economic recovery. Unfortunately for shorts the SOX may end up above 400 before reality brings it back down in my opinion. This just in:
MU reaffirms 2003 capex -- Dow Jones cited
Sector Watch: Semiconductor - Sector slips slowly lower (SOX at 362 -3.1%) but holding near support in the 360 area thus far. Pressuring the SOX today are: MU -6%, ALTR -5.5%, TER -4%, LLTC -4.6%, MXIM -3.2%, NVLS -3.5%, AMAT -2% and LSI -2.7%. Short term need to see follow through upticks beyond resistance at 365 to neutralize the recent weaker bias. Failure suggest potential for further downticks with next supports at 355 and 351. A similar resistance for the semi HOLDRS is at 28.8/28.9.
As for gold technically speaking I think the XAU probably hits 60 again before I would think its time to get aggressive. It's at almost 64 now.
stockcharts.com[h,a]daclyyay[pb50,200!d20,2!c20!c10!c200][vc60][iUb14!Uk14!La12,26,9!Ld20]&pref=G
RtS |
